Vocabulary
The force that encourages people and organizations to improve their material well-being.
Profit Motive?
People may decide what and when they want to buy and sell.
Voluntary Exchange?
Study of the economics of entire governments and large bodies
Macroeconomics?
Technology
process used to produce a good or service?
Market Failure
Situation in which a market does not distribute resources efficiently?
Everyone can compete in the marketplace
Open Opportunity?
Competition?
Microeconomics
the study of the economic behavior of smaller bodies and communities such as individuals, families, and businesses?
Public Good
shared good or service for which it would be impractical to make consumers pay individually and exclude nonpayers?
Externality
economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume?
Giving everyone the same rights
Legal Equity?
A private organization that tries to persuade public officials to act or vote according to group members' interests
Interest Group?
GDP
The total value of the goods and services produced in an economy?
Public Sector
part of the economy that involves the transactions of the government?
Poverty Threshold
income level below that which is needed to support families or households?
People have the right and privilege to control their possessions as they wish.
Private Property Rights?
Laws that require a manufacturer to provide full information about their products
Public Disclosure Laws?
Business cycle
period of macroeconomic growth followed by a period of contraction?
Private sector
part of the economy that involves the transactions of individuals and businesses?
Welfare
Government aid to the poor?
People may decide what agreements they want to enter into.
Free Contract?
Concerns of the public as a whole
Public Interest?
Work Ethic
commitment to the value of work and purposeful activity?
Free Rider
someone who would not choose to pay for a certain good or service, but who would get the benefits of it anyway?
Cash transfers and in-kind benefits
Direct payments of money to eligible poor people?
Goods and services provided for free or at greatly reduced prices?