Money
The force that encourages people and organizations to improve their material and well-being
what is profit motive?
what is open opportunity?
People have the right to control their possessions as they wish
what are private property rights?
the rivalry among sellers to attract customers while lowering costs
what is competition?
The concept that people decide what contracts they may want to enter into
what is free contract?
The concept that people may decide what and when they want to buy and sell
what is voluntary exchange?
Laws requiring companies to provide full information about their products
what are public disclosure laws?
a private group or organization that tries to persuade public officials to act or vote according to group members' interests
what is an interest group?
a commitment to the value of work and purpose of an activity
what is work ethic?
the study of decision making of entire economies
what is macroeconomics?
The total value of all final goods and services produced in an entire company
what is GDP?
The concerns of public as a whole
what is public interest?
the part of the economy that involves the transactions of individuals and businesses
what is the private sector?
the process used to produce a good or service
what is technology?
the study of decision making of smaller units like individuals and small businesses
what is microeconomics?
Direct payments of money to eligible poor people
what are cash transfers?
A shared good or service in which it would be impractical to make consumers pay individually and exclude nonpayers
what is public good?
an income below that of which is needed to support a family or household
what is the poverty threshold?
an economic side effect of a good or service that generates benefits to someone other than the person deciding how much to produce or consume
what is externality?
someone who doesn't pay for a good or service but reaps the benefits as if they did
free rider
goods and services provided for free or at greatly reduced prices
what are in-kind benefits?
The part of the economy that involves transactions of the government
what is public sector?
Government aid to the poor
what is welfare?
a period of macroeconomic expansion followed by a period of contraction
what is a business cycle?
a situation in which the market does not distribute resources effectively
what is market failure?