Free Enterprise Fundamentals
What is the incentive that drives individuals and business owners?
Profit Motive
What is the study of economic behavior in a nation's whole economy?
Macroeconomics
What is a shared good/service where it's impractical to make individuals pay?
Public Good
What is the income level below which income is insufficient for a family?
Poverty Threshold
Which medical program specifically covers the elderly (65+) and disabled?
Medicare
What principle ensures everyone has the same legal rights in the economy?
Legal Equality
What is the total value of all final goods and services produced in a year?
Gross Domestic Product (GDP)
What do you call someone who benefits from a good without paying for it?
Free Rider
Which US President started the welfare system during the Great Depression?
Franklin D. Roosevelt (FDR)
Which medical program covers the poor who are unemployed or uninsured?
Medicaid
What is a private organization that tries to persuade public officials?
Interest Group
What is a period of macroeconomic expansion followed by contraction?
Business Cycle
What occurs when the market does not distribute resources efficiently?
Market Failure
What are the 4 main cash transfer programs listed in the text?
Social Security, TANF, Workers' Comp, and Unemployment
What are two ways the government encourages private charitable action?
Tax deductions and grants
What laws require companies to give consumers full product information?
Public Disclosure Laws
What is the term for when older products or processes become out-of-date?
Obsolescence
What is an economic side effect that generates unintended costs or benefits?
Externality
What is the main way the US government tries to ease poverty?
Redistributing wealth/income
What are the 3 main in-kind benefits listed in the textbook?
Food stamps, subsidized housing, and legal aid
What is the primary role of the consumer in a free market?
Signaling producers what to make and how much
How does the government typically encourage innovation?
Patents and Copyrights
What is the term for the basic facilities needed for a society to function?
Infrastructure
As the cost of goods and services increases, what happens to the poverty threshold?
It increases
What is the definition of public interest?
The concerns of society as a whole