Section 1
What does the American economy rest on a recognition of importance?
Profit Motive
The total value of all final goods and services produced in a economy.
GDP
A shared good or service for which it would be inefficient or impractical to make consumers pay individually and to exclude nonpayers.
Public Good
What is an income level that is below from what is needed to support families or households?
Poverty Threshold
The rivalry among sellers to attract customers while lowering costs.
Competition
Legal Equality
A period of macroeconomic expansion followed by a period of contraction, or decline.
Business Cycle
What are public goods financed by?
Public Sector
What is the general term that refers to government aid for the poor?
The study of the behavior and decision making of entire economies.
The concept that people have the right and privilege to control their possessions as they wish.
Technology
Who is someone that would make the decision to not pay for a certain good or service, but would in the end still receive the benefits of it anyway as these benefits are provided as public goods.
Free Rider
What are direct payments of money to the poor that are provided by the State and Federal governments?
Cash Transfers
Something that free riders are an example of.
Market Failure
Allows people to decide what agreements they want to enter into.
Free Contract
What is the commitment to the value of work and purposeful activity?
Work Ethic
What is an 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?
Externality
The government also provides this to poor people with goods and services provided for free or at greatly reduced prices.
In-Kind Benefits
The part of the economy that involves transactions of individuals and businesses that would have little incentive to produce public goods.
Private Sector
Allows people to decide what and when they want to buy and sell, rather than forcing them to buy or sell at particular times or at specific prices.
Voluntary Exchange
Any Single Consumer
What are the programs that distribute cash transfers?
What is the difference between positive and negative externalities
Positive - The Such Beneficial Side
Negative - Unintended Costs