Gov't and the Economy
What is one reason why economists believe that our free enterprise system depends on the protection of private property rights?
People who own property have a strong incentive to take care of it.
Property owners tend to use their property in the most productive ways possible.
Private ownership encourages people to develop their property in ways that benefit others.
In the United States, what is ONE way in which income is redistributed in an effort to lift people out of poverty?
Medicare
SNAP benefits (Supplemental Nutrition Assistance Program)
Social Security program
What are externalities?
the costs or benefits that affect someone other than the producer or consumer of a good or service
When the government provide subsidies or finance the cost of the good or service itself, this is an example of
positive externality
_____ is an illegal agreement between competitors to control prices, eliminating competition and leading to higher costs for consumers, involving actions like setting minimum prices, agreeing on discounts, or using algorithms to set rates.
price fixing