Characteristics of Free Enterprise
Concept that drives individuals and businesses to make decisions that improve their well-being
Profit Motive
The study of economic behavior and decision-making in a nation’s whole economy
Macroeconomics
Proposed laws submitted directly to the public, on spending or other economic issues
Referendums
a shared good or service for which it would be inefficient or impractical to make consumers pay individually and to exclude those who did not pay
Public Good
Principle that anyone can compete in the marketplace
Open Opportunity
The study of economic behavior and decision making in small units
Microecnomics
Concept where older products and processes become out-of-date
Obsolescence
Basic facilities that are necessary for a society and economy to function efficiently and grow
Infrastructure
Principle that everyone has the same legal rights
Legal Equality
The total value of all final goods and services produced in a country in a given year
Gross Domestic Product (GDP)
Gives the inventor of a new product the exclusive right to produce and sell it for 20 years
Patent
Beneficial side effects generated by public goods
Positive externality
The right to people have to control their possessions and use them as they wish
Private Property Rights
The alternating pattern of periodic expansion and contraction
Business cycle
Grants an author exclusive rights. to publish and sell his or her creative works
Copyright
Unintended costs of a public good, that are paid for by someone other than the producer
Negative externality
The right of people to decide what agreements they want to enter into
Free Contract
Commitment to the value of hard work
Work Ethic