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
Type of economy where answers to the 3 basic economic questions are made by voluntary exchange
Free Market
The invention and rise in popularity of cell phones, has caused land lines to be uncommon. This is an example of
Obsolescence
Principle that anyone can compete in the marketplace
Open Opportunity
The study of economic behavior and decision making in small units
Microeconomics
Type of economy where the government, rather than individual producers & consumers, answers the three basic economic questions.
Centrally planned
Sometimes your local government may have you vote on how public funds are spent. The proposed laws are called
The income people receive in return for supplying factors of production
Factor Payments
The total value of all final goods and services produced in a country in a given year
Gross Domestic Product (GDP)
Type of economy that relies on habit, custom, or ritual to answer the three basic economic questions.
Traditional
Companies hiring workers that were trained by another outside source would be an example of
Positive Externality
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 Goods
Doctrine that government generally should not intervene in the market place
Laissez Faire
Economic system that has some market based elements and some government involvement
Mixed
A city having to install special equipment to purify the water polluted by the nearby paper mill is an example of
Negative Externality
Basic facilities that are necessary for a society and economy to function efficiently and grow
Infrastructure
Economic system where the central government owns and controls all resources and makes all economic decisions.
Communism
The structure of methods and principles a society uses to produce and distribute goods
Economic System