Introductory Info
The Free Enterprise System is also commonly called what?
Capitalism
Define Profit
The money that’s left over after the costs of producing a good or service have been subtracted from the revenue gained by selling the good or service.
What form of market failure decreases a private business desire to produce public goods?
Free Rider Problem
Providing free vaccinations helps to reduce healthcare costs for society by creating this.
Herd Immunity
What is a "general statement," issued by an executive agency, that has the force and effect of law?
Regulation
What's the best example of a Free Enterprise System?
America
How do consumers vote?
With their wallets
What is the relationship between merit goods and public goods?
All public goods are merit goods
The melting of polar ice caps due to global warming is an example of this type of externality.
What is the name for the action of spending money?
Expenditure
Why is the Free Enterprise called a Free Enterprise?
This form of economic system anyone is free to start a business or enterprise.
A Free enterprise system with some level of government involvement can be called what?
Modified Free Enterprise
Pure Public Goods have two characteristics to them, what are they?
They are non-excludable
2. They are non-rivalrous
Regulations impact externalities in what way?
They limit negative externalities
What is a payment by the government to consumers or producers which makes the cost received by producers greater than the market price charged to consumers?
Subsidy
What do we called a country that is transitioning into a free enterprise system from a more command market?
Emerging Markets
How do producers determine price?
They try to finding the highest price to sell good/services that consumers are willing to pay for the good.
Fireworks are an example of a market failure. Explain why.
It's a free rider problem. People are benefiting off a public good without having to bare the cost
In the video about Nestle, which state was being impacted?
Michigan
A payment made by the government from the taxpayers to recipients who do not provide anything in return is also called a....
Public transfer payment
There were 3 Keys to the Free Enterprise System. What are they?
1. Free Exchange
2. Legal Equality
3. Free Contract
Winner
There were 3 ways in which market failure can happen to merit goods. Name 2 out of the 3 we talked about.
1. Information failure of a merit good- Lack of perfect knowledge of the benefits of the merit good
2. Private benefits are not known at the time of consumption
3. The lack of an immediate benefit of a merit good. Time lag of merit goods
This term describes an externality that affects someone neither directly involved in the action nor directly impacted.
Third Party
What is the US poverty level? Closest gets the points
11.1%