Flabbergasting Free Enterprise
In a market economy we rely on it to encourage people to improve their material well-being
What is the profit motive?
This amendment guarantees the right to control your own property.
What is the fifth amendment?
This term is used by economists to discuss the potential of markets to regulate themselves
What is the Invisible Hand of the market?
This measurement tells us the value of all the goods and services an economy creates.
What is GDP?
These three factors influence production
What are land, labor, and capital?
This rivalry among sellers attracts customers while lowering costs
What is competition?
The right that allows people and companies to decide what agreements they want to enter into
What is the right to free contract?
This economic system involves decisions on production and consumption of goods and services relying wholly on voluntary exchange.
What is a market economy?
This is a period of macroeconomic expansion followed by contraction.
What is the business cycle?
The most desirable alternative given up as a result of a decision.
What is opportunity cost?
The concept that individuals should maintain control over the decisions made concerning their possessions
What are private property rights?
These laws require companies to provide full information about their products
What are public disclosure laws?
This economic system involves a single authority making all decisions about production.
What is a centrally planned/command economy?
This part of the economy covers all interactions not involving exchange with the government.
What is the private sector?
A graph that shows alternative ways to use an economy's resources
What is a production possibilities curve?
Consumers join these private organizations to try to persuade public individuals to act a certain way
What is an interest group?
Article I of the Constitution allows Congress to create these as long as the direct application effects all members of the population equally.
What are taxes?
This is the concentration of the productive efforts of individuals on a limited number of activities.
What is specialization?
This economic side effect of a service generates benefits or costs to someone other than the person deciding how much to produce or consume.
What is an externality?
Using resources in such a way to maximize productive output
What is efficiency?
Ideally people become these to control what a market economy should produce
What are consumers?
Governments deem a matter to have this when they believe it concerns all of their people.
What is public interest?
Economic growth guarantees that this stays stable for the people living within a system.
What is the standard of living?
This is a situation in which the market does not efficiently distribute resources.
What is a market failure?
The law that states that more and more resources are necessary to increase production of a second of two items as production switches from one item to another
What is the law of increasing costs?