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Economics C3: American Free Enterprise

Terms

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What is a Profit Motive?
The force that encourages people and organizations to improve their material well- being
What is Open Opportunity?
The concept that everyone can compete in the marketplace.
What is Legal Equity?
The concept of giving everyone the same legal rights.
What is a Free Contract?
The concept that people have the right and privilege to control their possessions as they wish.
What is Competition?
The rivalry among sellers to attract customers while lowering costs.
What is an Interest Group?
A private organization that tries to persuade public officials to act or vote according to group members interests.
What is a Public Disclosure Law?
A law requiring companies to provide full information about their products.
What is Public Interest?
The concerns of the public as a whole.
What is Macroeconomics?
The study of the behavior and decision making of entire economies.
What is Microeconomics?
The study of the economic behavior and decision-making of small units, such as individuals, families, households, and businesses.
What is the Gross Domestic Product? (GDP)
The total value of all final goods & services produced within a particular economy.
What is a Business Cycle?
A period of Macroeconomic expansion followed by a period of contraction/decline.
What is the Public Good?
A shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers
What is the Public Sector?
The part of the economy that involves the transactions of the government.
What is the Private Sector?
The part of the economy that involves the transactions of individuals and businesses.
What is a Free Rider?
Someone who would not choose to pay for a certain good/service, but who would get the benefits of it anyway, if it were provided as a public good.
What is Externality?
An economic side effect of a good/service that generates benefits or costs to someone other than the person deciding how much to produce or consume.
What is a Poverty Threshold?
An income level below that which is needed to support families or households.
What is Welfare?
Government aid to the poor.
What are Cash Transfers?
Direct payments of money to eligible poor people.
What are In-Kind Benefits?
Goods and services provided for free or at greatly reduced prices.
What is Market Failure?
A situation in which the market does not distribute resources efficiently.
What is the Work Ethic?
A commitment to the value of work and purposeful activity.
What is Technology?
The process used to produce a good or service.
What are Private Property Rights?
The concept that people have the right & privilege to control their possessions as they wish.

Deck Info

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