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23 Cards in this Set
- Front
- Back
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The force that encourages people and businesses to work hard.
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Profit Motive
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The study of the economic behavior or small units, such as individuals.
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Microeconomics
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A shared good or service for which it would be inefficient or impractical to make consumers pay for individually or exclude nonpayers.
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Public Good
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Government aid to the poor. |
Welfare |
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What is the difference between the public sector and the private sector? |
Public Sector has government involvement. Ex: Teachers working at a school. They get paid with taxes. Private sector is involvement of individuals and businesses. Ex: Nike is private, because they are not controlled by the government.
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The rivalry among sellers to attract customers while lowering costs.
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Competition
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The study of the behavior and decision making of entire economies. |
macroeconomics |
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List 3 examples of public goods. |
Bus sign, school, roads
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Direct payments of money to eligible poor people. |
Cash Transfers
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Give an example of a market failure. |
Free Riders or Externalities
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How do patents and copyrights promote innovation? |
So people who buy their product does not copy it and make more profit
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Someone who would not choose to pay for a certain good or service, but who would get the benefits of it anyway if it were provided as a public good. |
Free Rider
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Goods and services provided for free or at greatly reduced prices. |
In-Kind Benefits
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Why are public goods provided? |
So the environment is more efficient. Ex: If the roads had pot holes everywhere, it would ruin our tires on the cars, and good roads would be a lot better to drive on daily |
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The concept that people have the right and privilege to control their possessions as they wish. |
Private Property Rights |
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Explain the American business cycle. |
The American Business cycle goes up and down
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An economic side effect of a good or service that generates benifits or cost to someone other than the person deciding how much to produce or consume. |
Externality
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Give two examples of cash transfers. |
Social Security, Unemployment
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Give two examples of in-kind benefits. |
Food Stamps, Food Giveaway |
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How does the government try to stop problems in our free enterprise system? |
By creating regulations
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List an example of two positive and two negative externalities. |
Positive: Fixing an old house, Negative: Keying someones car, free rider |
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What is the difference between Medicare and Medicaid? |
Medicare: Health insurance for the old and disabled
Medicade: health insurance for the poor |
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What form does one need to fill out to apply for federal student aid for college?
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FAFSA
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