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45 Cards in this Set
- Front
- Back
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The social and political commitment to giving people the freedom and flexibility to try out their business ideas and compete in the market place
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Free Enterprise
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Features of the Free Enterprise System
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Economic Freedom, Competition, Private Property, Self-Interest, Contracts, Voluntary Exchange, Profit Motive.
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There is constitutional recognition to ____ ____ in the 5th amendment and 14th amendment clause.
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Property Rights
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Basic Principles of the Free Enterprise System
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Profit Motive, and Open Opportunity
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Force that encourages people and organizations to improve their material well-being. Forces management to exercise financial discipline b/c it makes people economically responsible for their own success or failure.
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Profit Motive
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Concept that everyone can compete in the marketplace
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open opportunity
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Economic Rights
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Legal Equality, Private Property Rights, Free Contract, Voluntary exchange, Competition, Interest Group, Public Interest
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Giving everyone the same legal rights. This maxamizes a country's use of its human capital.
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Legal Equality
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Concept that people have the right and privelage to control their posessions as they wish.
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Private Property Rights
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Allow People to decide what agreements they want to enter into
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Free Contract
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Allows people to decide what and when they want to buy and sell.
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Voluntary Exchange
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rivalry among sellers to attract customers while lowering costs.
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Competition
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Fundamental purpose of the ____ ____ ____ is to give consumers the freedom to make their own economic choices
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Free Enterprise System
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private organization that tries to persuade public officials to act or vote according to the interests of the group's members.
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Interest Group
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Require companies to give consumers important info about their product
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Public Disclosure laws
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The concerns of the public as a whole
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public interest
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FTC
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Enacts and enforces antitrust laws to protects consumers
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sets and enforces standards of food drugs and cosmetic products
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FDA
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FAA
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Regulates civil aviation, Air-traffic and piloting standards and air commerce.
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Regulates civilian use of nuclear products
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NRC
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The study of the behavior and decision making of entire economies
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macroeconomics
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The study of the economic behavior and decision making of small units such as individuals families and households and businesses
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microeconomics
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The total valuse of all final goods and services produced in a particular economy
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Gross Domestic Product (GDP)
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a period of macroeconomics expansion followed by a period of contraction or decline
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Business Cycle
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Who plays a role in attempting to prevent wild swings in economic behavior?
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The government
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What was made to aim to stabilize the economy?
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Public Policies
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Three main outcomes to stabilize the economy are ...
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high employment, steady growth, and stable prices.
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A commitment to the value of work and purposeful activity.
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Work Ethic
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the process used to produce a good or service
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technology
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A US ___ gives the inventor of a new product the exclusive right to publish and sell his or her creative works.
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Patent
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A shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers
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public good
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what are two factors in deciding a good or service is public
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1.the benefit to each individual is less than the cost that each would have to pay if it were provided privately
2. the total benefits to society are greater than the total cost. |
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The part of the economy that involves the transactions of the government
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public sector
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the part of the economy that involves the transactions of individuals and businesses
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private sector
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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
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free rider
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a situation in which the market does not distribute resources efficiently
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market failure
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an economic side effect of a good or service that generates benefits of costs to someone other than the person deciding how much to produce or consume
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externality
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an income level below that which is needed to support families or households
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poverty threshold
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government aid to the poor
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welfare
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direct payments of money to poor disabled and retired people.
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cash transfers
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program aims to move people from welfare dependence to the work force
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TANF (temporary assistance for needy families)
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provides cash transfers of retirement income to the elderly and living expenses to disabled americans
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social security
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provide money to eligible workers who have lost their jobs.
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unemployment
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cash transfer of state funds to workers injured on the job
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workers' compensation
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goods and services provided for free or at greatly reduced prices
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in-kind benefits
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