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32 Cards in this Set
- Front
- Back
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Profit Motive |
What drives people on decisions for improvement of their material well-being |
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Open Opportunity |
A principle that anyone can compete in the market-place
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Legal Equality |
Principle that everyone has the same legal rights
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Private Property Rights |
Gives people the right to control their possessions and use them as they wish
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Free Contract |
Allows people to decide what agreements they want to enter into
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Voluntary Exchange |
Allows people to decide what, when, and how they want to buy and sell
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Interest Group |
A private organization that tries to persuade public officials to act in ways that benefit its members
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Patriotism |
Love of one's country
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Eminent Domain |
Right of a government to take private property for public use
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Public Interest |
The concerns of society as a whole |
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Public Disclosure Laws |
Laws requiring companies to provide information about their products and services
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Macroeconomics |
The study of economic behaviour and decision-making in a nation's whole economy |
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Microeconomics |
The study of economic behaviour and decision-making in small units, such as households and firms
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Gross Domestic Product |
The total value of all final goods and services produced in a country in a given year |
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Business Cycle |
A period of macroeconomic expansion, or growth, followed by one of contraction, or decline
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Referendum |
A proposed law submitted directly to the public |
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Obsolescence |
Situation in which older products and processes become out-of-date
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Patent |
A government license that gives the inventor of a new product the exclusive right to produce and sell it
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Copyright |
A government license that grants an author exclusive rights to publish and sell creative works
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Work Ethic |
A commitment to the value of work
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Public Good |
A shared good or service for which it would be inefficient or impractical to make consumers pay individually and to exclude those who did not pay
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Public Sector |
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Private Sector |
The part of the economy that involves the transactions of individuals and businesses
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Infrastructure |
The basic facilities that are necessary for a society to function and grow
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Free Rider |
Someone who would not be willing 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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Market Failure |
A situation in which the free market, operating on its own, does not distribute resources efficiently
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Externality |
An economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume
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Poverty Threshold |
An income level below that which is needed to support families or households
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Welfare |
Government aid to the poor
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Cash Transfers |
Direct payments of money by the government to poor, disabled, or retired people
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In-Kind Benefits |
Goods and services provided for free or at greatly reduced prices
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Grant |
A financial award given by a government agency to a private individual or group in order to carry out a specific task |
