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26 Cards in this Set

  • Front
  • Back
profit motive
the force that encourages people and organizations to improve their material well-being.
open oppurtunity
the concept that everyone can compete in the marketplace.
legal equality
the concept of giving everyone the same legal rights.
private property rights
the concept that people have the right and privelege to control their possessions as they wish.
free contract
the concept that people may decide what agreements they want to enter into.
voluntary exchange
the concept that people may decide what and when they want to buy and sell.
the rivalry among sellers to attract costumers while lowering costs.
interest group
a private organization that tries to persuade public officials to act or vote according to group members interests.
public disclosure laws
laws requiring companies to provide full information about their products.
public interest
the concerns of the public as a whole
the study of the behavior and decision making of entire economies.
the study of the economic behavior and decision making of small units, such as individuals, families and businesses.
gross domestic product (GDP)
the total value of all final goods and services produced in a particular economy.
business cycle
a period of macroeconomic expansion followed by a period of contraction.
work ethic
a commitment to the value of work and purposeful activity.
the process used to produce a good or service.
public good
a shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers.
public sector
the part of the economy that involves the transactions of the government.
private sector
the part of the economy that involves the transactions of individuals and businesses.
free rider
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.
market failure
a situation in which the market does not distribute resources efficiently.
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.
poverty threshold
an income level below that which is needed to support families or households.
government aid to the poor.
cash transfers
direct payments of money to eligible poor people.
in-kind benefits
goods and services provieded for free or at greatly reduced prices.