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30 Cards in this Set
- Front
- Back
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Profit Motive
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force that encourages people and organizations to improve their material well-being.
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open opportunity
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concept that everyone can compete in the marketplace
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legal equality
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giving everyone the same legal rights
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Private property rights
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concept that people have the right and privilege to control their possessions as they wish
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free contract
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allows people to decide what agreements they want to enter into
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voluntary exchange
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allows people to decide what and when they want to buy and sell
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competition
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the rivalry among sellers to attract customers while lowering costs
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interest group
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a private organization that tries to persuade a public offficial to act or vote according to their interests
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public disclosure laws
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require companies to give consumers important ingo about their products (warnings on prescriptions)
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public interest
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concerns of the public as a whole
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macroeconomics
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the study of he behavior and decision making of an entire economy
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microeconomics
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the study of the economic behavior and decision making of small units (individuals)
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Gross domestic product (GDP)
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total value of all final goods and services produced in an economy
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Business cycle
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a period of macroeconomic expansion followed by a period of contraction(decline)
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work ethic
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a commitment to the value of work and purposeful activity
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technology
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process used to produce a good or service.
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public good
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shared good or service for which it would be inefficient or impractical to make consumers pay individually& to exclude nonpayers
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public suctor
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part of the economy that involves the transactions of the economy that involves the transactions of the government
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private sector
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part of the economy that involves transactions of individuals and businesses. Littleincentive to produce public goods.
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free rider
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someone who would not choos to pay for a good or service but would get the benefits of it anyway
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market failure
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situation in which the market on its own, does not distribute resources efficiently.
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externality
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economic side effect of a good/service that generates benefits or costs to someone thats not making the decision
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Three major economic goals
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High employment-jobs for everyone able to work
steady growth-SOL is better than previous generations stable prices-prevent sudden changes |
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welfare
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taxes collected and redistributed to the people who are poor or in need
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in-kind benefits
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goods and services provided for free or at very low prices
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cash transfers
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direct payments of money to help poor people
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poverty threshold
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the minimum level of income needed to support a household
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temporary aid to needy families (TANF)
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a form of a welfare program.
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medicare
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Insurance for disabled, elderly people
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medicaid
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aid for those who can work but don't have insurance
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