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32 Cards in this Set
- Front
- Back
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Profit motive |
The incentive that drives individuals and business owners to improve their material well-being |
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Open opportunity |
The principle that anyone can compete in the marketplace |
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Legal equalty |
The principle that everyone has the same legal rights |
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Private property rights |
The principle that people have the right to control their possessions and use them as they wish |
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Free contract |
The principle that people may decide what agreements they want to enter into |
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Voluntary exchange |
The principle that people may 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 |
The 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 or services |
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Macroeconomics |
The study of economic behavior and decision-making in a nation's whole economy |
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Microeconomics |
The study of the economic behavior 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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Buisness cycle |
A period of microeconomic 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 comitement 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 |
The part of the economy that involves the transactions of the government |
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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 benifts 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 economic 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 |
