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12 Cards in this Set
- Front
- Back
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Private property rights |
Are the rights of individuals and groups to own business and resources. |
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Market |
Is any place where people buy and sell goods and services. |
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Laissez Faire |
Is the principle that the government should not interfere In the marketplace. |
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Capitalism |
Is an economic system that is based on private ownership of factors or production. |
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Voluntary Exchange |
Is a trade in which both traders believe that what they are getting is worth more than what they are giving up. |
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Profit |
Is a financial gain that a seller makes from a business transaction. |
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Competition |
Involves all the action sellers, acting independently, do to get buyers to purchase their products. |
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Consumer sovereignty |
Is the idea that consumers have the ultimate control over what is produced because they are free to buy what they want and to reject what they don't want. |
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Specialization |
Is a situation in which people concentration their efforts in the activities that they do best. |
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Circular Flow Model |
Is a tool that economist use to understand how market economic operate. |
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Product market |
Is the market where goods and services are brought and sold. |
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Factor market |
Is the market for the factors of production---land, Labor, Capital, and Entrepreneurship. |
