Studied by 4 peopleprofit motive
encourages people and organizations to improve their material well-being
open oppurtunity
everyone can compete in the market place
legal equality
giving everyone the same legal rights
private property rights
the right to control their possessions as they wish
free contract
freedom to decide what agreements they want to enter into
voluntary exchange
the right to decide what and when to buy or sell
competition
rivalry among sellers to attract consumer
public disclosure laws
requires companies to give full info on their product
public interest
the concerns of the public as a whole.
macroeconomics
the study of the behavior and decision-making of the entire economy
microeconomics
the study of the economic behavior and decision-making of small units such as individuals families and businesses.
business cycle
a period of macroeconomic expansion followed by a period of contradiction
gross domestic product
the total value of all final goods and services produced in a particular economy
technology
the process used to produce a good or service
market failure
a situation in which the market does not distribute resources efficiently
free rider
someone who would not choose to pay for certain goods of service.
poverty threshold
an income level below that which is needed to support a household.
cash transfers
direct payments of money to eligible poor people
standard of living
level of economic well-being.
in-kind benefits
goods and services provided for free or at greatly reduced prices.
welfare
government aid to the poor
2 roles of the consumer
freedom to make their own economic choices. joining an interest group to persuade public officials to act according to their interests
4 roles of the government
public disclosure laws, environmental protection, public interest, consumer protection
2 indicators of economic stability
general price levels and the health of the nations financial institutions
medicaid
health insurance for the elderly, the poor, and the disabled
Note 
Flashcard (53)