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Capitalism
Private citizens own and use the factors of production to make products and generate profits
Free market
When products can be bought and sold without government regulations or interference
Free enterprise
Economic system in which privately owned businesses have the freedom to operate for a profit with limited government intervention
Economic freedom, voluntary exchange, private property rights, profit motive, competition
A capitalistic free enterprise economy has 5 important characteristics
Economic freedom
The freedom to choose to buy what you want or to choose your occupation, employer, or to move to another job
Voluntary exchange
Voluntary acts of buyers and sellers freely and willingly engaging in market transactions
Private property rights
Allows people to own and control their possessions as they wish
Profit
Difference between the revenue from sales and the full opportunity cost of resources involved in producing the sales
Profit motive
The incentive to improve your material well being/ what motivates people to risk part of their wealth
Competition
The struggle among sellers to attract consumers with the best products at the lowest price
Biofuels
Fuels whose energy is derived from renewable plant, animal materials, vegetable oils, and industrial waste
Free market capitalist economy
The success of the US has led to many other nations having a ___ ____ _____ _____ , or are transitioning to one
Great recession
Severe economic downturn that lasted from December 2007 till mid 2009
Consumers product safety commission
Set up to protect consumers-established in 1972
Catalyst
Something that stimulates activity among people or other forces
Consumer sovereignty
Role of consumer as ruler of the market in determining the types of goods and services produced
Regulator
Someone or something that controls activities
More, combines
The government spends ____ than all private businesses ________
Minimum wage
The lowest legal wage that can be paid to most workers
Adverse
Unfavorable or harmful
Social security
A federal program of disability and retirement benefits that covers most working people-90% of all workers are in the social security system
Medicare
Federal health insurance program for senior citizens (65) regardless of income
Inflation
Rise in the general level of prices results in workers needing more money to pay for the basics necessities
Fixed income
Income that does not increase over time- makes it harder to pay bills and plan for the future
Accommodate
To allow for
Note 
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