American Free Enterprise

Question 1

Public Interest

Answer 1

Concerns of the public as a whole

Question 2

Public Policy

Answer 2

Laws and standards on topics of public interest

Question 3

Interest Group

Answer 3

Private organization that tries to persuade public officials to act or vote according to group members’ interests

Question 4

Public Disclosure Laws

Answer 4

Laws requiring companies to provide full information about their products

Question 5

Poverty Threshold

Answer 5

Income level below that which is needed to support families or households

Question 6

Welfare

Answer 6

Government aid to the poor

Question 7

Cash Transfers

Answer 7

Direct payments of money to eligible poor people

Question 8

In-kind-Benefits

Answer 8

Goods and services provided for free or at greatly reduced prices

Question 9

Market Failure

Answer 9

Situation in which the market does not distribute resources efficiently

Question 10

Public Good

Answer 10

Shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers

Question 11

Public Sector

Answer 11

Part of the economy that involves the transactions of the government

Question 12

Private Sector

Answer 12

Part of the economy that involves the transactions of individuals and businesses

Question 13

Free Rider

Answer 13

Someone who would not choose to pay for a certain good or service, but who would get the benefits of it anyway if it were provided as a public good

Question 14

Externality

Answer 14

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

Question 15

Macroeconomics

Answer 15

Study of the behavior and decision making of entire economies

Question 16

Microeconomics

Answer 16

Study of the economic behavior and decision making of small units, such as individuals, families, and businesses

Question 17

Gross Domestic Product (GDP)

Answer 17

Total value of all final goods and services produced in a particular economy

Question 18

Business Cycle

Answer 18

Period of macroeconomic expansion followed by a period of contraction

Question 19

Technology

Answer 19

Process used to produce a good or service