Chapter 2- Section 2 Flashcards
How many major kinds of goals are there?
Seven
What are two kinds of goals people may share?
Economic and social goals
What are the seven goals?
Economic freedom, economic efficiency, economic equity, economic security, full employment, price stability, and economic growth
What are three examples of economic freedom for individuals?
Choosing their occupations, employers, and how to spend money
What kind of economic freedom do business owners want?
Where and how to produce
What happens if resources are wasted?
Fewer wants and needs can be satisfied
Why must economic decision making be efficient
So benefits gained are greater than costs incurred
Equity stands for what?
Fairness
What are two examples of economic equity?
Equal pay for equal work and no false claims
What is a “lemon law”?
New-car buyers can return the car if they have to many repairs
What do American workers want protection from?
Layoffs and illness
A federal program of disability and retirement benefits that covers most working people
Social Security
What kind of protection does Social Security offer?
Disability and retirement
What happens when people work?
They earn income and make goods and services for others
What happens when people do not have jobs?
They can’t support themselves or families nor provide goods output
What is inflation?
A rise in the general level of prices
What happens to people on fixed incomes when there is inflation?
Bills become harder to pay and the future becomes uncertain
What is a fixed income?
An income that does not increase even though prices go up
Why is economic growth needed as population grows?
To meet everyone’s needs
What is the opportunity cost of a policy protecting a domestic industry, such as shoe manufacturers?
There becomes a limited amount of shoe choices
What is the trade-off in increasing the minimum wage?
It increases the cost of production
