Chapter 3 Flashcards
Open opportunity
The concept that everyone can compete in the market place
Profit motive
The force that encourages people and organizations to improve their material well-being
Legal Equality
The concept of giving everyone the same legal rights
Private property rights
The concept that people have the right and privilege to control their possessions as they wish
Free contract
People may decide what agreements they enter into
Public disclosure Laws
Requires companies to provide full info about the product
Public Good
A shared good or service that is impractical to make consumers pay individually or to exclude from no payers
Public Sector
Involves transactions of the government
Private sector
In olives transactions of people or business
Free rider
A person who receives a good or service but would still benefit if it were provided to the general public
Market Failure
Situation where resource are not distributed efficiently
Poverty threshold
Income level below that which is needed to support families or households
Cash payments
Direct transfer of money to eligible poor people
Social Security
Cash transfers to the elderly and disabled
Worker’s Compensation
Cash to those injured on the job
