Chapter 3 Flashcards
The concept that people may decide what agreements they want to enter into
Free Contract
The force that encourages people and organizations to improve their material well-being
Profit Motive
The struggle among producers for the dollars of consumers; the rivalry among sellers
Competition
Laws requiring companies to provide full information about their products
Public Disclosure Laws
The total value of all final goods and services produced in a particular economy
Gross Domestic Product
A period of macroeconomic expansion followed by a period of contraction
Business Cycle
A commitment to the value of work and purposeful activity
Work Ethic
The process used to produce a good or service
Technology
A shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers
Public Good
The part of the economy that involves the transactions of individuals and businesses
Private Sector
Someone who would not choose to pay for certain good or service
Free Rider
A situation in which the market does not distribute resources efficiently
Market Failure
An income level below which income is insufficient to support families or households
Poverty Threshold
Government aid to the poor
Welfare
Goods and services provided for free or at greatly reduced prices
In-Kind Benefits
