Chapter 3 Flashcards
Constitutional protections
Property rights of the people are protected under the 5th Amendment
The constitution dictates the power to tax
Basic principles of free enterprise
Profit Motive
Open opportunity
Economic rights
Role of the government in a free enterprise system
Access to information
Protect the healthy, safety, and well being of the population
Business cycles
Business cycle is following the expansion and decline, and have to be major fluctuations. There will always be downturns, but it is unknown how long or deep these are.
Things done to promote economic strength
Increase employment
Economic growth
Stability
Public good
Shared good where it is impractical or inefficient to make a consumer pay individually and exclude non-taxpayers
Free rider problem
Using resources without paying for them
What are safety nets and why do we need them?
These are in place for people that are struggling or have unforeseen circumstances. Examples would be the welfare program and social programs.
