CHPT 3 Definitions Flashcards
Profit Motive
the incentive that drives individuals and business owners to improve to improve their material well-being
Open opportunity
the principle that anyone can participate in the marketplace
Legal equality
the principle that everyone has the same legal right
Private property rights
the principle that people have the right to control their possessions and use them how they want
Free contract
the principle that people may decide what agreements they want to enter to
Voluntary exchange
the principle that people may decide
Interest group
the private organization that tries to persuade private officials to act in ways that benefits its members
Patriotism
love for one’s country
Eminent domain
the right
of a government to take private property for public use
Public interest
the concerns for society as a whole
Public disclosure laws
laws requiring companies to provide information about their products of services
macroeconomics
the study of economic behavior and decision making in a nation’s whole economy
microeconomics
the study of the economic behavior and decision making in small units, such as households and firms
gross domestic products
the total value of all final goods and services produces in a country in a given year
business cycle
a period of macroeconomic expansion, or growth, followed by one of contraction, or decline
referendum
a proposed law submitted directly to the public
obsolescence
situation in which older products and processes become out-of-date
patent
a government license that gives the inventor of new product the exclusive right to produce and sell it
copyright
a government license that gives the inventor of a new product the exclusive rights to publish and sell creative works
work ethic
a commitment to the value of work
public good
a shared good or service for which it would be inefficient or impractical to make consumers pay individually and to exclude those who did not pay
public sector
the part of the economy that involves the transactions of the government
private sector
the part of the economy that involves the transactions of individuals and businesses
infrastructure
the basic facilities that are the necessary for a society to grow
