Econ Chaoter 3 Flashcards
Regulator
Role of national government in preserving marketplace competition
Entrepreneur
Risk take ring individual in search of profits
Mixed economy
Economic system with combination of command, traditional, and market economies
Catalyst
Something that stimulates activity among forces or people
Consumer
Ruler of the market in deterring goods and services produced
The phrase the customer is always right is most often associated with that term?
Consumer sovereignty
How does the government operate in a free enterprise economy?
It establishes laws and rules to maintain competition
It is a role protector of the American free enterprise system, one of the issue the government must deal with is…?
Environmental hazards
Who ultimately determines the success of a product?
Consumer
Consumer can influence the production and sale of goods by..?
Voting with their dollars
When Economy is capitalist and has free market it can be said that the economy is based on
Free enterprise
One All the characteristics of the USA economy is a … role of the government
Limited
Between 2009 and 2009 the us went through a difficult economic period
Great recession
…. motives Is what drives people and organizations to improve their material will being
Profit
Three synonyms terms to describe the US economic system are free enterprise capitalism and
Free market
The Dollar value of all final goods and services structure produced in a country in a year is known as
Gross domestic product
The struggle among sellers to attract consumers by offering the best products at the lowest prices known as
Competition
What motivates people to work save and invest
Incentives
What does people and businesses the opportunity to make your own decisions
Economic freedom
an economic system in which private citizens own and use the factors of production to produce and generate profits
Capitalism
an economic system in which privately owned businesses have the freedom to operate with limited government intervention.
Free enterprise
5 important characteristics of a capitalistic free enterprise economy.
1 economic freedom ( to buy things you want to choose your occupation and your employer)
2 voluntary exchange ( the act of buyers and sellers freely exchange goods)
3 private property rights ( the right to one end control your own possession)
4 profit motive ( the incentive to improve one’s material well being)
5 competition ( the struggle among sellers to attract consumers)
Benefits of Free Enterprise
1 individual freedom - choices
2 a variety of Goods - incredible variety stuff
3 adapting to change - prices ( increase in price of gas - adapting by producing more gas efficient automobiles)
4 promoting progress - (cell phone evolution great example)
5 creation of wealth: GDP ( gross domestic product) the dollar value of all goods and services in a country in a 12 month period - made the USA the 2nd largest economy
Major disadvantage of a free enterprise
Uneven economic growth ( recessions and depressions)
Growing Gaps between Rich and Poor ( gilded age - 1900 - 56% poverty rate! Today 12% poverty rate)
the dollar value of all final goods, services, and structures produced in one year in a country
GDP
A person who organizes and manages the factors of production
Entrepreneurs
Role of entrepreneurs
Spark plug and the catalyst of the free enterprise economy
Role of high rate of consumer
They determine what to produce is to sovereign
Role of government
Protect the People, provide services for the people, regulate business, consumer goods
Minimum wage.
Lowest legal wage that can be paid to most workers
Social security
Federal program of disability and retirement benefits that covers most working place
Medicare
Federal health insurance program for senior citizens, regardless of income
Medicaid
Federal health insurance program for lower income families
Inflation
Rise in the general Lovell of prices
Fixed income
Income that does not increase over time
