econ chapter 3 Flashcards
Entrepreneur
Risk-taking individual who brings together productive resources to produce innovative goods and services in search of profits.
Social Security
Federal program of disability and retirement benefits that covers most working people.
Biofuels
Fuel made from wood, peat, municipal solid waste, straw, corn, tires, landfill gases, fish oils, and other waste.
Competition
The struggle among sellers to attract consumers.
Fixed Income
Income that does not increase over time.
Modified Free Enterprise Economy
Free enterprise market economy where people carry on their economic affairs freely, but are subject to some government intervention and regulation.
Medicare
Federal health insurance program for senior citizens, or disabled citizens, regardless of income.
Profit Motive
The driving force that encourages people and organiztions to improve their material well-being; characteristic of capitalism and free enterprise.
Voluntary Exchange
Economic action done or brought about by free choice.
Inflation
Rise in the general level of prices across the entire economy.
Minimum Wage
Lowest legal wage that can be paid to most workers.
Consumer Sovereignty
Role of consumer as ruler of the market in determining the types of goods and services produced.
Private Property Rights
Fundamental feature of capitalism, which allows individuals to own and control their possessions as they wish; includes both tangible and intangible property.
Great Recession
Severe economic downturn that lasted from late 2007 through 2009.
Profit
The extent to which persons or organizations are better off at the end of a period than they were at the beginning; is usually measured in dollars.
