Final - 1st 30 Flashcards
The profit motive is the
incentive to improve material well-being and is responsible for the growth of the free enterprise system.
The factors of production include
land, labor, capital, entrepreneur
An entrepreneur is
the person who organizes and manages land, labor, and capital.
Consumers determine
what to produce.
Consumer sovereignty means the…
consumer is the ruler of the market
Some states protect workers from
layoffs and illness by setting up unemployment compensation programs
The government has become a
protector, provider against harm, regulator and consumer
Social Security is a
federal program of disability and retirement benefits that covers most working people
Inflation is a rise in
the general level of crisis
Inflation is a general rise in
prices overtime
A modified free enterprise economy is a
market economy in which people freely carry on economic affairs but are subject to some government regulation
Supply is the
amount of a product that would be produced, grown, or acquired and offered or sale at all possible prices that could prevail in the market.
Law of Supply
The principle that more will be offered for sale at higher prices than lower prices.
Quantity Supplied
The amount that a single producer or all producers bring to market at any given price. It’s a point on the supply curve.
Subsidy
A government payment to encourage or protect a certain economic activity.