Question | Answer |
the force that encourages people and organizations to improve their material well-being | profit motive |
the concept that everyone can compete in the marketplace | open opportunity |
the concept of giving everyone the same legal rights | legal equality |
the concept that people have the right and privilege to control their possessions as they wish | private property rights |
the concept that people may decide what agreements they want to enter into | free contract |
the concept that people may decide what and when they want to buy and sell | voluntary exchange |
the rivalry among sellers to attract customers while lowering costs | competition |
a private organization that tries to persuade public officials to act or vote a certain way | interest group |
laws which require companies to give consumers important information about their products | public disclosure laws |
the concerns of the public as a whole | public interest |
the study of the behavior and decision making of entire economies | macroeconomics |
the study of the economic behavior and decision making of small units, such as individuals, families, and businesses | microeconomics |
the total value of all final goods and services produced in a particular economy | gross domestic product (GDP) |
a period of macroeconomic expansion followed by a period of contraction | business cycle |
a commitment to the value of work and purposeful activity | work ethic |
the process used to produce a good or service | technology |
the part of the economy that involves the transactions of the government | public sector |
the part of the economy that involves the transactions of individuals and businesses | private sector |
someone who would not choose to pay for a certain good or service, but who would get the benefits of it anyway if it were provided as a public good | free rider |
a situation in which the market does not distribute resources efficiently | market failure |
free riders consume what they don't ____ for | pay |
an economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume | externality |
What is unintended cost an example of? | negative externality |
an income level below that which is needed to support families or households | poverty threshold |
government aid to the poor | welfare |
direct payments of money to eligible poor people | cash transfers |
goods and services provided for free or at greatly reduced prices | in-kind benefits |
What is Social Security is an example of? | cash transfer |
What is worker's compensation an example of? | cash transfer |
What is food stamps an example of? | in-kind benefits |
What is legal aid an example of? | in-kind benefit |
What is the name of the program that provides health insurance for the elderly and disabled? | Medicare |
What is the name of the program that provides health insurance for some poor people who are unemployed? | Medicaid |
What is subsidized housing an example of? | in-kind benefits |
What is unemployment insurance an example of? | cash transfer |
Which program was created in 1935 during the Great Depression? | Social Security |
Which program provides a cash transfer when a person is injured on the job? | workers' compensation |
Which program provides a cash transfer for poor families and was called "welfare" in the past? | TANF-Temporary Assistance for Needy Families |