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T-EPF M1L3 Key Terms
Traditional EPF Module 1 Lesson 3 Key Terms
Term | Definition |
---|---|
Free Enterprise | Businesses are allowed to compete with little or no interference. |
Capitalism | Economic system in which citizens own and use factors of production. |
Private Property Rights | People have the right to own and use property as they see fit. |
Laissez Faire | French term meaning “to let alone.” Government should not interfere with business. |
Profit | The amount of money left over after all the costs of production have been paid. |
Profit Motive | What encourages people to take the risk to open a business or engage in other economic activities. |
Competition | The struggle between buyers and sellers to get the best products at the lowest prices. |
Monopoly | Exists when there is only one producer of a good or service. |
Oligopoly | When a few businesses are the only providers of a good or service. |
Monopolistic Competition | Exists when there are a few producers of a good or service but the products are not identical. |
Pure Competition | Exists when they are a large number of sellers producing identical products. |