The force that encourages ppl and organizations to improve their material well-being.
Open Opportunity
The concept that everyone can compete in the marketplace.
Private Property Rights
Concept that ppl have the rightand privilege to control their possessions as they wish.
Free Contract
Concept that ppl may decide what agreement they want to enter into.
Voluntary Exchange
Concept that ppl may and decide what and when they want to buy and sell.
Competition
Rivalry among sellers to attract customers while lowering costs.
Interest Group
Private organi that tries to persuade public officials to act or vote according group members' interests.
Public Disclosure Laws
Laws requiring companies to provide full information about their products.
Public Interest
The concerns of the public as a whole.
Macroeconomics
The study of the behavior and decision making of entire econenomies.
Microeconomis
Study of the economic behavior and decision making of small units, such as individuals, families, and businesses.
Gross Domestic Product (GPD)
The total value of all final goods and services produced in a particular economy.
Business Cycle
A period of macroeconomic expansion followed by a period of contraction.
Work Ethic
Committment to the value of work and purposeful activity.
Technology
Process used to produce a good or service.
Public Good
A shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers.
Public Sector
The part of the economy that involves the transactions of the gov.
Private Sector
The part of the economy that involes the transactions of individuals and businesses.
Free Rider
Someone who would not choose to pay for a certain good or service, but still gets benefits if it's offered as a public good.
Market Failure
Situation in which the market does not distribute resources efficiently.
Externality
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.
Poverty Threshold
An income level below that which is needed to support families or households.
Welfare
Gov aid to the poor.
Cash Transfers
Direct payments of money to eligible poor ppl.
In-kind Benefits
Goods and services provided for free or at greatly reduced prices.
Legal Equality
The concept of giving everyone the same legal rights.