Econ Vocab Chpt 3

  1. profit motive
    The force that encourages ppl and organizations to improve their material well-being.
  2. Open Opportunity
    The concept that everyone can compete in the marketplace.
  3. Private Property Rights
    Concept that ppl have the right and privilege to control their possessions as they wish.
  4. Free Contract
    Concept that ppl may decide what agreement they want to enter into.
  5. Voluntary Exchange
    Concept that ppl may and decide what and when they want to buy and sell.
  6. Competition
    Rivalry among sellers to attract customers while lowering costs.
  7. Interest Group
    Private organi that tries to persuade public officials to act or vote according group members' interests.
  8. Public Disclosure Laws
    Laws requiring companies to provide full information about their products.
  9. Public Interest
    The concerns of the public as a whole.
  10. Macroeconomics
    The study of the behavior and decision making of entire econenomies.
  11. Microeconomis
    Study of the economic behavior and decision making of small units, such as individuals, families, and businesses.
  12. Gross Domestic Product (GPD)
    The total value of all final goods and services produced in a particular economy.
  13. Business Cycle
    A period of macroeconomic expansion followed by a period of contraction.
  14. Work Ethic
    Committment to the value of work and purposeful activity.
  15. Technology
    Process used to produce a good or service.
  16. Public Good
    A shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers.
  17. Public Sector
    The part of the economy that involves the transactions of the gov.
  18. Private Sector
    The part of the economy that involes the transactions of individuals and businesses.
  19. 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.
  20. Market Failure
    Situation in which the market does not distribute resources efficiently.
  21. 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.
  22. Poverty Threshold
    An income level below that which is needed to support families or households.
  23. Welfare
    Gov aid to the poor.
  24. Cash Transfers
    Direct payments of money to eligible poor ppl.
  25. In-kind Benefits
    Goods and services provided for free or at greatly reduced prices.
  26. Legal Equality
    The concept of giving everyone the same legal rights.
Card Set
Econ Vocab Chpt 3
Words and definitions for chapter 3 Economics.