Help
Options
Question
A capitalist system is also known as a_________________
system because anyone is free to start a business or enterprise.
system because anyone is free to start a business or enterprise.
click to flip
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't know
Question
the ability of everyone to enter and compete in the market of his or her own free choice
Remaining cards (54)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Econ Chapter 3
| Question | Answer |
|---|---|
| A capitalist system is also known as a_________________ system because anyone is free to start a business or enterprise. | free enterprise |
| the ability of everyone to enter and compete in the market of his or her own free choice | open opportunity |
| Free enterprise also requires __________________, a situation in which everyone has the same economic rights under the law. | legal equality |
| the incentive that encourages people and organizations to improve their material well-being by seeking to gain from economic activities | profit motive |
| a situation in which people decide for themselves which legal agreements to enter into | free contract |
| Everyone should have the ability to enter and compete in any marketplace. Open participation serves as an incentive to be efficient and productive. | Open Opportunity |
| Everyone should have the same economic rights under the law. In other words, the law should not give some people a better chance than others to succeed in the marketplace. | Legal Equality |
| Everyone should have the right to decide for themselves which legal economic agreements they want to enter into. Voluntary exchange, a cornerstone of free enterprise, cannot function without freedom of contract. | Free Contract |
| If people who are not part of a marketplace interaction benefit from it or pay part of the costs, there is (a) ______________. | market failure |
| Goods and services that are provided by the government and consumed by the public as a group are (is) ________________. | public goods |
| A ________ is a person who chooses not to pay for a good or service but who benefits from it when it is provided. | free rider |
| The private and public sectors share the responsibility for the nation’s _____________, the goods and services that are necessary for the smooth functioning of society, such as highways; mass transit; power, water, and sewer systems.. | infrastructure |
| An _________ is a side effect of a transaction that affects someone other than the producer or the buyer. | externality |
| A ____________ is an externality that is a negative effect, or cost, for people who were not involved in the original economic activity. | negative externality |
| A ___________ is an externality that is a positive effect, or benefit, for people who were not involved in the original economic activity. | positive externality |
| the money left over after the costs of producing a product are subtracted from the income gained by selling that product | profit |
| a mixed economic system that includes some government protections, provisions, and regulations to adjust the free enterprise system | modified free enterprise economy |
| a situation in which people who are not part of a marketplace interaction benefit from it or pay part of its costs | market failure |
| goods and services provided by the government and consumed by the public as a group | public goods |
| a person who does not pay for a good or service but who benefits from it when it is provided | free rider |
| the basic set of support systems—such as power, communications, transportation, water, sanitation, and education systems—needed to keep an economy and society going | infrastructure |
| a government payment that helps cover the cost of an economic activity that can benefit the public as a whole | subsidy |
| government programs designed to protect people from economic hardships | safety net |
| a transfer payment in which the government transfers income from taxpayers to recipients who do not provide anything in return | public transfer payment |
| transfers of income from one person or group to another even though the receiver does not provide any goods or services in return. | transfer payments |
| The money left after production costs are subtracted from revenue is called | profit |
| A person who chooses to, and is free to, open a grocery store is participating in a | free enterprise economy |
| Most people are inspired to start a business by the | profit motive |
| Why did an "informal market" develop in Mexico? | to avoid government regulations for starting businesses |
| A chain bookseller forcing many individual booksellers to go out of business is an example of | competition changing the marketplace |
| Free contract means that people can choose | for themselves what legal agreements to enter into |
| The incentive to improve material well-being by seeking to gain from economic activities is called | profit motive |
| Individual booksellers that have competed well against chain booksellers have often | focused on local needs |
| In the marketplace, producers are looking to | earn a profit |
| Open opportunity helps to ensure that everyone is free to | start businesses |
| Producers determine the allocation of scarce resources by seeking | profits and responding to consumer votes on a product |
| Consumers "vote" by choosing | a product over competing products |
| If dry pasta began to receive more consumer votes through increased purchases, producers likely would | allocate more resources into the production of dry pasta |
| An Italian restaurant earns a profit, causing other Italian restaurants to open, is an example of | allocating resources based on profit? |
| Typically, when households are shown on the on the right side of a circular flow model of a modified free enterprise system, businesses are located | on the left |
| The center of a typical circular flow model showing a modified free enterprise system is occupied by | government |
| A modified free enterprise system | has some government involvement in the economy |
| In modified free enterprise system, the government is a consumer in | both the resource and product market |
| In modified free enterprise system, the government is a producer for | both businesses and households |
| an economy that has a few regulations that adjust free enterprise is a | modified free enterprise economy |
| A market failure occurs when people who are not part of a marketplace interaction | benefit from of it |
| Public goods are funded by | taxes collected by the government |
| A person who does not pay for a service but benefits from it is called a(n) | free rider |
| Street lighting is an example of a | public good |
| A common way of dealing with the free rider problem is for | the government to provide the good or service |
| a public park with an entrance fee is an example of a | toll good |
| An externality is a side effect of a transaction that affects | someone other than the buyer or producer |
| A public transfer payment happens when the government transfers income from | taxpayers to recipients who do not provide anything in return |
| Government programs that protect people from economic hardship are called a | public safety net |
| The U.S. government often makes transfer payments to | the aged and disabled |
Created by:
kdjones216a1
Popular Economics sets