| A | B |
|---|
| free enterprise system | economic system where producers and consumers are free to engage in business with minimal government interference |
| producers | manufacturers or makers of goods & services for sale |
| consumers | buyers & users of goods & services |
| scarcity | limited resources for producing products |
| utility | satisfaction or reward received by consumers who buy products |
| supply | quantity of goods and services that producers are willing and able to provide |
| demand | willingness and ability of consumers to purchase goods and services |
| equilibrium price | price at which the quantity supplied equals the quantity demand of product |
| consumer sovereignty | consumer power to determine what will be produced and at what price |
| competition | rivalry among sellers in same market to win customers |
| monopoly | market with many buyers but only one seller |
| price-fixing | illegal agreement among competitors to sell good or service for set price |
| purchasing power | value of money, measured in amount of goods and services that it can buy |
| transfer payments | government grants to citizens paid with money collected from others through taxes |
| unearned income | grants received from government from taxes |
| bait and switch | illegal sales technique in which seller advertises a product with intention of persuading consumers to buy more expensive product |
| fake sale | merchant advertises big sale but keeps items at regular price or makes it look like price reduction |
| low-balling | advertising service at unusually low price to lure customers and attempting to persuade them that they need additional services |
| pyramid schemes | mostly illegal multilevel marketing plans that promise distributors commissions from their own sales and those they recruit |
| pigeon drop | method used by experienced con artists to convince vulnerable people to invest in phony investments, swampland real estate or swindles |
| infomercial | lengthy paid commercial TV ad that includes testimonials, product demos and presentation of features |
| redress | remedy to problem |
