| A | B |
|---|
| 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 there are a large number of sellers producing identical products. |
