| A | B |
|---|
| profit motive | the force that encourages people and organizations to improve their material well-being |
| open opportunity | the concept that everyone can compete in the marketplace |
| legal equality | the concept of giving everyone the same legal rights |
| private property rights | the concept that people have the right and privilege to control their possessions as they wish |
| free contract | the concept that people may decide what agreements they want to enter into |
| voluntary exchange | the concept that people may decide what and when they want to buy and sell |
| competition | the rivalry among sellers to attract customers while lowering costs |
| interest group | a private organization that tries to persuade public oficials to act or vote according to 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 economies |
| microeconomics | the study of the economic behavior and decision making of small units, such as individuals, families, and businesses |
| gross domestic product (GDP) | 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 | a commitment to the value of work and pursposeful activity |
| technology | the 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 government |
| private sector | the part of the economy that involved the transactions of individuals and businesses |
| free rider | someone who would not choose to pay for a certain good or service, but who would get the benefits of it anyway if it were provided as a public good |
| market failure | a situation in which the market does not distribute resources efficiently |
| externalitiy | 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 | government aid to the poor |
| cash transfers | direct payments of many to elegible poor people |
