| A | B |
|---|
| Profit Motive | The force that encourages people and organizations to improve their material well-being |
| Private property rights | The concept that people have the right and privilege to control their possessions as they wish |
| 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 officials 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 economics |
| Microeconomics | The study of the economic behavior and decision making of small units, such as individuals, familes, and businesses |
| Gross domestic product (GDP) | The total value of all final goods and services produced in a particualar economy |
| Business cycle | A period of macroeconomic expansion followed by a period of contraction |
| 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 goverment |
| Private sector | The part of the economy that involves 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 benifits of it anyway if it were provided as a public good |
| Market failure | A situation in which the market does not distribute resources efficiently |
| Externality | An economic side effect of a good or service that generates benifits or costs to someone other that the person deciding how much to produce or consume |
