This incentive improves productivity, rewards innovation and encourages
moderate risk taking
Profit Motive
This requires companies to give consumers important information
about the products or services they offer
Public Disclosure Laws
The business cycle illustrates fluctuations in this economic
indicator
GDP(gross domestic product)
This figure is evidence of a healthy economy when it falls between 4
percent to 6 percent
Unemployment Rate
The study of a nation’s economic behavior
Macroeconomics
Government promotes economic strength when it allows citizens
to participate in law making through this method.
referendum
Henry Ford is credited with introducing this method of mass
production.
Assembly line
By tracking where the country is in the business cycle economists
are able to do this.
Make predictions
In order to maintain confidence in the economy, the government takes this measure to make sure milk products are available to all.
Price controls(Regulating financial institutions is the other way government makes
sure the economy is stable and secure.)
This legislation led to the creation of universities for the
mechanical arts and agriculture
The Morill Acts of 1862 and 1890
Even though innovation leads to the growth of the economy, it can also
lead to some workers being replaced with new technology. This
situation is called………..
obsolescence
This is provided by the public sector when the benefit to each individual is less than the cost each would have to pay for it.
Public Good(Also, the total benefit to society is greater than the cost to society)
The basic facilities that are necessary for a society to function
infrastructure
Even though I don’t have to pay for police protection when I visit the
city of Chicago, they have to provide me with the same protection they
provide to their own citizens. What am I?
Free rider
That noisy low flying jet we heard yesterday during school is
an example of what?
A negative externality
Food stamps, subsidized housing, and free legal
assistance are examples of this type of good/service.
In-kind benefit
George W. Bush established this in order to provide federal funds
to religious organizations that provide social services
Office of Faith-Based and Community Initiatives
In order to maximize human potential, our government, through
organizations like the EEOC, prohibits discrimination in the work
place. What principle of a free market economy does this
illustrate?
Legal equality
The principle that allows people to enter into agreements with
each other without government interference is called this.
Free contract
This principle of free enterprise involves individuals and firms
answering the three key economic questions.
Voluntary exchange
This results in different degrees of success in a free market economy
Open opportunity
This part of the constitution ensures just compensation when
government takes private property for public use.
Fifth Amendment
This amendment requires state governments to adhere to the fifth
amendment principle of just compensation for taking private
property for public use.
The Fourteenth Amendment
To promote economic growth in the private sector, the government can
either cut taxes or what?
Increase spending
A situation where the free market system cannot make sure that all
who benefit, pay for a good or service, requiring that the
government provide it.
Market failure