Free Enterprise Study Set

business cycle

following the gdp,there is period the company's production and profit may decline/increase

welfare

given by the government on a temporary basis until you are back on your feet. ex. EBT, disability checks

GDP (Gross Domestic Product)

the total value of goods produced and services provided in a country during one year.

infractructure

to build a country, state, city, county, nation or neighborhood. ( the way we setup/live ) ex. Jackson, Mississippi.

what is the purpose for public disclosure laws?

to provide the consumers intel on the products they are offered

what is the role of the regulatory agencies in our economy?

to provide the government with rules/laws to protect businesses well beings and public health.

externality

a good/service or product that we create for us. ex. streets, medicine.

free rider

a person who receives the benefit of a good but avoids paying for it ex. food stamps. HUD.

explain in an example "eminent domain"

a school on track to being shut down and government has a reason to take the property in exchange to build their building so they pay for the property.

market failure

a situation in which the market does not distribute resources efficiently and fails to adress the basic economic questions.

microeconomics

comparing households on a neighborhood or city with each other ( looking on a small scale )ex. N. Jackson v S. Jackson

public disclosure laws

laws requiring companies to provide full information about their products to protect the safety of the public ex. expiration date

macroeconomics

looking at the total economy of a country compared to other large countries ( looking on a large scale ) ex. USA v France

what is a free enterprise economy?

makes it possible for people(us) to start and function business to make one sucessful.

what is the difference between micro and macro economics?

micro your'e looking at a small scale ( neighborhood v neighborhood ) while macro you look on a larger scale ( country v country )

cash transfer

money given or directly deposited into account or cards to needy families. ex. unemployment benefits .

interest group

people that tries to convince our legislatures to entertain their ideas ( pay bills/pass laws ) ex. PETA AARP

eminent domain

power of a government to take private property for public use.

positive externality

something that is helful, beneficial to the user ( has a good effect ) ex. medicine prescribed makes you feel better

negatice externality

something that is not helpful, to the user ( has a negative effect ) ex. overdosing from medicine.

referendum

the ability for voter to vote down/up laws passed by your legislatures ( we have a say so and the opportunity to. )