Macro economics chapter 2
Dollar Votes
vote consumers of products place when the buy certain goods tells companies what to make
Freedom of Choice
The freedom of resource owners to dispose of their resources as they think best; of workers to enter any line of work for which they are qualified; and of consumers to spend their incomes in whatever way they feel is most appropriate.
Mutually Agreeable
Economic transactions willingly undertaken by both the buyer and the seller because each feels that the transaction will make him or her better off.
Self interest
Allocating the resources available to you in a way that will benefit you
Consumer Sovereignty
the situation in an economy where the desires and needs of consumers control the output of producers.
Economic System
An economic system is a system of production, resource allocation, exchange, and distribution of goods and services in a society or a given geographic area.
Market
An institution that brings buyers and sellers together.
Competition
The presence in a market of independent buyers and sellers who compete with one another and who are free to enter and exit the market as they each see fit.
private property
The right of private persons and firms to obtain, control, employ, dispose of, and bequeath land, capital, and other property.
Freedom of Enterprise
The freedom of firms to obtain economic resources, decide what products to produce with those resources, and sell those products in markets of their choice.
