Econ Ch 3 Test

Why is America’s version of Capitalism different from a free market economy?

What does the government play a role to protect in the American Free Enterprise System?

Infrastructure is funded mostly by _____________________________________.

What ensures everyone has the same legal right to succeed or fail in the marketplace?

The government will intervene to protect businesses and _______________.

Infrastructure would be items like sewers, water, and _____________ designed to make life smoother.

What allows everyone the right to fairly participate in a free enterprise economy?

How does the government play a role as a consumer?

What is money distributed to individuals who do not provide goods or services in return?

A competing restaurant closing one block away would be an example of what?

What type of system is based on private ownership of factors of production?

What ensures that the market will reflect a wide range of interests?

Who must hold competition to certain standards in a Capitalist System?

What must the government attempt to control in the economy? (According to Economists.)

What is the technical term for the U.S. economy?

What is an example of a public transfer payment?

When are safety nets utilized?

What do you call government programs designed to protect people from economic hardship?

What must people be able to do within a free enterprise economy?

Incentive that encourages people and org's to improve their material well-being by trying to gain from economic activity

What are people not allowed to be excluded from? (Value must not diminish with use.)

What is the basic set of support systems-power, comm, transportation-needed to keep an economy and society going strong?

What is a government transfer of income from taxpayers to recipients who do not provide anything in return?

What is a government payment that helps cover the cost of an economic activity that can benefit the public as a whole?

What is a side effect of a transaction that affects someone other than the producer or buyer?

In Capitalism, what are producers influenced by?

What is the ability of everyone to enter and compete in the market of his/her free choice?

What are consumers in Capitalism influenced by?

Who is a person that does not pay for a good or service but enjoys the benefits of it?

What is the situation in which people who are not part of a marketplace interaction benefit from it or pay for it?

What is the situation in which everyone has the same economic rights under the law?

What are goods and services provided by the government and consumed by the public as a group?

A subsidy is a _____________ to help cover the cost of economic activity of people’s interest, and is meant to improve q

Producers must follow guidelines for _____________ yet will sell what consumers want to buy.

How does the government play a role as a producer?

What do consumers like that helps keep prices down and quality up?

A Capitalist System is also known as a ____________________________.

Which area does the U.S. typically allocate most of the money in public transfer payments?

What are designed most often for old/retired, unemployed, or disabled citizens?

Who is driven mainly by profit?