Econ Chapters 1-3

A side effect of a transaction that affects someone other than the producer or the buyer.

The incentive that gives people the push to improve their material well being.

A gov. payment that helps cover the cost of an economic activity in the public interest.

Limited number of resources as opposed to an unlimited number of wants.

Giving up one thing so you can gain more of another 

The principle that states that the government should not interfere with the free market.

Which of these is NOT considered public infrastructure?

When a buyer and seller agree to do business with one another.

The following graphic is an example of what?

The society’s leaders, usually members of the government, make all economic decisions.

Change from private ownership to government or public ownership

The rights of individuals and/or groups to own their own property.

All the economic interactions that cross international boundaries. 

The following graph is an example of a 

Physical objects that can be purchased -- food, clothing,electronics, automobiles, etc. 

Is a person who chooses not to pay for a good or service but benefits from when its provided. 

Government programs designed to ensure economic equity and security

Includes government protections/provisions/regulations to adjust the capitalist system. 

Everyone has the same economic rights under the law and has equal opportunity to succeed

Which of these is NOT a factor of production?

Economic system that is usually paired with Laissez Faire principles