Economics Chapter 3 Review

New Hospital opens, more doctors and nurses living in town, they spend more money

The roles and jobs performed by government:

Market failures occur when economic transactions cause:

Which economic system allows people to start business and make choices?

What is a positive externality?

A local business invests its money in a school, more students stay off the streets & in school

What is a negative externality?

Public transfer payments are used to combat the issue of:

New car factory produces pollution, people get sick

In the American Free Enterprise System who owns the factors of production and private property?

The government puts in a new road, the road is a:

New bar opens in the community, people worry about additional drunk drivers

Goods and services provided by the local, state, or federal government are:

Mary did not pay taxes, yet she is still able to use the public transit train, she is a:

Government money put towards and economic activity for public interest:

What is the job of the government in the Free Enterprise system?

John gets a Social Security disability check, the check is an example of:

Households and business pay _______ in order to get public goods and services

Which of the following is not a public transfer payment?

If an outsider benefits or pays for a marketplace interaction, this is called: