Norwood Ch. 3 Free Enterprise System

This is what happens when general prices of goods and services go up.

Person who avoids paying for a good but benefits from that good.

Producers compete with one another to attract consumers, while lowering costs.

Social Security is one example of how Americans have modified their mixed economy.

Said the Gov. most important economic role is to control the amount of money in circulation.

If there are 6 apples and you take away 4, how many do you have?

A farmer has 15 cows. All but 5 of the cows died from a lightening strike. How many survived?

What is profit?

Which is most responsible for the growth of the free enterprise system?

Which is not an example of a public transfer payment?

Situation in which everyone has the same economic rights under the law.

This is an economic system based on private ownership of productive resources.

A squirrel, monkey and parrot race up a coconut tree. Which animal gets the banana first?

The force that encourages people and organizations to improve their material well being.

Which of the following is not a legal right built into the Free enterprise system?

What do some states do to protect workers from events like layoffs and illnesses?

What type of externality would be pollution from a manufacturing company?

The ability of everyone to take part in the market by free choice.

Contracts are legal and binding written agreements

What is an example of a positive externality?

What is added to a modified free enterprise economy?

Side effect of a product that affects someone other than the producer or buyer

In a free enterprise system, people can...

Occurs when people who are not part of a marketplace benefit from it.

This is one way the government spreads positive externalities.