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Free Enterprise Lecture
Free Enterprise Lecture
17
Economics
12th Grade
03/02/2009

Additional Economics Flashcards

 


 

Cards

Term
Employment
Definition
select occupation, employer and location
Term
Consumer
Definition
select products and prices
Term
Businesses/Enterprise
Definition
a) select type and products to produce
b) hire and fire employees
Term
Voluntary Exchange
Definition

buyers and sellers freely engage in market transactions

 

both parties are better off after transaction

Term
Private Property
Definition
the right to control their possessions as they wish
Term
2 types of private property
Definition

tangible (land)

intangible (skills)

Term
private property characteristics
Definition
provides for incentives to work, save and invest to be productive
Term
Profit Motive
Definition
1) driving force that encourages people to improve material well being
2) responsible for growth of free enterprise
3) consumer and business profit from exchanges.
Term
define competition
Definition
many producers producing similar products at different prices
Term
advantages of competition
Definition
a) lower prices
b) more variety
c) better products
d) more information to consumer
Term
entrepreneur characteristics
Definition

organizes and manages land, labor and capital to seek profit

 

1 in 5 businesses will survive past 5 years

Term
benefits of entrepreneurs
Definition
- profit and growing business
- provides jobs
- new and better products
- tax revenue for govt.
- generates interest in an industry which will benefit through competition
Term
sovereignty
Definition
1) consumer as sovereign of the market place
2) determines products to be produced and has some control over price
3) determines change in market place for new items
Term
protector
Definition
protects property rights, enforces contracts and regulates fairness in the market place
Term
provider and consumer
Definition

provides services and products for public use

 

purchases goods and services from businesses

Term
regulator
Definition
1) preservation of competition
2) regulates interstate commerce, communications and industries
Term
promotes national goals
Definition
modifies economic system to achieve economic goals of freedom, efficienty, equity, security, employment, price stability and economic growth.
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