Civics: U8 L6

actions, awards or rewards that influence the choices people make

• market economy
• voluntary exchange
• incentives
• competition

when businesses sell the same good or service

• private property rights
• competition
• demand
• supply

the amount of a product or service that is available for consumers to buy

• demand
• supply
• incentives
• producer

buyers are free to buy what they want and sellers are free to sell what they want

• demand
• consumer sovereignty
• consumer
• voluntary exchange

almost everything is owned by individuals or private businesses, not by the government

• private property rights
• consumer sovereignty
• incentives
• market economy

someone who makes goods or provides services

• producer
• consumer
• supply
• demand

the consumer is king

• private property rights
• market economy
• consumer sovereignty
• specialization

a consumer's willingness and ability to purchase a good or service

• supply
• producer
• demand
• incentive

someone who buys goods or services

• producer
• private property rights
• demand
• consumer

When a major car company lowers its prices, other car makers will probably

• maintain existing prices
• lower their prices
• go out of business
• raise their prices