Economics Chapter 3

These are people who start new businesses to seek profits.

• consumers

• entrepreneurs

• modified free enterprisers

This is the rise in the general level of prices.

• fixed income

• inflation

This the lowest legal wage that can be paid to most workers.

• inflation

• minimum wage

• social security

Income that does not increase over time.

• fixed income

• adjustable income

• medicaid

Federal program of disability and retirement benefits that covers most working people.

• inflationary income

• fixed income allowance

• Social Security

Characteristics of free enterprise capitalism include voluntary exchange, private property and these two.

• competition & profit motive

• competition & involuntary exchange

• profit motive & opportunity cost

Rivalry between sellers is best known as

• Profit motive

• Competition

• Freedom to choose

The goal of every business is motivated by

• revenue

• profit

• competition

Economic action done or brought about by free choice

• mixed economy

• ba-bam!!!!

• voluntary exchange

Economic system with a combination of command, traditional, and market economies

• mixed economy

• competition

• profit motive