Econ Ch 3.1/3.2 Vocabulary

An economic system based on private ownership of resources

• Free Enterprise

• Capitalization

• Privatize

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

• voluntary exchange

• economic freedom

• open opportunity

Everyone has the same economic rights under the law

• Economic Freedom

• Economic Equality

• Legal Equality

People decide which legal agreements to enter into or not.

• Economic Freedom

• Free Contract

• Contract Freedom

The force that encourages others to improve their material well being through economic activities.

• motive profit

• profit reward

• profit motive

Money left over after the cost have been subtracted from the revenue gained by selling

• Profit

• Profit Motive

• Income

Economic system with government involvement

• Mixed Economy

• Centrally Planned Economy

• Modified Free Enterprise Economy