Bodamer Economics Chapter 3

The concept that people may decide what agreements they want to enter into.

• Free Contract

• Free Rider

• Open Opportunity

• Private Sector

The rivalry among sellers to attract customers while lowering costs.

• Competition

• Profit Motive

• Open Opportunity

• Free Contract

The study of the behavior and decision making of entire economies.

• Macroeconomics

• Microeconomics

• Business Cycle

• Public Interest

The part of the economy that involves the transactions of the government.

• Public Sector

• Free Rider

• Private Sector

• Public Interest

An income level below that which is needed to support families.

• Poverty Threshold

• Welfare

• Gross Domestic Product

• Competition

Government aid to the poor.

• Welfare

• Poverty Threshold

• Free Rider

• Profit Motive

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

• Profit Motive

• Competition

• Private Sector

• Public Interest

The concept that everyone can compete in the marketplace.

• Open Opportunity

• Free Contract

• Competition

• Voluntary Exchange

The study of the economic behavior and decision making of small units.

• Microeconomics

• Macroeconomics

• Welfare

• Business Cycle

The total value of all final goods and services produced in a particular economy.

• Gross Domestic Product

• Microeconomics

• Macroeconomics

• Free Rider