Chapter 3 - Economics

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

• voluntary exchange

• legal equality

• profit motive

• business cycle

the concept that everyone can compete in the marketplace

• competition

• free contract

• legal equality

• open opportunity

the concept that people have the right and privilege to control their possessions as they wish

• free contract

• private property rights

• public interest

• externality

the concept of giving everyone the same legal rights

• free rider

• voluntary exchange

• legal equality

• in-kind benefits

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

• free contract

• public interest

• microeconomics

• macroeconomics

the concept that people may decide what and when they want to buy and sell

• competition

• gross domestic product

• voluntary exchange

• public good

the rivalry among sellers to attract customers while lowering costs

• market failure

• interest group

• public interest

• competition

a private organization that tries to persuade public officials to act or vote according to group members' interests

• business cycle

• work ethic

• interest group

• free rider

laws requiring companies to provide full information about their products

• gross domestic product

• work ethic

• business cycle

• public disclosure laws

the concerns of the public as a whole

• free rider

• private sector

• public interest

• public good