Economics Chapter 3

An economic system in which businesses compete against one another free of government control

• Socialism
• Free Enterprise
• Product
• Marketing

The driving force behind people going into business is

• profit margin
• profit motive
• opportunity cost
• taxes

The rivalry between sellers to get more customers by lowering costs & better goods/services

• voluntary exchange
• competition
• incentives
• legal equality

This is the study of the behavior/decision making of entire economies, not individuals.

• microeconomics
• macroeconomics
• finite economics
• economic models

A situation where the market does not distribute resources efficiently is

• a private sector problem
• a positive externality
• a negative externality 
• a market failure

A shared good/service that government builds because it would be impractical for an individual 

• private good
• public good
• military good
• market failure

The amount of a good or service that consumers are willing and able to buy at various prices during a given period.

• Demand

• Purchasing Power

• Law of Demand

• Total Revenue

The amount a consumer has to pay to purchase a certain product.

• Price

• Utility

• Demand

• Complementary Good

An economic system in which businesses compete against one another free of government control

• Socialism
• Free Enterprise
• Product
• Marketing

In the marketplace, producers are looking to

• buy goods for personal use

• earn a profit

• find incentives

• find the latest fad