ECON Chapter 3 Terms

The driving force behind people going into business is

• profit margin
• profit motive
• opportunity cost
• taxes

This is the social & political commitment & freedom to start their own businesses & compete

• free enterprise system
• free response system
• free travel system
• freedom of choice

This concept insures that everyone can compete in the marketplace by opening a business:

• profit incentive
• legal equality
• open opportunity
• open market

The concept of giving everyone the same legal rights, equal protections & due process of law.

• profit incentive
• legal equality
• open opportunity
• open market

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

• legal equality
• open opportunity
• private property
• profit incentive

The concept that people may decide what and when they want to buy and sell goods & services

• voluntary exchange
• legal equality
• private property
• open opportunity

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

• voluntary exchange
• competition
• incentives
• legal equality

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

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

The driving force behind people going into business is

• profit margin
• profit motive
• opportunity cost
• taxes

This concept insures that everyone can compete in the marketplace by opening a business:

• profit incentive
• legal equality
• open opportunity
• open market