Free Enterprise

This is another name for capitalism

• Free Contract

• Free Enterprise

• Infrastructure

• Legal Equality

What is the name of the force that encourages people and organizations to improve their material well-being from economic activities?

• Market Failure

• Profit Motive

• Positive Externality

• Free Rider

What occurs when people who do not take part within an economic transaction benefit from it?

• Negative Externality

• A Modified Free Enterprise Comes into Play

• Market Failure

• Wellfare is revoked

What is a subsidy?

• A government payment that helps cover the cost of an economic activity

• A payment in which the government transfers income from taxpayers to recipients who do not provide anything in return

• A product that is provided by a federal, state, and/or a local government and consumed by the public

• A government program designed to protect people from economic hardships

What is an example of a negative externality?

• Fewer Oil Rigs

• Industrial Pollution

• Less Toxic Waste

• Smaller buildings

A system to protect people experiencing unfavorable economic conditions

• innovation

• standard of living

• safety net

• profit

An economic goal where a system makes the most of scarce resources using resources wisely and productively

• Economic Freedom

• Economic Equity

• Economic Efficiency

• Economic Growth

Which is NOT an example of a public good?

• police, fire, and ambulance services

• an amusement park like Cedar Point

• public parks, sidewalks, roads

• schools and libraries

The goal of government welfare programs is to

• maintain a poverty threshold that matches the median income.

• eliminate the dependence of people on the welfare system.

• eliminate the income gap between the richest Americans and the poorest.

• raise the standard of living of certain less-fortunate members of society.

The ability to decide for yourself which legal agreements you will enter into is called

• a. profit motive

• b. open opportunity

• c. legal equality

• d. free contract