Questions and Answers
What is the incentive that drives individuals and business owners to improve their material well-being?
profit motive
What principle allows anyone to compete in the marketplace?
open opportunity
What principle states that everyone has the same legal rights?
legal equality
What principle grants individuals the right to control their possessions?
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What principle gives people the freedom to decide what agreements they want to enter into?
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What principle allows people to decide what, when, and how they want to buy and sell?
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What is a private organization that tries to persuade public officials to act in ways that benefit its members?
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What term describes the love of one's country?
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What is the right of a government to take private property for public use?
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What term refers to the concerns of society as a whole?
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What laws require companies to provide information about their products or services?
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What is the study of economic behavior and decisions in a nation's whole economy called?
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What is the study of economic behavior and decision-making in small units called?
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What term describes the dollar value of all final goods and services produced within a country's borders in a given year?
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What term describes a period of macroeconomic expansion followed by one of contraction?
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What is a proposed law submitted directly to the public called?
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What term describes a situation in which older products and processes become out-of-date?
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What is a license that gives the inventor of a new product the exclusive right to sell it for a specific period of time?
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What government document protects an author's exclusive rights to publish and sell creative works?
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What term describes a commitment to the value of work?
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What is a shared good or service where it would be impractical to make consumers pay individually?
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What part of the economy involves the transactions of the government?
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What term refers to the basic facilities necessary for a society to function and grow?
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What term describes someone who benefits from a public good without being willing to pay for it?
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What situation occurs when the free market does not distribute resources efficiently?
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What term refers to an economic side effect that generates benefits or costs to someone other than the person making the decision?
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What is the income level below that which is needed to support families called?
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What is government aid to the poor called?
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What are the direct payments of money by the government to poor, disabled, and retired people called?
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What are goods and services provided for free or at greatly reduced prices called?
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What financial award is given by a government agency to a private individual or group to carry out a specific task?
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The 5th and 6th amendments give you ____.
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Which organization regulates trade through states, allowing for no extra shipping charges?
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Which organization regulates drug use and safety, approving and disapproving medications and drugs?
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Which organization looks at kitchens and food safety policies?
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Which organization protects nature and natural resources?
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What private group handles the money for the country and isn't connected to the government?
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What are the 4 key principles of the free enterprise system?
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How does the Constitution protect the free enterprise system?
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What economic system is characterized by private or corporate ownership of capital goods?
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What is considered a negative effect of government regulation?
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What type of economics focuses on household credit card debt?
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Who decides what is produced in the economy?
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What is one way the government might try to promote economic growth?
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What is one way new technology helps the United States improve its standard of living?
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What is the number of unincorporated businesses?
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What is one key feature of public goods?
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Why are public goods examples of market failure?
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What is a positive externality of a new high school?
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How could the government limit negative externalities of a highway?
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The government tries to provide a ____ to help people who fall into poverty.
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The goal of Temporary Assistance for Needy Families is to get people off ____ and into the ____.
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What are the government's three goals for promoting economic strength?
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____ insurance provides temporary help to workers who have lost their jobs.
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____ benefits include food giveaways, ____ stamps, subsidized ____, and legal aid.
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Federal law reduces taxes on ____ to charity.
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The government gives ____ to organizations that provide social services.
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People below the poverty ____ cannot support themselves.
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The government tries to fight poverty by providing ____.
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What does the 16th amendment do?
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Who does C.H.I.P. provide benefits for?
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What type of insurance is for the elderly?
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What type of insurance is for those who can't afford it?
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Most of the people who receive ____ benefits from the government are retired.
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What act involved the government giving away land to build universities?
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What part of the economy involves individuals and businesses?
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What is economic patriotism also known as?
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How does the country pay for its public goods?
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When was the Bill Clinton law passed that established personal welfare?
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Study Notes
Economic Principles and Concepts
- Profit Motive: The incentive driving individuals and businesses to enhance their financial well-being; a primary reason for profit-making.
- Open Opportunity: Ensures that anyone can engage in market competition.
- Legal Equality: Guarantees that every individual has the same legal rights in economic transactions.
- Private Property Rights: Individuals can own and control possessions as they wish.
- Free Contract: Allows individuals the freedom to choose their agreements and contracts.
- Voluntary Exchange: Enables people to decide freely what, when, and how to buy or sell goods and services.
Economic Systems and Government Roles
- Interest Group: A private organization that influences government officials to enact favorable policies for its members.
- Public Interest: Reflects the broader concerns of society as a whole.
- Public Disclosure Laws: Mandate companies to disclose pertinent information about their products or services.
- Macroeconomics: The study of economic behavior and decision-making at a national level.
- Microeconomics: Focuses on smaller units, such as households and firms.
- Gross Domestic Product (GDP): Measures the total dollar value of all final goods and services produced within a nation's borders in a year.
Economic Cycles and Terminology
- Business Cycle: The alternating periods of economic growth and contraction.
- Obsolescence: When older products become outdated, prompting consumers to purchase newer options.
- Eminent Domain: The government's right to seize private property for public use.
- Market Failure: Occurs when the free market fails to allocate resources efficiently.
Welfare and Poverty Measures
- Poverty Threshold: The minimum income needed to support families and households.
- Welfare: Government assistance programs aimed at aiding the poor.
- In-Kind Benefits: Goods and services provided at reduced costs or for free.
- Cash Transfers: Direct payments from the government to individuals in need.
Government Regulation and Economic Aid
- Federal Trade Commission (FTC): Regulates trade across state lines to prevent economic barriers.
- Food and Drug Administration (FDA): Oversees drug safety, approving or denying medications.
- Environmental Protection Agency (EPA): Protects natural resources and enforces regulations on environmental safety.
- Federal Reserve System: A private entity managing the nation’s monetary policy.
Economic Growth and Standards of Living
- Safety Net: Government programs designed to assist individuals falling into poverty.
- Temporary Assistance for Needy Families (TANF): Aims to transition individuals from welfare to the workforce.
- Economic Goals: High employment, steady growth, and stability are fundamental objectives of governmental economic policies.
Specific Programs and Benefits
- Medicare: Provides insurance for the elderly.
- Medicaid: Offers health insurance for low-income individuals.
- C.H.I.P.: Health coverage specifically for children.
- Social Security: Primarily benefits retired individuals.
Additional Key Points
- Public Goods: Shared goods that are inefficiently provided via individual payment systems.
- Free Rider Problem: Individuals benefiting from a public good without contributing.
- Grants: Financial support from the government for specific tasks carried out by organizations.
- Economic Freedom: Also known as economic patriotism; reflects the right to make economic choices.
Amendments and Legal Framework
- 16th Amendment: Imposes federal income taxes on citizens.
- Due Process: Guarantee provided by the 5th and 6th amendments for fair legal proceedings.
Historical Context
- Morrill Act: A legislation giving land to establish universities, reflecting early government support for education.
Key Figures
- Approximately 22 million unincorporated businesses in the economy.
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Description
Test your understanding of key economic principles such as profit motive, legal equality, and private property rights. This quiz will challenge your knowledge of how these concepts influence market dynamics and government roles in economics.
