wcs/chapter3
Terms
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- free rider
- someone who would not choose to pay for a certain good or service, but who would get the benefits of it anyway if it were provided as a public good
- in-kind benefits
- goods and services provided for free or at greatly reduced prices
- externality
- an economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume
- welfare
- government aid to the poor
- competition
- the rivalry among sellers to attract customers while lowering cost
- cash transfers
- direct payments of money to eligible poor people
- legal equality
- the concept of giving everyone the same legal rights
- public disclosure laws
- laws requiring companies to provide full information about their products
- proverty threshold
- an income level below that which is needed to support families or households
- public sector
- the part of the economy that involves the transactions of the government
- technology
- the process used to produce a good or service
- public interest
- the concerns of the public as a whole
- work ethic
- a commitment to the value of work and purposeful activity
- open opportunity
- the concept that everyone can compete in the marketplace
- profit motive
- the force that encourages people and organizations to improve their material well-being
- private property rights
- the concepts that people have the right and privilege to control their possessions as they wish
- market failure
- a situation in which the market does not distribute resources efficiently
- gross domestic product (GDP
- the total value of all final goods and services produced in a particular economy
- business cycle
- a period of macroeconomic expansion followed by a period of contraction
- private sector
- the part of the economy that involves the transactions of individuals and businesses
- microeconomics
- the study of the economic behavior and decision making of small units, such as individuals , families businesses
- interest group
- a private organization that tries to persuade public officials to act or vote according to group members' interests
- macroeconomics
- the study of the behavior and decision making of entire economics