This incentive improves productivity, rewards innovation and encourages

moderate risk taking

Profit Motive

This requires companies to give consumers important information

about the products or services they offer

Public Disclosure Laws

The business cycle illustrates fluctuations in this economic

indicator

GDP(gross domestic product)

This figure is evidence of a healthy economy when it falls between 4

percent to 6 percent

Unemployment Rate

The study of a nation’s economic behavior

Macroeconomics

Government promotes economic strength when it allows citizens

to participate in law making through this method.

referendum

Henry Ford is credited with introducing this method of mass

production.

Assembly line

By tracking where the country is in the business cycle economists

are able to do this.

Make predictions

In order to maintain confidence in the economy, the government takes this measure to make sure milk products are available to all.

Price controls(Regulating financial institutions is the other way government makes

sure the economy is stable and secure.)

This legislation led to the creation of universities for the

mechanical arts and agriculture

The Morill Acts of 1862 and 1890

Even though innovation leads to the growth of the economy, it can also

lead to some workers being replaced with new technology. This

situation is called………..

obsolescence

This is provided by the public sector when the benefit to each individual is less than the cost each would have to pay for it.

Public Good(Also, the total benefit to society is greater than the cost to society)

The basic facilities that are necessary for a society to function

infrastructure

Even though I don’t have to pay for police protection when I visit the

city of Chicago, they have to provide me with the same protection they

provide to their own citizens. What am I?

Free rider

That noisy low flying jet we heard yesterday during school is

an example of what?

A negative externality

Food stamps, subsidized housing, and free legal

assistance are examples of this type of good/service.

In-kind benefit

George W. Bush established this in order to provide federal funds

to religious organizations that provide social services

Office of Faith-Based and Community Initiatives

In order to maximize human potential, our government, through

organizations like the EEOC, prohibits discrimination in the work

place. What principle of a free market economy does this

illustrate?

Legal equality

The principle that allows people to enter into agreements with

each other without government interference is called this.

Free contract

This principle of free enterprise involves individuals and firms

answering the three key economic questions.

Voluntary exchange

This results in different degrees of success in a free market economy

Open opportunity

This part of the constitution ensures just compensation when

government takes private property for public use.

Fifth Amendment

This amendment requires state governments to adhere to the fifth

amendment principle of just compensation for taking private

property for public use.

The Fourteenth Amendment

To promote economic growth in the private sector, the government can

either cut taxes or what?

Increase spending

A situation where the free market system cannot make sure that all

who benefit, pay for a good or service, requiring that the

government provide it.

Market failure