Chapter 3 Vocabulary Quiz Review Economics

# 1. A federal program of disability and retirement # 1 A federal program of disability and retirement benefits that covers most working people. Social Security

# 2. The energy for these is derived from renewable # 2 The energy for these is derived from renewable plant and animal materials, vegetable oils, and municipal and industrial wastes.  Biofuels

# 3. This started in December of 2007 and lasted until. mid-2009 # 3 This started in December of 2007 and lasted until mid-2009. During this 18-month period, the nation’s Gross Domestic Product actually shrank about 4.5 to 5 percent! Great Recession

Mixed Economy or Modified Free Enterprise Economy # 4 Here people and businesses carry on their economic affairs freely, but they are subject to some government intervention and regulation. Mixed Economy or Modified Free Enterprise Economy

# 5 This recognizes the role individual people as ruler of the market. The phrase “the customer is always right” reflects this power. Consumer Sovereignty

# 6. A federal health insurance program for senior # 6 A federal health insurance program for senior citizens, regardless of income. Medicare

# 7. Resources are privately owned, and competition is # 7 Resources are privately owned, and competition is allowed to flourish with a minimum of government interference. Free Enterprise

# 8 The lowest legal wage that can be paid to most workers. Minimum Wage

# 9. The struggle among sellers to attract consumers # 9 The struggle among sellers to attract consumers with the best products at the lowest prices.  Competition

# 10. The act of buyers and sellers freely and # 10 The act of buyers and sellers freely and willingly engaging in market transactions. Voluntary Exchange

# 11 This does not increase over time, even though prices do. Fixed Income

# 12. The person who organizes and manages the # 12 The person who organizes and manages the land, capital, and labor in order to seek the reward called profit. Entrepreneurs

Private Property Rights # 13 These allow people to own and control their possessions as they wish. Private Property Rights

#14. The extent to which revenue from sales exceeds #14 The extent to which revenue from sales exceeds the full opportunity cost of the resources involved in producing the products sold.  Profit

# 15. A rise in the general level of prices occurs, # 15 A rise in the general level of prices occurs, workers need more money to pay for food, clothing, and shelter. Inflation

#16. The incentive to improve material well-being is #16 The incentive to improve material well-being is largely responsible for the growth of a free enterprise system. Profit Motive