1. Chapter 3 Vocabulary Quiz Review Economics

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

3. # 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

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

5. 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

6. # 5 This recognizes the role individual people as ruler of the market. The phrase “the customer is always right” reflects this power.
Consumer Sovereignty

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

8. # 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

9. # 8 The lowest legal wage that can be paid to most workers.
Minimum Wage

10. # 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

11. # 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

12. # 11 This does not increase over time, even though prices do.
Fixed Income

13. # 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

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

15. #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

16. # 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

17. #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