Profit motive
when financial gain is an incentive for economic activity
Consumer sovereignty
determines what produces will produce based on whether the consumer will buy it
Private ownership
owned by an individual or organization rather than the government
competition
when businesses try to get consumers to purchase their goods over another company's goods
Government Regulation
the extent to which the government has control over economic decisions made by consumers and/or producers
Freedom
how much ability the members or society have to make economic decisions
Security
has to do with protecting individuals and businesses from risk
Growth
increasing production of goods and services over time
Equity
fairness within the economy in regard to taxation, welfare and availability of resources
Efficiency
when factors or production are allocated to their most productive use
price stability
the general price level in an economy does not change much over time
full employment
seeks to ensure that all those who are willing and able to work have the opportunity to do so
Sustainability
refers to the goal of individual countries to maintain an upward trend of GDP
Public Goods
an item whose consumption is not divided by the individuals consumer but by the society as a whole, which if financed through taxation
income redistribution
Taking tax money from one group of individuals or firms and giving it to other individuals and firms
Market failures
Occur when the private market is unable to produce goods and services in a way that benefits the whole society
Government Deregulation
process of removing or reducing regulations
Productivity
relationship between inputs and outputs
Inputs
something that goes into making a good or service
outputs
amount of good or service being produced
standard or living
refers to the material well-being people in an economy enjoy