Voluntary exchange
the concept that people may decide what and when they want to buy and sell
Macroeconomics
the study of the behavior and decision making of entire economies
Microeconomics
the study of the economic behavior and decision making of small units, such as individuals, families, and businesses
Public Good
a shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers
Public Sector
the part of the economy that involves the transactions of the government
Private Sector
the part of the economy that involves the transactions of individuals and businesses
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
Market Failure
a situation in which the market does not distribute resources efficiently
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
patent
a license that gives an inventor exclusive right to sell a product for 20 years
copyright
exclusive rights of an author to publish and sell his/her work