Chapter+3+HW

__ ** Chapter 3.1 Notes ** __ __**Key Terms**__ Profit Motive : the force that encourages people and organizations to improve th e ir material well-being Open Opportunity : the concept that everyone can compete in the market place Legal Equality : the concept of giving everyone the same legal rights Private Property Rights : the concept that people have the right and privilege to control their possessions as they wish Free Contract : the concept that people may decide what agreements that want to enter into Voluntary Exchange : the concept that people may decide what and when they want to buy and sell Competition : the rivalry among sellers to attract customers while lowering costs Interest Group : a private organization that ties to persuade public officials to act or vote according to group members' interests Public Disclosure Laws : laws requiring companies to provide full information about their products Public Interest : the concerns of the public as a whole

**Chapter 3.2 Notes** __**Key Terms**__ Macroeconomics : the study of the behavior and decision making of entire economics Microeconomics : the study of the economic behavior and decision making a small units, such as individuals, families, and business Gross Domestic Product : the total value of all final goods and services produced in a particular economy Business Cycle : a period of macroeconomic expansion followed by a period of contraction Work Ethic : a commitment to the value of work and purposeful activity Technology : the process used to produce a god or service

__**Key Terms**__ 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 business 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 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 : a economic side affect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume
 * Chapter 3.3 Notes**

__**Key Terms**__ Poverty Threshold : an income level below that which is needed to support families or household Welfare : government aid to the poor Cash Transfers : direct payments of money to eligible poor people In-Kind Benefits : goods and services provided for free or at greatly reduced prices
 * Chapter 3.4**