A.P. Gov. Ch. 2 Sec. 3 – Flashcards
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free enterprise
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capitalistic economy in which competition is allowed to flourigh with a minimum of government interference
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voluntary exchange
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act of buyers and sellers freely and willingly engaging in market transactions
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private property rights
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fundamental feature of capitalism that allows individuals to own and control their possesions as they wish
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profit
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extent to which persons or organizations are better off financially at the end of a period than they were at the beginning
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profit motive
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incentive that encourages people and organizations to improve their financial and material well-being
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competition
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the struggle among sellers to attract consumers
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consumer sovereignty
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role of consumer as ruler of the market when determining the types of goods and serives produced
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mixed or modified free enterprised economy
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economy where people carry on their economic affairs freely but are subject to some government intervention and regulation
