Chapter 3 Vocabulary Worksheet
1. Profit motive
2. Private property rights
3. Voluntary exchange
4. Competition
5. Macroeconomics
6. Microeconomics
7. Gross domestic product
8. Business cycle
9. Market failure
10. Externality
11. Poverty threshold
12. Welfare
A. Government aid to the poor
B. The rivalry among sellers to attract customers while lowering costs.
C. A period of macroeconomic expansion followed by a period of contraction.
D. The study of behavior and decision making of entire economies.
E. The force that encourages people and organizations to improve their material well-being.
F. An income level below that which is needed to support families or households.
G. The concept that people have the right and privilege to control their possessions as they wish.
H. The total value of all goods and services produced in an economy.
I. The study of the economic behavior and decision making of small units, such as individuals, families, and businesses.
J. The concept that people may decide what and when they want to buy and sell.
K. An economic side effect of a good or service.
L. A situation in which the market does not distribute resources efficiently.
1. Profit motive
2. Private property rights
3. Voluntary exchange
4. Competition
5. Macroeconomics
6. Microeconomics
7. Gross domestic product
8. Business cycle
9. Market failure
10. Externality
11. Poverty threshold
12. Welfare
A. Government aid to the poor
B. The rivalry among sellers to attract customers while lowering costs.
C. A period of macroeconomic expansion followed by a period of contraction.
D. The study of behavior and decision making of entire economies.
E. The force that encourages people and organizations to improve their material well-being.
F. An income level below that which is needed to support families or households.
G. The concept that people have the right and privilege to control their possessions as they wish.
H. The total value of all goods and services produced in an economy.
I. The study of the economic behavior and decision making of small units, such as individuals, families, and businesses.
J. The concept that people may decide what and when they want to buy and sell.
K. An economic side effect of a good or service.
L. A situation in which the market does not distribute resources efficiently.