24 terms

Unit 8 Terms ECON

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Terms in this set (...)

contract
an agreement between a buyer and a seller
copyright
a legal protection that gives creator and publishers of books, music, software, and artistic works the sole right to distribute, perform, or display that work
free enterprise system
an economic system in which the workings of the market are not planned or directed
intellectual property
creations of the mind that have commercial value, such as inventions and works of art
laissez-faire
the principle that government should not interfere with the workings of the economy; a French term meaning "let them do"
mixed economy
an economy system in which both the government and individuals play important roles in production and consumption; most modern economies are mixed economies
patent
a legal protection that gives inventors the sole right to make, use, or sell their inventions for a fixed number of years
profit motive
the desire to make profit
property rights
the rights of those who own land, buildings or other goods so use or dispose of the property as they choose
public works
government-financed projects such as dams, highways and bridges
deregulation
the process of removing government restrictions on firms in order to promote competition or encourage economic activity
economic mobility
the ability of people to raise their standard of living and improve their economic status
economic stimulus
a policy or action designed to promote business activity and stimulate economic growth
eminent domain
the power of a government to take an individual's property for public use if the owner is fairly compensated
income redistribution
a policy designed to reduce income inequality by taking money from the rich and distributing it to the poor
means-tested programs
a government benefit that is tied to family income so that benefits are reduced as income rises; ex: food stamps and welfare payments
merger
the combining of two or more separately owned firms into a single firm
poverty rate
the percentage of the population or consumption that falls on someone other than the producer or consumer; a positive side effect
price fixing
an illegal; anticompetitive practice in which two or more firms agree to set a common price for a good or service
regulation
the establishment, by the government, of ruler aimed at influencing the behavior of firms and individuals; regulation can involve setting prices, establishing product and workplace standards, and limiting entry into an industry
regulatory agency
a unit of government created to set and enforce standards for a particular industry or area of economic activity
regulatory capture
a situation in which a regulatory agency is dominated, by the industry it regulates; a captured agency tends to favor the industry it is meant to regulate more than the public interest
Takings Clause
a clause of the Fifth Amendment to the Constitution stating that the government must pay private owners when their property is taken for public use under the power of eminent domain
unemployment insurance
a government program providing limited cash payments to workers who lose their jobs