Chapter 3 Economics Vocabulary

6. Lowest legal wage that can be paid to most workers
8. An economic system in which private owned businesses have freedom to operate for a profit with limited government intervention
9. Difference between the revenue from sales and the full opportunity cost of resources involved in production sales
10. Income that does not increase over time
11. Driving force that encourages people and organizations to improve their material well-being; characteristic of capitalism and free enterprise
12. Severe economic downturn that lasted from laye 2007 through mid-2009
14. Rise of general level of prices
16. Free enterprise economy where people carry on their economic affairs freely, but are subjected to some government intervention and regulation

1. Role of consumer as a ruler of the types of goods and services produced
2. Fundamental feature of Capitalism, which allows individuals to own and control their possessions as they wish; includes both tangible and intangible property
3. Economic system that has some combination of traditional, command, and market economies
4. Act of buyers and sellers freely and willingly engaging in market transactions; a characteristic of capitalism and free enterprise
5. Fuel made from wood, peat, municipal solid waste. straw, corn, tires, landfill gases, fish oils, and other waste
6. Federal health insurance program for senior citizens, regardless of income
7. The struggle among sellers to attract consumers
13. Federal program of disability and retirement benefits that covers most working people
15. Risk-taking individual in search of profits, one of the four factors of production