Market Economy

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Voluntary exchange

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19 Terms

1

Voluntary exchange

________: when a buyer and seller agree to do business together business together, each believes that the benefits outweigh the costs.

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2

Specialization

________: buyers and sellers are able to concentrate their efforts in areas where they have an advantage.

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3

Consumer sovereignty

________: buyers can exercise their dominance over what is produce by freely deciding whether to buy or not buy.

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4

Legal equality

________: everyone should have the same economic rights under the law.

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5

Competition

________: sellers are free to attempt to get the business of others by offering the best deal.

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6

Profit

________: sellers are free to attempt to maximize their ________.

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7

Government involvement

________: buyers and sellers must be free to operate with minimal government intervention.

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8

Free contact

________: everyone should have the right to decide for themselves which legal economic agreements they want to enter into.

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9

Private property

________: buyers and sellers are free own and use private property.

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10

Private property

buyers and sellers are free own and use private property

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11

Specialization

buyers and sellers are able to concentrate their efforts in areas where they have an advantage

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12

Consumer sovereignty

buyers can exercise their dominance over what is produce by freely deciding whether to buy or not buy

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13

Competition

sellers are free to attempt to get the business of others by offering the best deal

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14

Profit

sellers are free to attempt to maximize their profits

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15

Voluntary exchange

when a buyer and seller agree to do business together business together, each believes that the benefits outweigh the costs

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16

Government involvement

buyers and sellers must be free to operate with minimal government intervention

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17

Open opportunity

everyone should have the ability to enter and compete in any marketplace

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18

Free contact

everyone should have the right to decide for themselves which legal economic agreements they want to enter into

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19

Legal equality

everyone should have the same economic rights under the law

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