Question

Match each term with the correct definition.

Answer 1

Answer:

1. Market.

2. Private property.

3. Competition.

4. Freedom of enterprise.

5. Self-interest.

6. Mutually agreeable.

7. Freedom of choice.

Explanation:

A. Market: An institution that brings buyers and sellers together.

B. Private property: the right of private persons and firms to obtain, control, employ, dispose of, and bequeath land, capital, and other property.

C. Competition: The presence in a market of independent buyers and sellers who compete with one another and who are free to enter and exit the market as they each see fit.

D. Freedom of enterprise: The freedom of firms to obtain economic resources, decide what products to produce with those resources, and sell those products in markets of their choice.

E. Self-interest: What each individual or firm believes is best for itself and seeks to obtain.

F. Mutually agreeable: Economic transactions willingly undertaken by both the buyer and the seller because each feels that the transaction will make him or her better off.

G. Freedom of choice: The freedom of resource owners to dispose of their resources as they think best; of workers to enter any line of work for which they are qualified; and of consumers to spend their incomes in whatever way they feel is most appropriate.