Part 1: Key Terms-Match the concept with the letter that corresponds to the correct definition.

1. Involuntary Exchange			A. When businesses thrive by influencing government officials rather than competing in free markets
2. Voluntary Exchange			B. An economic system where the government owns the mean of production and decides how goods and services are distributed
3. Social Contract Theory			C. An economic theory that states that markets are almost always the most effective way to distribute goods and services
4. State Socialism			D. When a good or service that was previously offered by the government is offered by private businesses instead
5. Neoliberalism			E. When buyers and sellers freely and willingly engage in market transactions
6. Crony Capitalism 7. Privatization			F. A social structure where individuals agree to give up certain freedoms in order to gain collective benefits G. When individuals are forced to pay for goods or services in order to prevent a further loss of property