Term
| Any resources that are made by humans and used to create other goods and services are called: |
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Definition
|
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Term
| The resources used to make all goods and services are the: |
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Definition
|
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Term
| Thr purpose of a production possibilities graph is to: |
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Definition
| show alternative ways to use economic resources |
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Term
| The government of a country must make a decision between increasing military spending and subsidizing wheat farmers. This kind of decision is a: |
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Definition
|
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Term
| The oppurtunity cost of a decision can be examined by using a: |
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Definition
| production possibilities graph |
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Term
| Production possiblities frontiers curve when they are charted on a graph because they show: |
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Definition
| the maximum amount that an economy can produce |
|
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Term
| Why are all goods and services scarce? |
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Definition
|
|
Term
| What is the oppurtunity cost of a decision? |
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Definition
| The most desirable alternative decisions that could have been made. |
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Term
| What is a factory building an example of? |
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Definition
|
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Term
| How would you describe an economy that uses its resources to make the greatest possible number of goods and services? |
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Definition
|
|
Term
| The lack of which of the following represents a scarcity? |
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Definition
| Enough workers to finish 2 jobs because there's a limited supply of workers |
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Term
| Which of the following makes someone an entrepreneur? |
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Definition
| When they start their own buisness |
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Term
| A country's production possibilities increase because the available workers become more skilled at using a computer. This is an example of growth caused by: |
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Definition
|
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Term
| you bought two new CDs with the last $30 in your checking account, and your next payday is on Monday. What is the oppurtunity cost of these CDs? |
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Definition
| Dinner and movie with friends over the weekend. |
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Term
| A nation's automakers install new robotic machinery to build cars. Now, cars take only a day to make, and the factories can produce many more cars than before. This is an example of growth caused by: |
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Definition
|
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Term
| One example of an entrepreneur is: |
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Definition
| An artist who runs his own buisness painting murals in office buildings and restaraunts |
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Term
| What can a decision-making grid do? |
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Definition
| Help you determine some of the oppurtunity costs for your decision. |
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Term
| Which of the following lists would an economist consider to be land? |
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Definition
| iron ore, natural gas, fertile soil, water |
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Term
| The community od Desertville traditionally produces a large number of tires and a small amount of kiwi fruit. Kiwis are become increasingly popular, and Desertville has decided to expand kiwi cultivation and decrease tire manufacturing. According to the law of increasing costs, |
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Definition
| the cost of producing kiwi's will decrease while the cost of producing tires will increase. |
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Term
| Which of the following is an example of scarcity, rather than shortage? |
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Definition
| A person wants 5 CDs but he doesn't have enough. |
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Term
| The physical capital used by a woodworker to make furniture would include: |
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Definition
|
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Term
|
Definition
| a taxi driver's knowledge of the city streets |
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Term
| A company that makes baseball caps is underutilizing its resources. What does this mean? |
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Definition
| The company is paying their employees less then they should |
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Term
| What could cause a production possibilites curve to move down and to the left? |
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Definition
| a nation loses land after being defeated in a war |
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Term
| What can cause a production possibilites curve to move to the right? |
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Definition
| a new invention loswers the cost of production |
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Term
| Which of the following is NOT characteristic of a centrally planned economy? |
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Definition
| each collective or factory sets its own goods |
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Term
| What is the struggle among various producers for the consumer's buisness called? |
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Definition
|
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Term
| Why does even a free market economy need some government intervention? |
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Definition
| to provide for things that the marketplace does not address |
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Term
| Which of the following is NOT a key economic question? |
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Definition
| How should it be ensured that goods and services are paid for? |
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Term
| What does the process of specialization do for an economy? |
|
Definition
| it makes it more efficient |
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|
Term
| How would the Chinese economy be characterized? |
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Definition
| mixed, but on the side of centrally planned |
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Term
| What is one of the most important advantages of a free market? |
|
Definition
|
|
Term
| What incentive motivates a manufacturer to sell a product? |
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Definition
|
|
Term
| Which of the following is a chatacteristic of a traditional economy? |
|
Definition
| children tend to have the same jobs as their parents did |
|
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Term
| What is the product market? |
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Definition
| the market in which households purchase the goods and services that firms produce |
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Term
| What incentive do manufacturers have to sell their products? |
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Definition
|
|
Term
| In what kind of economy does the government make all the decisions? |
|
Definition
| centrally planned economy |
|
|
Term
| What is the purpose of competition? |
|
Definition
| to act as a regulatingforce in the marketplace |
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|
Term
| What is the function of an economic system? |
|
Definition
| to produce and distribute goods and services |
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Term
| How would the economy of Canada be likely to be chatacterized? |
|
Definition
| mixed, but on the side of free market |
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|
Term
| What is an important advantage of the free market? |
|
Definition
| it offers a wide variety of goods and services |
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Term
| What might be a hardship for citizens of a centrally planned economy making a transition to a market-based system? |
|
Definition
| workers would lose job security and guaranteed incomes |
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Term
| A person who believed in the doctrine of laissez faire would disapprove of |
|
Definition
| government funding for education |
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Term
| You are an entrepreneur with an innovative idea for a new buisness. In which kind of economy would you have the most oppurtunity to try to achieve success? |
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Definition
|
|
Term
| Households pay firms for goods and services. Firms supply households with good and services. The purchase and supply of goods and services takes place in the: |
|
Definition
|
|
Term
| Which of the following goals is difficult to achieve in a pure free market system? |
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Definition
|
|
Term
| A government prints and distributes posters to inspire workers to increse their productivity. In which kinf of economy does this most likely take place? |
|
Definition
| centrally planned economy |
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Term
| A person believes that real equality can only exist when political equality is coupled with economic equality. This person believes that democratic means should be used to distribute wealth evenly througout society. This person is a: |
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Definition
|
|
Term
| Which of the folloowing is NOT a weakness of centrally planned economies? |
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Definition
| most workers lack job security |
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|
Term
| The economy of China is in transition. What does this mean? |
|
Definition
| the economy is moving from central planning toward a market based system |
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Term
| Which of the following is a private organization that attempts to influence public officials to act or vte in ways that will benefit the groups members? |
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Definition
|
|
Term
| What is the most effective way for consumers to make their desires known to businesses? |
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Definition
|
|
Term
| Why does the government use its powers to make sure that buisnesses disclose so much information to the public? |
|
Definition
| make buyers more knowlegable and safer |
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Term
| What is a positive externality? |
|
Definition
| economic side effect that generates unexpected benefits |
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|
Term
| What does the Temporary Assistance for Needy Families program provide? |
|
Definition
| provides cash to the states to help run their welfare programs |
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|
Term
| What best describes the role of government in a free enterprise system? |
|
Definition
| allow individuals to operate their buisnesses in ways they think will maximize their profits |
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Term
| What effect does new technology usually have on an economy? |
|
Definition
| makes economy stronger and more efficent |
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Term
| Which of the following is a critical rile for determining whether something is a public good? |
|
Definition
| if the total benefits to society are greater than the total cost |
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Term
| Which of the following is NOT an example of a public good? |
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Definition
| (not the answer: highways, national parks, municipal libraries) |
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Term
| What protections does OSHA give to people of the United States? |
|
Definition
| regulations on workplace saftey and infomation about hazards in the workplace |
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Term
| What is the term for the total value of all goods and services produced in a particular economy? |
|
Definition
| Gross Domestic Product (GDP) |
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|
Term
| What is one benefit of Social Security? |
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Definition
|
|
Term
| A person who consumes a good or service but does not pay for it is called which of the following? |
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Definition
|
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Term
| Automakers are required to comply with public disclosure laws. What is one example of a requirement of these laws? |
|
Definition
| car dealers must prominetley display a sticker with the car's fuel efficiencey |
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Term
|
Definition
| economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume |
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Term
| In 1996, a new federal welfare program called Temporary assistance for Needy Families (TANF) began assisting poor families. Which of the following was NOT a provision of TANF? |
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Definition
| (not the answer: benefits, work incentives, welfare programs) |
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Term
| The U.S. Constitution guarantees certain rights that allow people to engage in buisness activities. Which of the following does the U.S. Consitution NOT guarantee? |
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Definition
| (not the answer: property rights, taxes congress can impose, right to make binding contracts.) |
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Term
| Why is legal equality important to the free enterprise system? |
|
Definition
| guarantees all people same legal rights will maximize the use of human capital. |
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Term
| A large telephone company has hired lobbyists to try to persuade lawmakers to reduce governmental regulation over the telecommunications industry. Why might the company do this? |
|
Definition
| some regulations are costly to implement and cut into profits |
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Term
| You read an article in a news magazine that explains how the economy expanded for several years, then went into a period of contraction. What is the subject of this article? |
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Definition
|
|
Term
| To stabalize the economy, policymakers try to achieve three main oucomes: high employment, steady growth, and |
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Definition
|
|
Term
| Why does the government protect inventors and authors by offering them patents and copyrights? |
|
Definition
|
|
Term
| A new runway has opened up at the airport, and the flight path goes directly over your apartment. The noise of the aiplanes is a |
|
Definition
|
|
Term
| Each payday, some of your pay is withheld as payroll deductions for Social Security. What happens to the money that is withheld? |
|
Definition
| money is redistributed as cash transfers to elderly and disabled people |
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Term
| Jeff and Margaret qualify for Section 8 housing, a subsidized housing program from the federal government. What kind of benefit are they recieving? |
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Definition
|
|
Term
| When a consumer is able and willing to buy a good or service, he or she creates which of the following? |
|
Definition
|
|
Term
| What determines the price and the quantity produced of most goods? |
|
Definition
|
|
Term
|
Definition
| goods for which the demand falls when income rises |
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|
Term
| How is future price related to current demand? |
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Definition
| When expected; current demand will fall |
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Term
| What determines how a change in prices will affect total revenue for a company? |
|
Definition
|
|
Term
| What kind of system is the United States economy based on? |
|
Definition
|
|
Term
| Ceteris paribus, or "all other things held constant," is an assumption that has which of the following effects on a demand schedule? |
|
Definition
|
|
Term
| What shows the quantities of products demanded at each price by all consumers in a market? |
|
Definition
|
|
Term
| How did the existence of the baby boom generation change demand in the United States? |
|
Definition
| demand was raised for different goods with each age |
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|
Term
| What does it mean when the demand for a good is inelastic? |
|
Definition
| price increase does not have impact on buying habits |
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|
Term
| What kind of table lists the quantity of a good that a person will buy at different prices? |
|
Definition
|
|
Term
| What is a basic principle of the law of demand? |
|
Definition
| good's price is lower, people will buy more of it |
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|
Term
| How is current demand for a good related to its future price? |
|
Definition
| future price will rise as current demand will rise |
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|
Term
| Which of the following is a good that might not be bought when prices rise? |
|
Definition
|
|
Term
| What kind of changes would be expected in the demand of a country that has a growing population? |
|
Definition
|
|
Term
| A shift in the demand curve means which of the following? |
|
Definition
| want more or less at any price because some other price consideration |
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|
Term
| What is a company's total revenue? |
|
Definition
| amount a company recieves for selling its goods |
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|
Term
| When prices rise, which of the following happens to income? |
|
Definition
|
|
Term
| Which of the following events could cause the demand curve for a sports magazine to shift to the right? |
|
Definition
| local library buys a subscription to the sports magazine for its reading room |
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|
Term
| The price of movie tickets in a town has risen fro $7 to $9. What is the most likely effect of the change in price? |
|
Definition
| quantity demanded will decrease |
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|
Term
| Alex recieves a raise at work and continues to work the same number of hours each week. His demand for $3 shirts, which he considers an inferior good, will |
|
Definition
|
|
Term
| Demand for movie rentals is highly elastic. A video store that raises the price of a rental will |
|
Definition
| possibly gain or lose revenue |
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|
Term
| When movie rentals were $2.95, Sara rented ten movies a month. The price of a rental increased by fifty cents and Sara decided to rent two fewer movies a month. when the price increased by one more dollar, Sara decided to cut the number of movies she rented in half. What is her quantity demanded by month at the current price? |
|
Definition
|
|
Term
| Will, a sprinter on the track team, has inelastic demand for sports drinks. The local store has raised the price of a sports drink from $1.00 to $1.50. Which of the following could descirbe Will's response to the price change? |
|
Definition
| He bought 10 bottles a month at $1.00, and 8 bottles a month at $1.50 |
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|
Term
| Which of these events could permanelty shift an individual's demand curve for umbrellas to the right? |
|
Definition
| he moves from a desert community to a rainy city by the ocean. |
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|
Term
| Which of the following is an example of lower production costs brought about by the use of technology? |
|
Definition
| the use of e-mail to replace slower surface mail |
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|
Term
| What is the effect of import restrictions on prices? |
|
Definition
|
|
Term
| What do sellers do if they expect the price of goods they have for sale to increase dramatically in the near future? |
|
Definition
| store the goods until the price rises |
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|
Term
| Which of the following is the best example of the law of supply? |
|
Definition
| a sandwich shop increses the number of sandwiches they supply every day when the price is increased |
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|
Term
| Which of the following is an example of a good with an inelastic supply? |
|
Definition
|
|
Term
| When the selling price of a good goes up, what is the realtionship to the quantity supplied? |
|
Definition
| it becomes practical to produce more goods |
|
|
Term
| What factor has the greatest influence on elasticity and inelasticity of supply? |
|
Definition
|
|
Term
| Which of the following is a fixed cost for a store? |
|
Definition
|
|
Term
| Which of these events would indicate a movement along a supply curve for batteries? |
|
Definition
| battery manufacturers raise the price of 8 AA batteries from $3.50 to $3.95 a set. |
|
|
Term
| If the supply of a good is inelastic, |
|
Definition
| producers will not change their quantity supplied by much if the market price doubles |
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Term
| An entrepreneur knits sweaterd for sale. The entrepreneur has fixed costs of $100. When he makes 10 sweaters in one month, he much spend $15 on wool. To make eleven sweaters in one month, he must spend $17 on wool. If he has no other costs, what is the marginal cost of the eleventh sweater? |
|
Definition
|
|
Term
| A baker cauculates that by spending $16 on labor and materials, she can bake 10 cakes a day. $24 will allow her to bake 12 cakes, while $36 spent on labor and materials produces 14 cakes. In terms of capital and labor, the baker has what kind of marginal returns? |
|
Definition
| decreasing marginal returns |
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|
Term
| What is one example of a variable cost in a major leage baseball franchise? |
|
Definition
|
|
Term
| Complete the following sentence: At the most profitable level of production, a firm's marginal cost will be ____ the market price. |
|
Definition
|
|
Term
| Which of the following is an example of government influence on supply? |
|
Definition
|
|
Term
| Which of the following is an example of a barter system? |
|
Definition
| instead of paying rent, you clean the house for the owner |
|
|
Term
| Which of the following is an example of money as a unit of account? |
|
Definition
| common monetary unit to use as a comparison |
|
|
Term
| Which of the following is an example of representative money? |
|
Definition
|
|
Term
| What is the purpose of the Federal Deposit Isurance Corporation (FDIC)? |
|
Definition
| to protect the $$ you deposited in the bank |
|
|
Term
| What did the Federalists believe about banking? |
|
Definition
| a centralized banking system was neccesary |
|
|
Term
| What occured during the Free Banking Era? |
|
Definition
| currency varied widely from state to state |
|
|
Term
|
Definition
| paper currecny used by the conferderacy during the Civil War |
|
|
Term
| What is a mortgage used to purchase? |
|
Definition
|
|
Term
| Which of the following is NOT an example of a liquid asset? |
|
Definition
|
|
Term
| Why is using coins as money easier than using gold bars? |
|
Definition
|
|
Term
| What happens during a bank run? |
|
Definition
| more cutromers withdraw money tha the bank has on hand |
|
|
Term
| What condition is neccesary for a fiat money system to work? |
|
Definition
| the government must control the money supply |
|
|
Term
| What happens when you make a purchase using a credit card? |
|
Definition
| credit card issuer pays the state |
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|
Term
| What is the larget source of income for banks? |
|
Definition
| the interest they recieve on loans |
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|
Term
| Which of the following is NOT an example of M1 money? |
|
Definition
|
|
Term
| You need a new computer, and you will need a loan in order to buy one. Which lender is most likelyto charge you the highest interest rate on your loan? |
|
Definition
|
|
Term
| When you pay for a new CD with a debit card, you authorize the transfer of money from your account to the music store's account. In other words, a payment by debit card is the electronic payment by |
|
Definition
|
|
Term
| Penny is an artist, and John is a carpetner. Penny agrees to paint a portrait of John's family in exchange for a handmade table created by John. How did Penny and John pay for the goods in their transaction? |
|
Definition
|
|
Term
| Which of the following is a use of money? |
|
Definition
| (Look at the 4 uses of money: ex. as a unit of account) |
|
|
Term
| In the 1800s, people in mining towns in the West often paid for goods with gold nuggets or gold dust. What was the function of gold? |
|
Definition
| it was used as a representative money |
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|
Term
| In the 1900s, the Russian people lost confidence in the value of thr ruble, and many were no longer willing to sell goods and serviced in exchange for Russian currency. Which characteristic of money did the Russian currency lack? |
|
Definition
|
|
Term
| Why is representative money more useful than commodity money? |
|
Definition
| respresentative money is portable, durable, divisible, and acceptable can also be exchaged for something else of value |
|
|
Term
| American leaders in the early United States wanted to establish a stable banking system in order to |
|
Definition
| promote international trade and economic growth |
|
|
Term
| How did the United States goverment make the American public have confidence in the nation's currency in the 1870's? |
|
Definition
| by the govnerment establishing fiat currency |
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|
Term
| Erin borrowed $18,000 to buy a car. Her loan will be paid off in 5 years. By the time that she pays off the loan, she will have made $20,327 in payments. Why did she have to pay $2,327 more than the price of her car? |
|
Definition
| She had to pay interest of $2,327 for the privelege of borrwing the principal of $18,000 |
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