Economics Units 1-4

Which would be an example of a product with inelastic demand? *

Diapers

An example of a natural monopoly would be *

Duke Energy

Why are entrepreneurs important to a capitalist economy? *

Entrepreneurs start new businesses, offering innovation, jobs, and competition in the market.

Which of the following is not a strength of the market economy? *

It financially supports all of its people equally

Which is NOT a way that the U.S. Government regulates the economy? *

It prohibits competition.

On a stock quote, which column represents the change in the stock price from the previous day's closing price? *

Net Change

An example of a government monopoly would be *

The DMV

Who is NOT included in NAFTA? *

The European Union

A worksheet that helps the company/government know how much to take out of your check to save towards your tax bill is *

W-4

Which of the following is not a basic economic question? *

When to produce?

What is a nation's ration of exports to imports? *

balance of trade

How do consumers exercise their power in the American economy? *

by deciding what to purchase

All of the following are weaknesses of a command economy EXCEPT that it *

can change policy drastically in a short time

Factor of production that includes tools, equipment, machinery, and factories used in the production of goods and services *

capital resources

Cuba is closest to having a.... *

command economy

A good which is purchased in conjunction with another good. If you buy one, you are likely to buy the other to go with it. *

complementary good

An increase in the price of milk causes a decrease in the demand for cereal. These two products are *

complementary goods

Which of the following is a non-price factor that causes a shift in the demand curve? *

consumer expectations, consumer tastes and preferences, and consumer income

Which type of unemployment is described in the following scenario? "You work for a clothing manufacturer that has excessive inventory. You have been laid off until things pick up." *

cyclical

Which type of unemployment is described in the following scenario? "You worked for a company that supplies the automobile industry. Car sales are down and production has slowed. You have been laid off until things pick up." *

cyclical

For most products and services, increased price results in *

decrease in quantity demanded

An item that is economically useful or satisfies an economic want *

good

Who plays the role of protector, consumer, regulator, and promoter of economic goals in the United States? *

government

All of the following are characteristics of capitalism EXCEPT *

government control

Someone's salary before deductions is his/her *

gross income

For something to have value, it must *

have utility

Buying products from another country is *

importing

What would result in an increase in equilibrium price. *

increase in demand, decrease in supply

If a modest price increase has little effect, the demand for that product is *

inelastic

When a price change has no effect on the quantity demanded *

inelastic demand

When a price change has no effect on the quantity supplied *

inelastic supply

Location or other mechanism that allows buyers and sellers to exchange a certain economic product *

market

Market structure in which many sellers offer similar (not identical) products and use non-price differentiation *

monopolistic competition

Market structure in which one seller controls all the production of a good or service *

monopoly

The loan that you get to buy a house is a *

mortgage

A diversified stock portfolio set up by an expert that takes some of the risk out of investing but still pays a higher interest rate than a traditional savings account *

mutual fund

Factor of production that includes natural resources not created by humans *

natural resources

Which of the following lists the four factors of production? *

natural resources, human resources, capital resources, entrepreneurs

A basic requirement for survivial *

need

Money that is left over after taxes and other benefits are deducted is known as *

net income

Market structure in which a few large sellers dominate the market *

oligopoly

Which of the following best describes the relationship between trade-offs and opportunity costs? *

opportunity costs exist when trade-offs are made

What is economic interdependence? *

people's reliance on one another to provide goods and services

Market structure in which many sellers offer identical products, resulting in the market determining price *

perfect competition

Specialization refers to *

performing one task relatively more efficiently than another

Changes in quantity demanded are caused by changes in *

price

According to Adam Smith, what directs the choices business people make about how to use their resources? * pic wouldn't download

profit

Condition that results from society not having enough resources to produce all the things that people would like to have *

scarcity

What is the fundamental problem of economics? *

scarcity

Work that is performed for someone *

service

An increase in quantity supplied at every price causes the supply curve to *

shift right

Exists when the quantity supplied is less than the quantity demanded *

shortage

Part ownership in a corporation *

stock

Which type of unemployment is described in the following scenario? "You worked as a bank teller. In recent years, more people use electronic payments instead of cash. Because of this decline in volume, the bank discontinued your position." *

structural

Which type of unemployment is described in the following scenario? "You worked in technical support for a large computer company. The company outsourced this service to a company overseas, so you are out of a job." *

structural

A good which is purchased to replace another similar but more expensive good. If the price of one product is higher, you are likely to buy the other, similar product *

substitute good

Exists when the quantity demanded is less than the quantity supplied *

surplus

A tax on imports is a *

tariff

Opportunity costs are *

the cost of the next best alternative when a choice is made

What is the unemployment rate? *

the percentage of people who are looking for a job but can't find one

Consumers' willingness to replace a costly item with a less costly item is an example of *

the substitution effect

What is GDP? *

the total value of everything sold in a year, calculated by adding consumer spending, business investment, foreign trade, and government spending

A demand schedule illustrates *

the various quantities demanded of a particular product at various prices at a given time

Which describes a market economy? *

where consumers and privately-owned businesses answer the three basic economic questions

The system that allows people to pay federal income taxes out of each check throughout the year is *

withholding

What is a multinational corporation? *

an organization that manufactures and markets products in many different countries and has multinational stock ownership and management

On a stock quote, which column represents the last trading price recorded when the market closed on the day? *

Close

According the the demand curve for videos, how many videos would be demanded at a price of $10? * couldn't upload the pic

1000

An account that allows you to save for retirement and is not taxed is *

401K

An example of a geographic monopoly would be *

A concession stand at a baseball stadium

An example of a technological monopoly would be *

A medication with a patented formula

Which of the following societies are examples of traditional economies? *

African Mbuti, Australian Aborigines, Amish, Native American

Insurance on your mortgage that financial institutions require when you don't put a 20% down payment on a home purchase is *

PMI

On a stock quote, which column represents the unique alphabetic name which identifies the stock? *

Ticker

On a stock quote, which column represents the total number of shares traded for the day? *

Trading Volume

Which of the following is an example of a good? *

a car

What is inflation? *

a decrease in the value of currency as prices go up over time

A production possibilities curve/frontier is *

a diagram representing various combinations of goods and services that an economy can produce when all resources are fully employed

What is a recession? *

a downturn in the economy characterized by a decrease in productivity and an increase in unemployment

What is licensing? *

a global strategy in which a firm allows a foreign company to produce its products in exchange for a royalty

Which of the following is an example of a service? *

a haircut

Who would you most likely find participating in a market economy? *

a mom working overtime to save up money for her child's college fund

What is a joint venture? *

a partnership in which two or more companies join to undertake a major project

Which of the following is not a capital good? *

a refrigerator on sale at an appliance store

Trade-offs are *

alternative choices

Which describes price stability? *

an economic goal that is based on preventing inflation

Which describes economic freedom? *

an economic goal that is based on the desire of people to make their own decisions

Which describes economic efficiency? *

an economic goal that is based on the desire of people to use resources wisely

Decreasing extra usefulness *

diminishing marginal utility

Which of the following is not a major economic and social goal of the United States? *

economic interdependence

When a price change has large effect on the quantity demanded *

elastic demand

When a price change has a large effect on the quantity supplied *

elastic supply

A ban on the export or import of a certain product or on trade with a particular country *

embargo

Occurs when the quantity supplied and the quantity demanded are equal *

equilibrium point

Value or wealth that is accumulated by homeowners as they pay down their mortgage and/or the value of their home goes up *

equity

Selling products to another country *

exporting

Which type of unemployment is described in the following scenario? "You completed you medical degree and will start work at a local hospital next month." *

frictional

Which type of unemployment is described in the following scenario? "You finished college and earned a bachelor's degree in public administration. You have applied for several jobs and are waiting to hear back." *

frictional