UTHS ECON 2021
Which chart correctly identifies the correct hierarchy of the Federal Reserve System? A) Member Banks 12 Federal Reserve Banks Federal Reserve Board B) Federal Reserve Board 12 Federal Reserve Banks Member Banks C) 12 Federal Reserve Banks Federal Reserve Board Federal Reserve Banks D) Federal Reserve Board Member Banks 12 Federal Reserve Banks
B) Federal Reserve Board 12 Federal Reserve Banks Member Banks
The supply and demand schedules for dozens of roses are given below: Price Quantity Supplied per period Quantity Demanded per period $10 200 500 $20 300 450 $30 400 400 $40 500 350 $50 600 300 The equilibrium for a dozen roses is: A)$10 B)$30 C)$20 D)$40
B)$30
The nation of Economicsland has a population of 100 million people. 20% of its population does not have a job. 10% of the population are children and people who have stopped looking for work. What is Economicsland's unemployment rate? A)30% B)10% C)20% D)40%
B)10%
The Federal Reserve System of the United States is made up of: A)50 Federal Reserve District banks, one for each state. B)12 Federal Reserve District banks. C)5 Federal Reserve District banks. D)20 Federal Reserve District banks.
B)12 Federal Reserve District banks.
A central bank is: A)A bank that has many branches. B)A nation's main monetary authority. C)A city's primary bank. D)A bank centrally located in a region.
B)A nation's main monetary authority.
Which of the following economic factors can cause a change in the demand for a product? A)Consumer Expectations B)All of the Above C)Consumer Income D)Consumer Tastes
B)All of the Above
All of the following are features of limited partnerships except A)One partner is responsible for the day-to-day management B)All partners can be held liable C)Partners may invest in the business and earn a profit D)Other partners have limited if any responsibilities
B)All partners can be held liable
Which living situation will be cheaper in the very long term? A)Renting a home B)Buying a home
B)Buying a home
Chevy is running ads for the Chevy Camaro, offering lower prices and better warranties than the Ford Mustang. This is known as: A)Price Determinants B)Competition C)Complements D)Substitution
B)Competition
Entrepreneurs and companies that offer the same goods and services are in a state of: A)Decline B)Competition C)Profit Motive D)Production Possibility
B)Competition
2016 Values GDP $1.02 trillion Inflation rate from previous year 5% Population change 1% A)Increase B)Decrease C)Stay the Same
B)Decrease
2016 Values GDP $1.05 trillion Inflation rate from previous year 4% Population change 2% A)Increase B)Decrease C)Stay the Same
B)Decrease
For questions 5-7, read each scenario and determine whether GDP would increase, decrease, or whether it would have no effect: Melissa purchases her wedding dress from China. A)No Change B)Decrease C)Increase
B)Decrease
Tesla is a car company that typically makes sports cars valued at $100,000. Recently, Tesla has created a new vehicle for $30,000. What do you think happened as a result of this announcement? A)Demand for Tesla vehicles decreased as it showed the company wasn't profitable B)Demand for Tesla vehicles increased with the price decrease C)Demand for Tesla vehicles immediately increased and then decreased, as consumers stay loyal to brands they have previously purchased D)Demand for Tesla vehicles stayed the same
B)Demand for Tesla vehicles increased with the price decrease
Which of the following is not represented in a production-possibility curve? A)Opportunity Cost B)Demand for a good C)Choice D)None of the answers are represented
B)Demand for a good
Which economic institution in a market economy converts raw materials into goods and services? A)Government B)Firms C)Households D)Banks
B)Firms
Which economic institution owns the factors of production in a market economy? A)Government B)Households C)Banks D)Firms
B)Households
Buyers looking to purchase a house within the next week would find the supply for housing is: A)Elastic B)Inelastic C)Increased D)Decreased
B)Inelastic
Entrepreneurs typically thrive in A)Communist Societies B)Market Economies C)Command Economies D)Traditional Economies
B)Market Economies
Market structure(s) in which the products are unique include A)Perfect Competition B)Monopolistic Competition and Oligopoly C)Monopolistic Competition and Monopolies D)Monopolistic Competition and Perfect Competition
B)Monopolistic Competition and Oligopoly
Which market structure has the smallest number of sellers? A)Oligopoly B)Monopoly C)Monopolistic Competition D)Perfect Competition
B)Monopoly
A healthy breakfast, clean drinking water and a safe home are all examples of: A)Wants B)Needs C)Production Possibilities D)Opportunity Costs
B)Needs
When an enterprise highlights a goods or services appearance, quality, and location rather than concentrating on the price this is known as A)Surplus B)Nonprice competition C)Patent D)Commodities
B)Nonprice competition
Why are there so many houses available for sale in the city of Detroit as compared to New York City? A)Age of population B)Number of Consumers C)Technological Improvements D)Consumer Expectations
B)Number of Consumers
All of the following are features of sole proprietorship's except A)Liability is unlimited B)Profits are taxed twice C)They are the most frequent form of business D)There is a sole owner
B)Profits are taxed twice
What is it called when the government places limits on the number of a given good that can be imported? A)Tariffs B)Quotas C)Taxes D)Subsidies
B)Quotas
A certificate allows the bearer to claim a new car. A)Commodity Money B)Representative Money C)Fiat Money
B)Representative Money
A customer writes several checks at the mall to pay for their purchases. A)Commodity Money B)Representative Money C)Fiat Money
B)Representative Money
The terms most often associated with centrally planned economies are: A)Privatization and self interest B)Socialism and Communism C)Authoritarian and Free Enterprise D)Free Market and heavy industry
B)Socialism and Communism
The easiest form of business to establish in our free market economy is a A)Corporation B)Sole proprietorship C)General partnership D)Limited partnership
B)Sole proprietorship
Buying partial ownership in a corporation is identified as A)Margin B)Stocks C)Loans D)Bonds
B)Stocks
The Fed/Federal Reserve Bank provides banking service A)Only private banks. B)The national government and many private banks. C)Only the national government. D)The national government and only a few private banks.
B)The national government and many private banks.
What problem did the introduction of Federal Reserve Notes help fix with the banking system? A)Money was not easily divisible into smaller denominations until their introduction. B)They give the United States a single currency as opposed to every bank producing their own currency notes. C)Banks were unable to loan money out to customers before their introduction. D)They gave the United States a form of paper currency for the first time.
B)They give the United States a single currency as opposed to every bank producing their own currency notes.
An economy that relies on habit, custom, or ritual to decide what to produce is known as: A)Free Market Economy B)Traditional Economy C)Command Economy D)Mixed Economy
B)Traditional Economy
A leftward shift in the supply curve indicates: A)an increase in the quantity supplied at each price B)a decrease in the quantity supplied at each price C)that more entrepreneurs have entered the industry D)that more product is demanded at each price
B)a decrease in the quantity supplied at each price
The overall goal of NAFTA is the creation of: A)a united governmental structure. B)a trading market without internal trade barriers. C)a common currency. D)a discount on purchases.
B)a trading market without internal trade barriers.
Interest is payment earned from: A)land. B)capital. C)labor. D)entrepreneurship.
B)capital
Market equilibrium refers to a specific situation in which the market price: A)is high enough to allow corporations to earn a return. B)is at a level where there is neither a shortage nor a surplus. C)is just below the price ceiling but just above the price floor. D)is low enough for consumers to buy as much as they want.
B)is at a level where there is neither a shortage nor a surplus.
In the past, a United States dollar bill was representative money, which refers to how_____. A)it could legally be spent by only United States citizens B)its value was based on the ability to exchange it for gold or silver C)Congressional representatives had to authorize each printing D)it had a separate economic use other than as currency
B)its value was based on the ability to exchange it for gold or silver
A basic WTO principle is that trade barriers: A)should be the same in all member countries so that the result is equivalent to free trade. B)should be the same in all member countries so that the result is equivalent to free trade. C)can be imposed if a majority of the members of the WTO agree. D)can be imposed by any country that believes it will benefit from the trade barriers.
B)should be the same in all member countries so that the result is equivalent to free trade.
How do governments earn income to provide services for citizens? A)transfer payments B)taxes C)expenditures D)regulations
B)taxes
When the market is doing well and the value of the stocks, or shares in a business, increase this is known as a
Bull or Bear Market
Your credit score can be used to determine all of the following except _____. A)Whether or not you will be approved for a credit card B)Whether or not you will be approved for a loan C)How much salary an employer will offer D)The interest rate you pay on loans
C)How much salary an employer will offer
When a change in an individual's consumption results from a change in their salary, this is known as: A)Price Effect B)Substitution Effect C)Income Effect D)Demand Schedule
C)Income Effect
As the price of a good increases the quantity supplied will: A)Be stagnant as demand and supply are not related B)Decrease C)Increase D)Fluctuate and eventually decrease
C)Increase
Consumers purchase 1 million new self-driving cars made by Ford Motors. A)Decrease B)No Change C)Increase
C)Increase
Which market structure has the most control over prices? A)Monopolistic Competition B)Perfect Competition C)Monopoly D)Oligopoly
C)Monopoly
Which market structure would the electric company typically belong to? A)Monopolistic Competition B)Oligopoly C)Monopoly D)Perfect Competition
C)Monopoly
Workers recently complained about dangerous conditions inside a factory. The air conditioner was not working properly and temperatures were known to exceed 100 degrees. Which government agency is responsible for investigating this condition? A)NCSI B)NAFTA C)OSHA D)FICA
C)OSHA
Imagine your school is purchasing new economic textbooks. Only three firms exist and all produce slightly different economic textbooks. The one that offers the best price wins the contract to provide books for your school. The type of market structure described is a: A)Perfect competition B)Monopolistic competition C)Oligopoly D)Monopoly
C)Oligopoly
When you are required to choose between two things and give something up this is known as: A)Scarcity B)Production Possibility C)Opportunity Cost D)Needs
C)Opportunity Cost
Why must people make choices? A)People have infinite amounts of money and time B)People always like to decide on variations of the same item C)People have a finite amount of money, time and resources. D)To maximize savings and increase profits
C)People have a finite amount of money, time and resources.
Which market structure has the least barriers to entry? A)Oligopolies B)Monopoly C)Perfect Competition D)Monopolistic Competition
C)Perfect Competition
In a perfect competition which of the following factors are key for buyers when competing for sales: A)Differentiation B)Heterogenous products C)Price D)Multiple buyers
C)Price
Which of the following can never shift the demand curve? A)Consumer Tastes B)Consumer Income C)Price D)Consumer Expectations
C)Price
What happens to the price of an item when it becomes more scarce? A)There is not enough information available to know B)Price decreases C)Price increases D)Price stays the same
C)Price increases
The trade-offs facing a society can be illustrated in a graph known a: A)Production-cost model. B)Production-cost curve. C)Production-Possibilities Curve. D)production-cost forecast model.
C)Production-Possibilities Curve.
Identify the term economists use to explain why a limited natural or man-made resource can command a high price. A)Rationing B)Trade-Off C)Scarcity D)Commodities
C)Scarcity
What is the term used to describe the situation in which people have limited resources but unlimited wants? A)Opportunity Cost B)Specialization C)Scarcity D)Competition
C)Scarcity
2016 Values GDP $1.20 trillion Inflation rate from previous year 10% Population change 10% A)Increase B)Decrease C)Stay the Same
C)Stay the Same
At a price of $299.99, the manufacturer of a smoothie maker is willing to produce 29,000 units per quarter. If the CEO of the smoothie maker decides to sell the smoothie maker for $350.00 this will create a: A)Price ceiling collapse. B)Price floor increase. C)Surplus of smoothie makers. D)Shortage of smoothie makers.
C)Surplus of smoothie makers.
Explain why well-paid people are willing to spend more money for the same goods they could purchase at discount stores. A)They don't mind paying more B)They make unwise choices C)The opportunity cost is low D)They never like the customer service at the discount store
C)The opportunity cost is low
Market disequilibrium occurs when: A)The supply and demand curve does not shift for a long period of time. B)The future quantity supplied is equal to the future quantity demanded. C)The quantity supplied does not equal the quantity demanded. D)The quantity supplied is equal to the quantity demanded.
C)The quantity supplied does not equal the quantity demanded.
How would an increase in the price of flour affect the market for hamburger buns? A)The supply curve would remain the same B)The supply curve would fluctuate in both directions C)The supply curve would shift to the left D)The supply curve would shift to the right
C)The supply curve would shift to the left
Tropical vacations, concert tickets and headphones are all examples of: A)Free Enterprise System B)Scarcity C)Wants D)Needs
C)Wants
The FDIC's (Federal Deposit Insurance Corporation) main purpose is to A)finance the military during times of war. B)determine the amount of bonds the Fed sells to banks. C)assure Americans that their bank deposits are safe. D)put private banks under government control.
C)assure Americans that their bank deposits are safe.
Communism is characterized as a: A)social and political philosophy based on the belief that democratic means should be used to distribute wealth unevenly throughout a society B)the doctrine that government should generally not intervene in the marketplace. C)centrally planned economy with all economic and political power resting in the hands of the central government D)investments being determined by private decision rather then state control.
C)centrally planned economy with all economic and political power resting in the hands of the central government
In the product market of the circular flow model: A)The department of defense buys a tank from a weapons manufacturer. B)A retirement fund buys stock in a major corporation. C)consumers buy finished products from firms. D)firms buy finished products from households.
C)consumers buy finished products from firms.
The circular flow model illustrates the exchange between _____: A)goods and services. B)inputs and outputs. C)firms and households. D)resources and payments.
C)firms and households.
What type of tax requires individuals with a higher income to pay a higher percentage of their income? A)proportional B)horizontal C)progressive D)regressive
C)progressive
Match the definitions to their correct term: Banking account that allows you to make unlimited withdrawals, but pays no interest rate.
Checking Account
What is the term is used to describe the process which basic goods pass through as they are transformed into goods for final consumption?
Circular Flow Model
Why do countries import goods instead of making everything themselves?
Countries import goods that can be more effectively and cheaply produced by another country.
Match each term with its correct definition: National Banking Act 1863
Created system of banks chartered by the national government that would create a uniform currency for the United states
Match the definitions to their correct term: A rating that determines whether or not an individual will be approved for loans, and what interest rates they will pay.
Credit Score
Match the definitions to their correct term: Financial institution with fewer branches than commercial banks, but which pays higher interest rates and charges lower fees.
Credit Union
Today, American paper currency is fiat money, which refers to how _____. A)it has an alternate economic use other than as currency B)it had a separate economic use other than as currency C)it can legally be exchanged for gold or silver D)the government mandates that it must be accepted
D)the government mandates that it must be accepted
For each scenario, state: whether it would cause GDP to increase, decrease, or have no effect. which category, if any, of GDP is being affected: Americans begin importing robot pokemon from Japan like crazy.
Decrease due to the rise of imports, which gets subtracted from GDP.
True or False: According to John Maynard Keynes, the government should increase spending during a recession to help spur businesses to increase hiring.
True
True or False: Milton Friedman believed that large amounts of government spending just led to inflation.
True
True or False: Money's use as a store of value refers to how it can maintain its value over time.
True
True or False: The highest priority in your personal spending budget should be on the essentials of shelter and food.
True
True or False: You do not have to pay back federal student loans until after you graduate from college.
True
True or False: Your bank can charge you a fee if you use a 3rd-party ATM machine to withdraw money from your checking account.
True
Match the following definitions with the correct term: The free application you fill out to qualify for federal grant, work-study, and loan money.
FAFSA
Define trade barriers.
Government imposed limit or blockage on trading goods between nations.
For each scenario, state: whether it would cause GDP to increase, decrease, or have no effect. which category, if any, of GDP is being affected: Car manufacturers begin building more factories in the United States.
Increase as businesses invest more.
For each scenario, state: whether it would cause GDP to increase, decrease, or have no effect. which category, if any, of GDP is being affected: The government decides to expand the fleet of aircraft carriers.
Increase as government spending increases.
For each scenario, state: whether it would cause GDP to increase, decrease, or have no effect. which category, if any, of GDP is being affected: Apple invents eyeglasses that allow you to surf the internet. Millions are sold.
Increase due to personal consumption rising.
For each scenario, state: whether it would cause GDP to increase, decrease, or have no effect. which category, if any, of GDP is being affected: 1 million Google smart cars that drive themselves are sold to Canada.
Increase due to rise of exports, which get added to GDP.
Match the definitions to their correct term: Investment account for retirement. Government will not charge income tax on profits taken out of the account.
Roth IRA
match the definitions with their correct term: This measurement should be used to determine how the average standard of living for a person living in a country is changing.
Real GDP per Capita
match the definitions with their correct term: Measurement of the amount of goods and services that can be produced with a set amount of resources.
Productivity
Match each term with its correct definition: Federal Deposit Insurance Corporation (FDIC)
Provides government-backed guarantee that bank customer's accounts are safe and will be reimbursed in event of bank failure
Match each term with its correct definition: Bank Run
Situations that occurred before modern banking reforms that led to banks going bankrupt as their customers panicked and tried
Match each term with its correct definition: Savings-Economic Growth Relationship
Term referring to how the more money that is saved in banks leads to more banks loans that cause more spending and jobs
Match each term with its correct definition: Federal Reserve Note
The sole paper currency valid in the United States, printed by the central bank
Match the definitions to their correct term: Employer-sponsored retirement account where the employer will match the funds that you invest.
401(k)
A company can produce various levels of sunscreen and hand lotion along a production-possibility curve. If we increase the amount of sunscreen produced, which of the following answers would be true? A)None of the choices B)We must decrease the production of hand lotion C)The company will also increase the production of hand lotion D)We cannot change the production of hand lotion
B)We must decrease the production of hand lotion
Which living situation has more flexibility in terms of moving? A) Renting a home B) Buying a home
A) Renting a home
Which living situation will be cheaper in the short term? A) Renting a home B) Buying a home
A) Renting a home
One of the significant drawbacks of a general partnership is A)All general partners are liable B)Collaborating with your partner to create a unified vision C)Monetary decisions must be handled by both D)Different people have different management styles
A)All general partners are liable
Bonds are different than stocks in that bonds: A)Bonds are loans, while stocks you own B)Requires you to pay a small percentage of the stock price in order to own it C)Are unsecured debt D)Bonds you own, while stocks are loans
A)Bonds are loans, while stocks you own
What is the basic question(s) all economic systems try to answer? Choices What to Produce? How to Produce? When to Produce it? For whom to Produce? A)Choices 1, 2 and 4 only B)Choices 1 and 2 only C)All of the above D)Choices 1, 2 and 3 only
A)Choices 1, 2 and 4 only
Transactions made between households and firms in a market economy are illustrated in which model? A)Circular Flow B)Utility C)Marginal Utlity D)Production Possibilities Curve
A)Circular Flow
American colonists and Native Americans used tobacco as their medium of trade. A)Commodity Money B)Representative Money C)Fiat Money
A)Commodity Money
Ancient Rome used to pay their soldiers with salt. A)Commodity Money B)Representative Money C)Fiat Money
A)Commodity Money
British colonies in the Caribbean used rum as a medium of exchange. A)Commodity Money B)Representative Money C)Fiat Money
A)Commodity Money
In the aftermath of the devastation of World War II, cigarettes and gasoline were used in parts of Europe to purchase goods A)Commodity Money B)Representative Money C)Fiat Money
A)Commodity Money
When a producer has a lower opportunity cost of production than another producer for an item, what exists? A)Comparative advantage B)Absolute disadvantage C)Comparative disadvantage D)Absolute advantage
A)Comparative advantage
Fast food companies have noticed the consumption of fast food has been decreasing. This is an example of: A)Consumer Taste B)Consumer Expectations C)Price D)Consumer Income
A)Consumer Taste
Businesses decide to cut back spending on new office buildings. A)Decrease B)Increase C)No Change
A)Decrease
When investors receive profits from companies this known as: A)Dividends B)Divisors C)Bonds D)Mortgages
A)Dividends
Inward shifts in the production-possibility curve represent: A)Economic Decline B)Economic Stability C)Economic Growth D)A variable
A)Economic Decline
Which statement about the United States' free enterprise system is NOT true? A)Entrepreneurs are guaranteed unrestricted freedom and financial success B)Individuals are free to buy whatever they can afford C)Laws that set safety standards protect buyers but limit freedom of choice D)The main reason people produce goods and services is the profit incentive
A)Entrepreneurs are guaranteed unrestricted freedom and financial success
Which form of currency would be the easiest for a government to create more of without limit? A)Fiat Money B)Commodity Money C)Representative Money
A)Fiat Money
Incentives for employees other than money, such as paid vacations, and retirement pay are known as A)Fringe Benefits B)Income Effect C)Surplus D)Search Costs
A)Fringe Benefits
If a nation is currently operating at a point inside its production possibilities curve, it: A)Has unemployed workers and/or inefficiently employed resources. B)Has employed all of its workers. C)Is operating at its full potential. D)Must reduce the output of one good in order to produce more of another good.
A)Has unemployed workers and/or inefficiently employed resources.
2016 Values GDP $1.04 trillion Inflation rate from previous year 2% Population change 0% A)Increase B)Decrease C)Stay the Same
A)Increase
2016 Values GDP $1.10 trillion Inflation rate from previous year 3% Population change 2% A)Increase B)Decrease C)Stay the Same
A)Increase
Pears are an excellent example of: A)Inelastic Supply B)Surplus C)Elastic Supply D)Shortage
A)Inelastic Supply
Which of the following measurements would you expect to rise when the economy is rapidly expanding and growing? A)Inflation B)Poverty C)Unemployment
A)Inflation
If GDP this year rose by 1%, inflation rose by 2%, and the population did not change, what happened to real GDP per capita this year? A)It fell B)No change C)It rose
A)It fell
The economic concept explaining why a business provides more of a good or service at higher prices than they would be willing or able to at lower prices is known as: A)Law of Supply B)Equilibrium C)Supply Schedule D)Law of Demand
A)Law of Supply
Partnerships in which some partners are protected from personal liability in certain situations, such as another partner's mistakes. A)Limited Partnership B)General Partnership C)General liability partnerships D)Articles of Partnership
A)Limited Partnership
What would the government do if it wanted to use an expansionary policy? A)Lower taxes B)Increase government spending C)Decrease GDP D)Decrease GDP
A)Lower taxes
Capitalism is often associated with A)Market Economies B)Traditional economies C)Communism D)Command Economy
A)Market Economies
While resources and products flow in one direction of the circular flow model, what flows the other direction? A)Money B)Public goods C)Services D)Imported goods
A)Money
Influences that shift the supply and demand curves to the left or the right for reasons other than price are: A)Non-Price Determinants B)Price Ceiling C)Price Determinants D)Price Floor
A)Non-Price Determinants
Which market structure would Chevrolet Vehicles belong to? A)Oligopoly B)Monopolistic Competition C)Perfect Competition D)Monopoly
A)Oligopoly
In which market structure is there no control over the price of a product? A)Perfect Competition B)Oligopoly C)Monopoly D)Monopolistic Competition
A)Perfect Competition
In which of the market structures does a highly competitive market with many buyers and sellers of an identical product have no control over the price of a product? A)Perfect Competition B)Monopoly C)Monopolistic Competition D)Oligopoly
A)Perfect Competition
Imagine someone was injured in your establishment one concern for sole-proprietorship's is: A)Personal liability B)Income effect C)Fringe benefits D)Limited partnerships
A)Personal liability
What is expansionary policy? A)Policy that seeks to expand the money supply to encourage economic growth. B)A policy seeking to expand the government. C)A government policy for dealing with the budget. D)A finance ministry to slow down an economy.
A)Policy that seeks to expand the money supply to encourage economic growth.
Unlimited liability for sole proprietors means that A)Sole proprietors can lose everything they possess if their business fails B)Sole proprietors are responsible for the shares they own in a business C)Sole proprietors should merge and create corporations as soon as they have enough capital D)Partnerships are generally preferred over sole proprietorships
A)Sole proprietors can lose everything they possess if their business fails
The most common form of business organization in the United States is A)Sole proprietorship B)General Partnership C)Limited partnership D)Corporations
A)Sole proprietorship
The key factor that makes the supply of a good or service elastic is: A)The amount of time it takes a business to react to price changes in the market place. B)The price of the good or service stays in equilibrium C)The number of companies competing in the marketplace D)The availability of substitutes in the marketplace
A)The amount of time it takes a business to react to price changes in the market place.
Economics is the study of A)The choices we make because of scarcity B)The effect of the government budget on inflation C)The reasons certain consumers can afford all wants and needs D)The distribution of goods globally
A)The choices we make because of scarcity
What role did Adam Smith believe the government should play in regard to the economy? A)The government should have a hands-off approach and not interfere. B)The government should micromanage all workers' salaries to ensure they can purchase products. C)The government should limit the amount of profit one company could make. D)The government should control all aspects of the economy in order to ensure consumers are treated fairly.
A)The government should have a hands-off approach and not interfere.
Profits are payments earned from: A)entrepreneurship. B)labor. C)capital. D)land.
A)entrepreneurship
The relationship between the values of two currencies is called the: A)foreign exchange rate. B)conversion rate. C)currency rate. D)forward rate.
A)foreign exchange rate.
The main characteristic of commodity money that makes it differ from other types of money is that A)has an inherent use and value separate from its role as money B)is used by modern banks, while other money types were used in the past C)can be exchanged for gold or silver with the government D)can easily be both carried in large quantities and divisible
A)has an inherent use and value separate from its role as money
The largest source of income for the federal government comes from: A)income taxes. B)tariffs. C)FICA taxes. D)corporate taxes.
A)income taxes.
At a price of $299.99, the manufacturer of a smoothie maker is willing to produce 29,000 units per quarter. At a price of $100.00, it is likely that the manufacturer will be willing to produce: A)less than 29,000 units per quarter. B)29,000 units per quarter. C)more than 29,000 units per quarter. D)it is impossible to predict the effect of a higher price with the data provided.
A)less than 29,000 units per quarter.
One of the most important effects caused by people saving their money in banks is that banks _____. A)loan this money out to individuals and businesses who invest it and grow the economy B)take responsibility of the money so that bank customers face less tax liabilities C)keep this money in reserve to ensure that the government has access to enough currency to pay off debts. D)use the vast majority of the money to build new bank branches and hire employees
A)loan this money out to individuals and businesses who invest it and grow the economy
A _______ tax is when all taxpayers pay exactly the same percentage of their income. For example, all taxpayers would pay 20% of their income, regardless of how much income they receive. A)proportional B)regressive C)progressive D)progressive
A)proportional
By following the principle of comparative advantage, nations can: A)reach points outside their production possibilities frontiers B)avoid the fundamental economic problem of scarcity C)none of the above D)avoid being forced into international trade
A)reach points outside their production possibilities frontiers
When a company does not meet the demand of the consumer by supplying enough of a specific good or service, then another company will emerge to fill the void until: A)the market reaches equilibrium B)the company stops competing and claims a monopoly on the market C)the market has a shortage D)the market has a surplus
A)the market reaches equilibrium
The Federal Reserve issues Federal Reserve Notes, which are _____. A)the single paper currency valid in the United States B)tax bills that American workers pay each paycheck C)orders for weak banks to come under government ownership. D)bonds that the government sells to pay off the debt
A)the single paper currency valid in the United States
Imagine the price of mozzarella cheese decreased, but farmers were able to increase production of mozzarella cheese by using the same resources presently available. How would this affect the supply of pizza? A)the supply of pizza would increase B)the supply of pizza would decrease C)the demand for pizza would increase D)the supply of pizza would initially spike and then gradually decrease
A)the supply of pizza would increase
Match the following terms with their definitions: Free Enterprise
Any and all individuals have the legal right to operate any legal business they desire
Match the following terms with their definitions: Private Property
Any individual in the U.S has the legal right to own property, prototypes, products, and concepts.
Match the term to the correct definition: Charter
government document that gives permission to start a corporation
Match the term to the correct definition: Stockholder
individuals who purchase shares of a company
Match the term to the correct definition: Corporation
legally recognized as a separate legal entity that has all the rights of a person or sole proprietor
Match the following terms with their definitions: Profit Motive
people develop a business to earn a profit; therefore it is beneficial to maintain low costs and high sales
Match the term to the correct definition: Dividend
portion of the companies earnings given to investors
Match the term to the correct definition: Want
something that we can desire to have and that affects our quality of life, but is not necessary for survival
Match the term to the correct definition: Franchisee
the person who pays a fee in exchange for the right to use a parent companies products, name and business model.
Match the term to the correct definition: Franchisor
the person who sells the rights of a franchise
Match the term to the correct definition: Equilibrium
the quantity demanded equals the quantity supplied
Match the term to the correct definition: Excess Demand
the quantity demanded is greater than the quantity supplied
Match the term to the correct definition: Excess Supply
the quantity supplied is greater than the quantity demanded
Match the term to the correct definition: Law of Supply
the tendency of suppliers to add more of a good at at higher prices
Match the term to the correct definition: Need
things you cannot survive without, such as water, food, and shelter
In the scenario with Canada's maple syrup and Italy's leather goods in Elaborate, what will the countries gain from trading? Explain.
Canada will gain from trading because they need leather goods more in canada.
Match the definitions to their correct term: Banking account that pays a fixed interest rate, but which prohibits withdrawals until the end of its term.
Certificate of Deposit (CD)
Match the term to the correct definition: Stocks
also known as shares that are sold to raise capital
Countries CAN have a comparative advantage even if they do not have an _________.
an absolute advantage.
Match the term to the correct definition: McDonald's
an example of a franchise
Define quota.
A limit on the total quantity of imports allowed into a country each year.
Match the definitions to their correct term: A charge you pay for withdrawing money out of a money machine not owned by your bank.
ATM Fee
Match the definitions to their correct term: Legal proceeding where a person attempts to have their debts cleared. Goes on their credit score for ten years.
Bankruptcy
If a business is under performing and the stocks or shares in that business decrease in value, the market is called:
Bear Market
The Fed has set the reserve requirement to 10%. Assume that Big Bank Inc has $100 million worth of deposits by its customers. How much money is available for Big Bank Inc to loan out? A)$10 million B)$100 million C)$90 million D)$110 million
C)$90 million
Which of the following activities would occur in the resource (factor) market? A)A retirement fund buys stock in a major corporation. B)A teacher buys a new truck from a car dealership C)A farmer buys farmland from a retiring farmer D)The department of defense buys a tank from a weapons manufacturer.
C)A farmer buys farmland from a retiring farmer
What is fiscal policy? A)A finance ministry to slow down an economy. B)Policy that seeks to expand the money supply to encourage economic growth. C)A government policy for dealing with the budget. D)A policy to monitor government spending and preventing financial ruin.
C)A government policy for dealing with the budget.
Which economist argued in favor of the policy known as lassiez-faire? A)David Ricardo B)Karl Marx C)Adam Smith D)Joseph Stalin
C)Adam Smith
Which statement best describes money's function as a unit of account? A)Money's rarity gives it value that all people want. B)Everyone must purchase goods and services with money, and may not use other payments. C)All goods and services in the United States are priced with dollars, allowing their values to be compared. D)Money can be exchanged for a fixed amount of gold or silver.
C)All goods and services in the United States are priced with dollars, allowing their values to be compared.
Kevin decided to open a new toy store in his local community. Before Kevin rents a space, which non-price determinants should he take into consideration: A)Consumer Income B)Consumer Tastes C)All of the Above D)Age of population
C)All of the Above
Which of the following external factors would cause a negative change to the stock market? A)Natural disaster B)Terrorist attack C)All of the above D)Labor strike
C)All of the above
A complement can be described as: A)An instance when you say something nice about someone. B)An instance when consumers' expectations are met. C)An instance when the use of one good increases the use of another good. D)An instance when you can replace one good with another at a cheaper cost.
C)An instance when the use of one good increases the use of another good.
Paying a percentage of the purchase price and then borrowing the rest of the money is known as A)Interest B)Buying bonds C)Buying on margin D)Loans
C)Buying on margin
In which of the following types of bank accounts would your money have the most liquidity? A)Money Market Account B)Savings Account C)Checking Account D)Certificate of Deposit
C)Checking Account
Our demand for apple juice is elastic. This means that if the price of apple juice increases: A)Consumers will buy the same amount as they always had B)Consumers will buy both apple juice and other types of juice C)Consumers will buy less or find a juice to substitute for it D)Consumers will buy more apple juice before it gets expensive
C)Consumers will buy less or find a juice to substitute for it
When the actual price of a good or service is higher than the equilibrium price, this creates: A)A price floor B)A price ceiling C)Excess Supply D)Excess Demand
C)Excess Supply
Early American colonies produced notes that their governments mandated could legally be used to pay taxes. A)Commodity Money B)Representative Money C)Fiat Money
C)Fiat Money
In 18th century Sweden, the government mandated that businesses must accept paper money that could not be exchanged for precious metals. A)Commodity Money B)Commodity Money C)Fiat Money
C)Fiat Money
The American dollar today is used to trade all over the world. A)Commodity Money B)Representative Money C)Fiat Money
C)Fiat Money
In which market structure would the products be identical? A)Monopolistic Competition B)Monopoly C)Oligopoly D)Perfect Competition
D)Perfect Competition
Part of the reason that NBA superstar Kobe Bryant earns millions of dollars each year while teachers may earn $40,000 is that: A)The supply of superstar basketball players is very low, while the supply of competent teachers is much larger. B)Demand for Kobe Bryant's talents is very high since he can generate so much revenue for a firm. C)Consumers enjoy basketball to the point that they are willing to spend lots of money and time attending games and watching commercials. D)All of the Above
D)All of the Above
Which market structure has the easiest barriers to entry? A)Oligopoly B)Monopoly C)Monopolistic Competition D)Perfect Competition
D)Perfect Competition
Which market structure would watermelon belong to? A)Monopolistic Competition B)Monopoly C)Oligopoly D)Perfect Competition
D)Perfect Competition
In a free enterprise system, what occurs when there is a demand for a product or service that does not presently exist in the market? A)Quota levels will be increased to produce enough to meet the demand. B)Depending on the customs or traditions of the society, the product will eventually be made. C)The demand will remain and will not be met. D)An innovative entrepreneur or company will eventually produce it.
D)An innovative entrepreneur or company will eventually produce it.
Which of the following would affect your credit score the most? A)Living in your parents' household. B)Having a low-paying job. C)Leaving a credit card account open for too long. D)Being late on your loan payments, or not paying them at all.
D)Being late on your loan payments, or not paying them at all.
Which of the following types of bank accounts would offer you the most interest on your money? A)Savings Account B)Checking Account C)Money Market Account D)Certificate of Deposit
D)Certificate of Deposit
Which of the following choices is true about the economic policy known as laissez-faire: Choices The doctrine which states that government should not intervene in the marketplace Adam Smith created and promoted the concept of laissez-faire Works exceptionally well in a command economy Exacts strict obedience from its citizens and does not allow individuals freedom of judgment A)Choice 1 only B)Choice 2 only C)Choices 1, 2, and 4 only D)Choice 1 and 2 only
D)Choice 1 and 2 only
Hot dog buns pair perfectly with hot dogs. This relationship is known as: A)Substitution B)Price Determinants C)Competition D)Complementary
D)Complementary
Which group of people ultimately determines the products that a free enterprise economy produces? A)Local government officials B)Congress C)Property Owners D)Consumers
D)Consumers
If the price of a product increases, this will reduce the amount of it that gets purchased because: A)Consumers will never be able to buy as much of the product as they used to B)Consumer tastes will change and they will not want to pay for an item they no longer like C)Real incomes increased D)Consumers will substitute other products for the one whose price has risen
D)Consumers will substitute other products for the one whose price has risen
Which statement about the United State's free enterprise system is NOT true? A)Laws that set safety standards protect buyers but limit freedom of choice B)The main reason people produce goods and services is the profit incentive C)Individuals are free to buy whatever they can afford. D)Entrepreneurs are guaranteed unrestricted freedom and financial success
D)Entrepreneurs are guaranteed unrestricted freedom and financial success
Our demand for gasoline is inelastic. How will this affect the amount consumers purchase? A)Even a tiny change in price will not alter inelastic demand due to the low need for the product B)Any change in price will alter inelastic demand due to the high need for the product C)Any change in price will alter inelastic demand due to the low need for the product D)Even a massive change in price may not alter inelastic demand due to the high need for the product
D)Even a massive change in price may not alter inelastic demand due to the high need for the product
When the actual price of a good or service is lower than the equilibrium price, this creates: A)Excess Supply B)A price ceiling C)A price floor D)Excess Demand
D)Excess Demand
Partnerships in which both partners are equally responsible for the management and financial responsibilities of the business is known as: A)Limited liability partnerships B)Articles of partnership C)Limited partnerships D)General Partnerships
D)General Partnerships
Which of the answers below is not a characteristic of monopolistic competition? A)Multiple sellers B)Differentiation of goods and services C)Multiple buyers D)Identical products
D)Identical products
At a price of $5.95, a brand new fiction novel has recently been published. If the novel is offered for sale at a price of $2.95, then the publisher can expect the demand for the book to: A)Stay the same B)It is impossible to predict the effect of a lower price on sales C)Decrease D)Increase
D)Increase
Which of the following is an example of an opportunity cost? A)Dillon does not buy a video game B)Grace buys shoes and a purse. C)Harry makes a sandwich D)Ivan chooses to buy a sweet tea instead of a drink
D)Ivan chooses to buy a sweet tea instead of a drink
Most modern economies are: A)Free Market Economies B)Traditional Economies C)Command Economies D)Mixed Economies
D)Mixed Economies
Which market structure would Levi Jeans belong to? A)Perfect Competition B)Monopoly C)Oligopoly D)Monopolistic Competition
D)Monopolistic Competition
Which of the terms below describes a highly competitive market with many buyers and sellers with slightly differentiated goods and services? A)Perfect Competition B)Oligopoly C)Monopoly D)Monopolistic Competition
D)Monopolistic Competition
Which of the following markets is the least competitive market structure? A)Perfect Competition B)Monopolistic Competition C)Oligopoly D)Monopoly
D)Monopoly
Which of the terms below defines a market with significant barriers to entry and a single supplier? A)Oligopoly B)Perfect Competition C)Monopolistic Competition D)Monopoly
D)Monopoly
Which of the following external factors would cause a positive change to the stock market? A)Inflation B)Natural disasters C)Political uncertainty D)Multinational peace agreement being signed
D)Multinational peace agreement being signed
__________has nearly eliminated nearly all tariffs and many non-tariff barriers to trade within the U.S. - Canada - Mexico area. A)NATO B)WTO C)The United Nations D)NAFTA
D)NAFTA
Which agency is responsible for enacting policies to save lives, prevent injuries, and protect the health of workers? A)Environmental Protection Agency (EPA) B)Equal Employment Opportunity Act C)Federal Trade Commission (FTC) D)Occupational Safety and Health Administration (OSHA)
D)Occupational Safety and Health Administration (OSHA)
In which of the market structures does a market with few sellers in the market and with slightly different prices exist? A)Perfect Competition B)Monopoly C)Monopolistic Competition D)Oligopoly
D)Oligopoly
At a price of $299.99, the manufacturer of a smoothie maker is willing to produce 29,000 units per quarter. If the CEO of the smoothie maker decides to hold a special sale and sell the smoothie maker for $150.00, this will create a: A)Price floor increase. B)Surplus of smoothie makers. C)Price ceiling collapse. D)Shortage of smoothie makers.
D)Shortage of smoothie makers.
What receives the biggest portion of government spending? A)Income Administration B)Department of Education C)Fixed Dollar Administration D)Social Security Administration
D)Social Security Administration
FICA is a combined tax taken from your earned income, and is used to fund which two federal programs? A)Medicare and Medicaid B)Income and Social Security C)Income and Social Security D)Social Security and Medicare
D)Social Security and Medicare
Which of the following refers to the tendency to buy more of a good when its price falls in relation to similar goods? A)Outward shift of the budget constraint B)Income effect C)Outward shift of the demand curve D)Substitution effect
D)Substitution effect
A graph that shows different amounts of a good or service that one company can supply at every possible price in the marketplace is referred to as a: A)Inelastic supply B)Supply schedule C)Alternative supply D)Supply curve
D)Supply curve
What is it called when the government places taxes on imported goods? A)Quotas B)Subsidies C)Taxes D)Tariffs
D)Tariffs
In the market, what happens to airline travel when the price of traveling by rail decreases? A)The demand curve shifts left, as there is more demand for airline travel B)The demand curve shifts right, as there is more demand for airline travel C)The demand curve shifts right, as there is less demand for airline travel D)The demand curve shifts left, as there is less demand for airline travel
D)The demand curve shifts left, as there is less demand for airline travel
Imagine that a book publisher raises the price of a novel that normally costs $5.95 to $9.95 in order to cover the author's expenses. How will this affect the supply of novels? A)The supply of the novel will not be affected by price B)The supply of the novel will stay the same C)The supply of the novel will decrease D)The supply of the novel will increase
D)The supply of the novel will increase
Scarcity exists because: A)at any given point in the worlds history the amount and quality of resources and the state of technology have been stable. B)at a given point in time technological growth increases at a constant rate. C)Resources are always employed inefficiently. D)The world's resources are in finite supply.
D)The world's resources are in finite supply.
How would you advise a company wishing to produce on a point outside of its production-possibility curve? A)Their company will only be able to maintain this pace for a short period of time. B)Their company is operating at peak potential. C)Their company has unemployment and is inefficient. D)Their company cannot attain this level given existing resources and technology.
D)Their company cannot attain this level given existing resources and technology.
What is the general term for when a government interferes in free trade? A)Intercession B)Policy C)Hindrance to trade D)Trade barrier
D)Trade barrier
One advantage that money has over bartering is its role as a medium of exchange, which refers to how _____. A)valuable commodities like precious metal can be used as money B)money can be used to purchase goods both large and small C)government can mandate the use of money as currency D)all members of society will accept it as payment for a trade
D)all members of society will accept it as payment for a trade
In the circular flow model, money flows: A)from households to the factor market. B)from firms to households C)counter-clockwise from firms to to firms in the form of consumer spending. D)clockwise from households to firms in the form of consumer spending.
D)clockwise from households to firms in the form of consumer spending.
The island of Economics Bay uses colored sea shells as their currency. These shells are valued for their use in their jewelry. This is an example of _____currency. A)representative B)fiscal C)fiat D)commodity
D)commodity
When a country imposes economic sanctions in the form of discriminatory restriction on economic exchanges with a specific country, those economic sanctions are called: A)import tariffs. B)quotas. C)origin regulations. D)embargoes.
D)embargoes.
In a free market economy, private property is: A)non-existent B)discouraged C)limited D)encouraged
D)encouraged
Taxes on things such as liquor, cigarettes, and gasoline are called: A)usage taxes. B)tariffs. C)estate taxes. D)excise taxes.
D)excise taxes.
In the factor market, _____ are purchased by firms. A)private goods B)public goods and services C)unfinished goods and services D)factors of production
D)factors of production
Your community bank actually creates money and increases the money supply whenever it _____. A)prints new paper bills to replace old and worn currency B)sells its customers investments like stocks and bonds that earn interest C)arranges for its customers to pay their tax debts on time D)loans out money that its customers have deposited with them
D)loans out money that its customers have deposited with them
At a price of $299.99, the manufacturer of a smoothie maker is willing to produce 29,000 units per quarter. At a price of $350.00, it is likely that the manufacturer will be willing to produce: A)less than 29,000 units per quarter. B)it is impossible to predict the effect of a higher price with the data provided. C)29,000 units per quarter. D)more than 29,000 units per quarter.
D)more than 29,000 units per quarter.
When a nation's currency declines relative to other currencies, the main effect is that it makes that nation's imports _____ expensive and its exports _____ expensive. A)less, more B)more, more C)less, less D)more, less
D)more, less
In a market economy, the producer has A)to fulfill government quotas of production B)no control of production levels. C)always followed traditional methods of production D)the freedom to adjust production.
D)the freedom to adjust production.
An acknowledged result of NAFTA is that: A)An acknowledged result of NAFTA is that: B)political relations between the U.S., Canada, and Mexico have declined. C)the U.S. has lost a significant amount of revenue from import tariffs. D)there was a considerable increase in trade among the U.S., Canada, and Mexico.
D)there was a considerable increase in trade among the U.S., Canada, and Mexico.
For each scenario, state: whether it would cause GDP to increase, decrease, or have no effect. which category, if any, of GDP is being affected: Businesses decide to decrease their workforce by 2%.
Decrease due to businesses investing less.
Match the following terms with their definitions: Competition
Entrepreneurs and companies who offer the same goods and services vie for the same customers
Investors in the stock market are always guaranteed they will earn a profit. (true or false)
False
True or False: According to Frederick Hayek, communism's only advantage over capitalism is that the government will choose better goods to produce than private businesses would.
False
True or False: Adam Smith believed that due to the invisible hand leading to abuse, government should heavily regulate the economy.
False
True or False: The business cycle refers to how the United States' economy expands and grows every year.
False
True or False: The federal government does not allow banks to charge you a fee if there is too little money in your checking account.
False
True or False: When making a personal spending budget, you should save for retirement before paying the minimum payments on any loans.
False
Define subsidy.
Financial assistance from a nation's government to certain industries within the nation.
Match each term with its correct definition: Bank of the United States (BUS)
First bank in the United States charted by national government
Match each term with its correct definition: Alexander Hamilton
Founding father most associated with creating banking system for the United States
Match each term with its correct definition: Thomas Jefferson
Founding father opposed to creating a national, banking system
For each scenario, state: whether it would cause GDP to increase, decrease, or have no effect. which category, if any, of GDP is being affected: New car sales decrease across the nation.
GDP would decrease because Consumption has increased.
Match the following terms with their definitions: Contract
Individuals and businesses enter into legal agreements with on another
match the definitions with their correct term: The rate at which prices are increasing in an economy.
Inflation
Match the definitions to their correct term: Safety program purchased for homes, cars, and other property to reimburse you in case of damage or loss.
Insurance
match the definitions with their correct term: Term referring to how individuals, seeking their own self-gain, actually benefit the economy and a society as a whole.
Invisible Hand
Look at the amount of hats and buses produced by France and Italy in one month. Hats Buses France 80 30 Italy 100 400 If Italy wanted to establish a comparative advantage in producing hats, what would they have to do? What is the opportunity cost to Italy to increase their production of hats?
Italy would have to divert some time, money, and resources from bus production to hat production to establish a comparative advantage in the production of hats. The opportunity cost of making hats would be fewer buses made in the same amount of time.
Match the definitions to their correct term: Banking account that pays an interest rate, but limits you to a set number of withdrawals per month.
Money Market Account
Country B's entrepreneurs (businessmen) independently decide what to manufacture based on supply and consumer demand. The Chief Executive Officer of a cell phone company decided to increase production levels of their latest cell phone model, while simultaneously decreasing the output levels of their older cell phones. The motivation for the change was based on a consumer survey that showed demand for the newer, updated cell phones was greater than the demand for the older cell phones. Supply and demand demonstrated the need to produce more of the newer models to increase the company's profits. What type of economy does this country have?
Market economy
Match the definitions to their correct term: Loan taken out to purchase a home.
Mortgage
For each scenario, state: whether it would cause GDP to increase, decrease, or have no effect. which category, if any, of GDP is being affected: Used smartphone sales on Ebay increase.
No effect, 2nd hand goods do not count for GDP
For each scenario, state: whether it would cause GDP to increase, decrease, or have no effect. which category, if any, of GDP is being affected: A new illegal drug becomes popular in the Midwest.
No effect, black market goods do not get reported for GDP
For each scenario, state: whether it would cause GDP to increase, decrease, or have no effect. which category, if any, of GDP is being affected: The average SAT score increases by 5%.
No effect, not an expenditure
Match each term with its correct definition: Financial- Intermediary
One of the main functions that banks serve. Connects people who want to save their money with people who want to borrow
Match the definitions to their correct term: Account that pays interest, but which prohibits withdrawals by check or debit card. Certificate of Deposit (CD)
Savings Account
Look at the amount of computers and cars produced by Germany and the United States in one month. Cars Computers Germany 40 10 United States 50 100 Which country has the absolute advantage in cars? Which country has the absolute advantage in computers?
The United States has absolute advantage in cars AND computers.
Match each term with its correct definition: Federal Reserve (Fed)
The United States' current central bank that oversees and regulates the nation's banks
Country A has an economy that developed over time, and the people rely on trade and bartering. The people know and trust one another, and family businesses have flourished from one generation to the next. Economic times for people in Country A can be uncertain, and resources can be scarce one year and abundant another due to mother nature. The people in Country A have learned to stockpile some supplies when they can and share with their neighbors during hard times. What type of economy does this country have?
Traditional economy
Define free trade.
Trade without restrictions.
Match the definitions to their correct term: Investment account for retirement. Money placed into it can be deducted from your taxable income.
Traditional IRA
Define embargo.
When a country actively blocks or imposes a political agreement that limits a foreign nation's ability to import or export goods.
Match the term to the correct definition: Franchise
a fee in exchange for the right to use the parent companies name, business model and products
Match the term to the correct definition: Supply Curve
a visual representation of the amounts of good supplied at different prices
Country C's government financial planners met to discuss how the country could best use its natural and man-made resources to produce and distribute a product. During the meeting the government financial planners agreed to use their limited resources to produce textiles instead of using their natural resources for another product. The government financial planners informed the factories, and allocated the resources they would need to produce the product. The factories were given a quota and told to only produce the specified amount of the product and where to ship the product. What type of economy does this country have?
command economy
Match the term to the correct definition: Inelastic Supply
companies find it hard to alter their production levels in a timely manner
Match the term to the correct definition: Multinational Corporations
companies that operate in multiple countries
Match the term to the correct definition: Supply
determines how much of a good producers are able to generate and offer sale per period, at each possible price
Match the term to the correct definition: Choice
making a decision concerning how we will spend our time, money, and resources
Match the term to the correct definition: Elastic Supply
manufacturers can increase production without an increase in cost or a delay
Match the term to the correct definition: Price Ceiling
maximum price that can legally be charged for good or service
Match the term to the correct definition: Scarcity
the idea that our resources are limited but our wants and desires are unlimited
Match the term to the correct definition: Price Floor
the minimum price that can legally be charged for a good or service
