Economics Final, Economics Quiz 1, Economics Test (1), Economics Quiz 2, Plato Economics
What is scarcity?
fundamental economic problem, limited resources
Does a Vertical Merger increase of decrease competition?
increase
How did Coco get her name?
men at bars
What are the roles of a Entrepreneur?
marketing themselves and products, manage scarce resources, driving force behind Free Enterprise System
consumer taste (d)
marketing, style
The best way to describe the US economy is _____.
mixed economy
Sarah owns a book store. She is planning to stock some books by a famous author. But she has tight budget, and she is not sure whether to stock all the previous books by the author or only the latest ones. What is the scarce resource in this situation?
money
Which market structure predominantly uses product differentiation to attract consumers?
monopolistic competition
Define a Market Economy.
more choices, innovation is valued, no needs are guaranteed
What factors are based in Economic Security?
social security, welfare
Define # of Consumers.
the # of consumers of a product changing the demand
Define # of Sellers.
the # of firms (more or less of them selling) changing supply
What factors are based in Economic Freedom?
the ability to choose your own occupation/employer, the ability to choose what you spend your money
What is the purpose of the Sherman Antitrust Act?
to break up monopolies in the market
Ally just bought a plane ticket. She notices that the fare includes a September 11 Security Fee. What is the government's purpose for imposing this fee?
to pay for security at airports
Why did WWE change their name to WWE?
to signify a new era
How many award winning games has Todd Howard created?
4
The idea of full employment allows for ___% of people to be out of work.
4%
What was Nike's original name?
Blue Ribbon Sports
All of a country's citizens pay the ______ an income tax that is 7% of their annual earnings. This tax is a(n) _______ tax.
Government, A proportional
Economic stability is a situation in which the economy experiences constant ____ and low _____.
Growth, Inflation
Why was Friedrich von Hayek against government intervention in an economy?
He believed It would reduce economic freedom.
John owns an apple orchard and makes a living by selling apples. He protects his land with utmost care and takes all the necessary security measures. What motivates John to protect his land?
Property Rights.
Jack has to pay _______ tax to the government for his house. This type of tax is _______ tax.
Property, a direct
If a society decides to produce consumer goods from its available resources, it is answering the basic economic question.
What to produce.
Which phrase describes the substitution effect?
buying cheaper alternatives when a product becomes expensive.
What does a Consumer do in Cooperatives?
buys in bulk to bring down cost
how can international trade agreements lead to economic growth?
by creating jobs in the export industries & by opening up new markets for domestic goods
What is Elastic Demand?
change in price leads to change in demand
elastic demand
change in price leads to change in demand
Define Change in Expectations.
change is expected and changes demand based on the product (weather, etc)
What is Voluntary exchange?
choose not to participate
Define a Command Economy.
class struggle, lots of econ security, prices relatively remain the same
An economic system where a central authority controls decision-making is a _____ economy.
command
An economy where the government as all decision-making responsibilities is called _____.
command
Henry lives in a country where the government gives many incentives to produce military goods and few incentives to produce consumer goods. Henry knows a more efficient way to finish his task at work and feels like sharing it with his boss. However, he has no incentive to share it. Which type of economy does Henry most likely live in?
command
Which of the following are characteristics of an economic union?
common trade regulations free movement of capital and labor free movement of goods
Which factors decrease because of protectionism?
competition goodwill with trade partners importation of goods
Gretchen earned $500 from her summer job. She made a list of things that she wants to do with the money she earned. She thought of spending $100 to buy a guitar amplifier, enrolling in a ballet class for $200, buying new clothes worth $100, and giving her mom a silver necklace worth $100. When she went to buy the amplifier, she found it cost around $150. She knew that she couldn't change the fee for the dance classes. So she had to adjust the budget for her clothes or her mom's gift. In the end, she decided she would buy one pair of jeans instead of the two pairs of jeans she had planned. What would be the opportunity cost in this situation?
"In the end, she decided she would buy one pair of jeans instead of the two pairs of jeans she had planned."
These graphs represent the price and output quantities of purses under perfect competition and monopoly. How much more or less will Jackie pay for a purse in a perfect competition than in a monopoly?
$20 less https://i.imgur.com/nUC4JB2.png
What makes Elasticity? (questions)
- can it be delayed? - are there substitutes? - does purchase use too much income? - scarcity?
How much did Ray Raymond sell Victoria's Secret for?
1 million
How old was Hughes when he became a millionaire?
18
Identify if the following are Discretionary spending or Mandatory spending. 1) The federal government purchases new defense equipment 2) Gloria is a 70 year old retired woman. She pays her expenses with the income she receives from the government. 3) Nick receives a weekly amount from the government because he became unemployed when his company cut costs by laying off employees. 4) The federal government funds a new research project. 5) The government is planning to build more highways. 6) Jill receives inpatient hospital services even though she cannot afford them.
1) Discretionary Spending 2) Mandatory Spending 3) Mandatory Spending 4) Discretionary Spending 5) Discretionary Spending 6) Mandatory Spending
Match each situation with the agency or act that would address it. 1) Casey applied for a home loan, but the bank rejected her application because it found some problems in her credit report. She wants to know what those problems are. 2) Shoppers discover that the breakfast cereal they bought is contaminated. 3) John is pestered by marketers who keep sending him messages on his phone trying to sell him products.
1) Fair Credit Reporting Act 2) Food and Drug Administration 3) Federal Communications Commission
Match each agency with its purpose. 1)inspection and approval of food products 2)regulation of pollution and conservation of energy 3)protection and safety of workers
1) Food and Drug Administration 2) Environmental Protection Agency 3) Occupational Health and Safety Organization
Identify whether each acquisition is allowable under eminent domain. Label them Yes or No if they are allowable under Eminent Domain. 1) The local government wants to purchase the Connolly family's farmland to build a car showroom. 2) The state government plans to purchase a local school building to build a radio tower. 3) The federal government plans to take over Mr. Cooper's unused plot of land without any compensation to build a stadium. 4)The state government plans to purchase a few occupied houses on behalf of a multinational corporation that wants to develop the land into a public park.
1) No 2) Yes 3) No 4) Yes
Mach each scenario with the government agency it involves 1) Dwayne's company has clearly marked each container to indicate what chemical it contains and the threat it poses. 2)Ryan's new car is certified to meet federal emission standards. 3)Lisa finds that her favorite brand of yogurt has been taken off the shelf after the company ordered a recall.
1) Occupation Health and Safety Organization 2) Environmental Protection Agency 3) Food and Drug Administration.
Identify the type of money used for each transaction. 1) Karen bought a bike by exchanging it for her silver reciept. 2) Luke paid six apples for two dozen eggs. 3) Chris bought a bagel with coins issued by the government.
1) Representative money 2) Commodity money 3) Fiat money
Match each situation with the method of government intervention used to rectify it. 1) People have too much money, and there is a danger of inflation 2) The GDP has fallen to an all time low and there is low demand for most goods. 3) Few farmers produce cotton because profits are at equilibrium price. 4) Prices of staple foods have shot up because of shortages after an earthquake.
1) contradictory fiscal policy 2) expansionary fiscal policy 3) price floor 4) price ceiling
Match each economist to the scenario that exemplifies his economic philosophy. 1) A small Caribbean island's economy depends on tourism. However, in recent times, it has seen much less economic activity. Its government decides to let the market correct the situation. 2) Flour prices have risen in a country where bread is a staple part of the diet. As a result, bread prices have risen tremendously, in an effort to make bread affordable for its citizens, the government has limited how much bakes can charge for bread.
1)Hayek 2)Keynes
Arange the economic systems from least to most government involvement.
1)Market Economy 2)Mixed Economy 3)Socialist Economy 4)Communist Economy
What factors are based in Full Employment?
1-4% unemployment is acceptable
What is Kylie's net worth?
11.9 million
Where is the Trump International Hotel and Tower located?
Chicago
What percent of unemployment is unacceptable?
6%
How many employees does Apple have in the US?
66,000 employees
What is Jeffery Bezos's net worth?
70.3 billion
The government of a country increased the minimum wage from $21 to $30. A factory owner had to lay off some of his workers because he could not afford to pay all of them. How many people lost their jobs?
8 workers lost their job. See screenshot.
How many workers would producers be willing to employ at a wage of $40 per hour?
8 workers. see screenshot
What is the net worth for Steven Spielberg's movies?
9 billion
Which statements are true according to the law of supply?
A decrease in price leads to a decrease in supply. An increase in price leads to an increase in supply.
The table shows the federal government's budgeted revenue and expenditures from 2001 through 2010. Identify the years in which there was a budget deficit.
A deficit is when the revenue is less than the expenditure.
NOT SOLVED! Which of the following are non-price determinants of supply?
A) new producers entering the market B) government taxes and subsidies C) effect of mass media advertising D) cost of the product or services E) future expectation of prices
A small community uses cattle as money. A man from the community traded five cows for a plot of farmland. Which characteristic of his money allowed him to make this transaction?
Acceptability
According to ______, self-interest and competition act as an ________, guiding firms in a market-based economy.
Adam Smith, invisible hand
The North America Free-Trade ______ is an agreement among North American countries. The US government benefits from this agreement because it expands the market for American _____ by giving American ______ easy access to North American markets.
Agreement, products, exporters
Which trade agreement or union does not include the United States?
EU
What was the name of the first company before Berkshire?
Buffet Partnership Inc.
What is the first company Marion made parts for?
Caterpillar, Rolls Royce, Navy, Army, etc.
Henry lives in a country where the government gives many incentives to produce military goods and few incentives to produce consumer goods. Henry knows a more efficient way to finish his task at work and feels like sharing it with his boss. However, he has no incentive to share it. Which type of economy does Henry most likely live in?
Command Economy.
Mario paid three bushels of rice for three boxes of wool at the market. What type of money did Mario use for this exchange?
Commodity
People who want to obtain _____ from financial institutions can use their _____ rights to do so
Credit, Property
What is dumping?
Dumping is exporting goods at prices that are lower than their value.
Classify each action as contractionary or expansionary monetary policy.
Expansionary - Reducing federal funds rate, reducing the required reserve ratio. Contractionary - Selling government securities, increasing the discount rate.
Susan is afraid that someone stole her identity using the details she provided for an online credit card application. Which agency can she complain to?
Federal Trade Commission
What allows consumers to receive goods and services in a non-price rationing system?
First come first serve.
What is FES?
Free Enterprise System
The economy of country Y has experienced increased unemployment and reduced GDP for six months. The government therefore decides to implement fiscal policy that increases _____ and reduces ______.
Government spending, Taxes
Which basic economic question determines how a society will produce goods and services?
How can available resources be used efficiently?
What basic economic question determines how a society will produce goods and services? a) Who consumes the goods and services? b) How can available sources be used efficiently? c) What goods and services are produced?
How can available sources be used efficiently
Where did Mark Cuban graduate from?
IU
A survey conducted recently in China showed that in the last two years, investments in businesses increased by almost 75%. The same survey also concluded that people became wealthy by investing in businesses, and this motivated other people to invest more in their respective businesses. What most likely triggered this increase in investment?
Incentives
The economy of a country has shown signs of overheating, such as high inflation rates. The government decides to implement fiscal policy. Which action should it take to achieve the nation's economic goals?
Increase taxes
The price of mangoes is currently $5.00 per pound. At this price, producers are supplying 4,000 pounds of mangoes. Point C on the graph shows the current equilibrium price and quantity. To which point will the equilibrium shift if the demand increases suddenly because of a non-price determinant of demand?
It will shift to point B since...see screenshot
Mark wants to sell his condo. Jack and Nick are two prospective buyers. Jack is willing to pay the amount quoted by Mark, while Nick is unable to pay such a high price for the condo. Because Jack is able to pay the asking price, Mark sells his condo to Jack. In which type of economy does this transaction take place?
Market economy
What type of economy is an economic system in which private businesses can operate freely with minimal state control?
Market economy
In a certain country, private enterprises provide various goods and services. But the government provides free public transportation and electricity to its citizens. Which type of economy exists in this country?
Mixed Economy
Which market structure has a single company or seller in a market with many barriers to entry?
Monopoly
What company was Arthur O. Sulzberger Jr. the chairman of?
New York Times
Jack, Jamie, Ronnie, and Stephan own the only computer software manufacturing companies in the country. When Jack increases the price of his product and advertises extensively to promote it, the other three manufacturers immediately increase their prices and launch promotional strategies. What type of market structure do these four companies operate in?
Oligopoly
Where did the name HARPO come from?
Oprah spelled backwards
A communist country decides to give its people more economic freedom in an attempt to improve its failing economy. What outcome is the government most likely worried about in this case?
People will want more political freedom.
Which point on the graph indicates the lowest quantity supplied of goods?
Point A which is the lowest point on the supply line.
This graph shows the demand and supply of a particular brand of shampoo in the market. Which point on the graph indicates a surplus production of shampoo?
Point D which is the highest point on the supply line.
Which point on the demand curve represents the highest quantity demanded?
Point D which is the lowest point on the demand line.
Which term is defined as the maximum legal price for a good or service?
Price ceiling
Reserve Banks are _______ that help the ______ carry out its duties.
Regional Banks, Central Bank
With a _____ tax, the tax rate decreases as income increases. _______ individuals bear a greater burden with this type of tax.
Regressive, lower-income
Who helped Walt Disney with Disneyland?
Ronald Reagan
Where was the first Victoria's Secret opened at? And what year did it open in?
San Francisco, California 1997
Explain how scarcity and the paradox of value are connected?
Scarcity is how rare something is. The reason these are connected is the paradox of value is based off of scarcity, not utility.
Mark is an excellent cook. He does not have any formal training but learned to cook by following the recipes of several famous chefs and his mom. Every weekend, he invites friends over for dinner so he can try new dishes and get honest feedback from his friends. Mark wants to start his own restaurant someday because he thinks he would be successful and become wealthy. Which of Adam Smith's ideas made Mark think of starting a restaurant?
Self interest
Mila is at a flea market. She has $50 in her wallet. She decides that she will spend $15, $20 on a pair of jeans, $5 on a T-shirt, and $10 on sometimes to eat. She likes a one-of-a-kind, but the seller is not ready to sell it for less than $8. She thinks of five ways to deal with this situation. Which two choices indicate a trade-off? a) She will try to find another seller selling the T-shirt for a lower price b) She will give up on the T-shirt and use the money to buy better jeans c) She will use some of the money she received from her aunt on her birthday d) She will pay the seller $5 and promise to pay the remainder on another day e) She will buy the T-shirt for $8 and not order juice at lunch
She will give up on the T-shirt and use the money to buy better jeans & She will buy the T-shirt for $8 and not order juice at lunch
Select the statement that indicates retaliatory protectionism.
Soon after, nation Y increased tariffs on imports of precious metals from country X.
Who is the co-founder of Pixar?
Steve Jobs
Which type of unemployment is defined as people losing their jobs because their skill is no longer in demand?
Structural
Who makes decisions regarding changes in the discount rate?
The Board of Governors
Which factor determines who a society will produce goods and services for?
The Economic system in society.
Some of the money that people deposit into a bank eventually becomes an injection into the economy when
The bank makes loans
A start-up company just acquired a big project. The project requires a lot of money. The company must hold off on building its new office to complete the project. What was the reason for the company's decision? a) The marginal benefit of completing the project outweighs the marginal cost of the project b) The marginal cost of building a new office is equal to the marginal benefit of completing the project c) There is no practical marginal benefit in building a new office for the company in the long run
The marginal benefit of completing the project outweighs the marginal cost of the project
Explain the purpose of the Production Possibilities Frontier and how it guides economic decision making.
The purpose of this shows if you are using your time efficiently enough. This guides economic decision making by telling you how much time you have left.
Which statement about progressive taxes is true?
The rate increases as income increases.
How does the rate of a proportional tax change with income?
The rate remains the same, even if income increases or decreases.
What is the difference between trade-offs and the opportunity cost of a decision?
Trade-offs are all the other alternative things you could be doing, whereas opportunity cost is the second best alternative to your initial goal.
Select the statement that shows how Alvaria, a fictional country, practices protectionism.
Traders pay a 25% tariff on Colandian beef imported into Alvaria.
Jamie took a school trip to Africa to study the economy. In one village, he saw that the people performed only unskilled activities such as hunting and fishing. Also, they did not use money to acquire goods. Instead, they simply exchanged goods with each other. What type of economy does this village have?
Traditional Economy
Which government agency is responsible for protecting the nation's transportation systems to ensure freedom of movement for passengers and commerce?
Transportation Security Administration
When does a natural monopoly arise?
When economies of scale occur over a relevant range of output
Cassandra is 80 years old. Last month, she broke her leg while biking with her grandchildren. She was admitted to a hospital for surgery. Which card should she show them to get benefits?
a Medicare insurance card
What is an incentive?
a gesture or a reward to increase productivity or motivation
What is a General Partnership?
both responsible for company/etc
What is a Vertical Merger?
a merger between firms in the same industry but at different stages of production process, one buys or sells something from or to the other
What is a Horizontal Merger?
a merger between firms that operate in the same space, same kind of industries
The table shows the federal government's budgeted revenue and expenditures from 2001 through 2010. Identify the years in which there was a budget surplus.
a surplus is when the revenue is greater than the expenditure.
Which phrase defines a demand schedule?
a table showing the quantity demanded for a good at different prices
What is a service?
actions or activities provided by other people
What is a Trade Offs?
all collective alternatives
Define Substitute Good.
alternative to another good affects demand
Define Taxes.
amount (more or less) of taxing
What is a free trade agreement?
an agreement that removes trade barriers, such as import tariffs and quotas
Define what the Law of Demand is.
as the price of a good/service increases, consumers' demand for the good/service will decrease, and vice versa
What is a Limited Partnership?
at least one is not active in day to day operations for company/etc
What is not an Economic Goals?
consumer
Economic products designed to satisfy people's wants and needs are called _____.
consumer goods
What are the factors that affect Demand?
consumer income, consumer taste, substitute goods, complimentary goods, expectations, # of consumers
The idea that people rule is markets is called _____.
consumer sovereignty
Define Consumer Income.
consumers' income changes demand based on what they buy
What are Price Ceilings?
control how high prices get (ex: rent control in larger cities)
What are Price Floors?
control how low prices get (ex: minimum wage)
What are the factors that affect Supply?
cost of inputs, subsidies, productivity, # of sellers, taxes, technology, expectations, regulations
Does a Horizontal merger increase or decrease competition in the market?
decrease
What are some disadvantages of a Corporation?
difficulty of gaining charter, stockholders have little to say, double taxation, government regulation
What are some advantages of a Partnership?
easy to establish, management, taxes, capital raising, more efficient
What are some advantages of a Corporation?
easy to raise capital, hire managers, limited liability, unlimited life
What are some advantages of a Sole Proprietorship?
easy to start up, management, no profit sharing, ease of backing out
The opportunity to choose your occupation is considered a _____.
economic freedom
What is an advantage of a pure market economy?
economic freedom
What is Beyoncé's scarce resource?
entrepreneur
The people that manage scarce resources in the FES are _____.
entrepreneurs
What factors are based in Economic Equity?
equal pay for equal work, 20th century advancement in rights
What are trade-offs?
everything you could be doing with your time
What do Non Profit Organizations do?
help people (schools, churches, hospitals)
What is one disadvantage of the command economy?
fewer choices
Which of these is not a role or government in the FES? a) protector b) regulator c) freedom advocate d) provider
freedom advocate
What are the roles of a Consumer?
freedom to choose goods you want, supply (prices) dependent on your demand, consumer sovereignty (power)
Which phrase defines complementary goods?
goods used in combination with other products
complements (id)
goods used together
Define Regulations.
gov increases or decreases regulations
Define Subsidies.
gov pays you
Who acts as the entrepreneur in a command economy?
government
What are Private Property Rights?
government doesn't control scare resources
John is a producer in a perfectly competitive market structure. Identify the point where he will set his output.
https://i.imgur.com/FNGj1cw.png
Indicate the point where a monopoly will set its output.
https://i.imgur.com/dKz6w7C.png
Identify whether each scenario describes a drawback or an advantage of trade regulation.
https://i.imgur.com/jXgUHUJ.png
The sum of the skills, abilities, and motivation of people is called _____.
human capitol
What do Professional Associations do?
improve work conditions, skill levels, public perception
investing in physical capital
increase in production speed and quality
The drop in value of a certain currency is called _____.
inflation
What factors are based in Price Stability?
inflation vs. deflation, competition
Which of the following scenarios would the National Highway Traffic Safety Administration be involved in?
investigating the use of a faulty gearbox in a semitrailer modifying the fuel efficiency standards for new cars
What is good?
items that satisfy human wants and provide utility
Define a Traditional economy.
jobs passed down, not a lot of innovation, not always looking for improvements, usually in underdeveloped countries
What does competition do?
keeps prices down
What are the factors of production? (4)
land, labor, capital, entrepreneurship
What are some advantages and disadvantages of a Non Profit Organization?
limited liability, unlimited life
Which of the following is a characteristic of money?
limited supply
Some of the money that people deposit into a bank eventually becomes an injection into the economy when the bank _____.
makes loans
In a perfect competition, there are ________ buyers and sellers of _________ products, and there is ________ entry and exit in the market.
many, homogeneous, free
An economic system where private citizens control the factors of production is a _____ economy.
market
Mark wants to sell his condo. Jack and Nick are two prospective buyers. Jack is willing to pay the amount quoted by Mark, while Nick is unable to pay such a high price for the condo. Because Jack is able to pay the asking price, Mark sells his condo to Jack. In which type of economy does this transaction take place?
market
Define Consumer Taste.
marketing affecting consumers' taste in what they buy
What factors are based in Economic Growth?
new markets, new goods, new production
What is economic growth?
new markets, new goods, new production
Which is not a way to attain economic growth?
new population growth
Define Technology.
new technology, machine, chemical, industrial process
What is opportunity cost?
next best alternative
inelastic demand
non-proportional change in price or demand
What is Inelastic Demand?
non-proportional change in price/demand ratio
Companies under _________ market structures are interdependent. ________ is a secret agreement among companies that may result from this interdependence.
oligopolistic, Collusion
The price of it's next best alternative good is called _____.
opportunity cost
What represents the value of the second-best alternative that person gives up when making a choice?
opportunity cost
Define a Sole Proprietorship.
owned by one person
Define a Partnership.
owned by two or more people
What are some disadvantages of a Partnership?
pay for others mistakes, limited liability for investment
Define what Demand is.
principle that describes a consumer's desire or willingness to pay for a price of a specific good or service
Glen found three brands of earbuds that have the specifications he wants. The three pairs of earbuds looked a bit different from each other, but Glen knew they would perform similarly. Still, each company offered its earbuds at a different price. What economic concept does this situation represent?
product differentiation
Define a Mixed Market.
production is shared between private and public sectors, has factors of other economies mixed in
What is the Law of Supply?
production will increase the more people are willing to pay
The driving force behind the FES is _____.
profit motive
What do Business Associations do?
promote business, better business bureau
What do Labor Organizations do?
promote labor
John owns an apple orchard and makes a living by selling apples. He protects the land with utmost care and takes all the necessary security measures. What motivates John to protect his land? a) family obligations b) government orders c) property rights
property rights
What are the roles of the Government?
protector, provider/consumer, regulator, promoter of goals
Competition does what?
protects goals
The role of the consumer in the FES is to _____.
provide demand
What does a Service do in Cooperatives?
provide service
consumer income (d)
raises, reduction in force (RIF)
A high school has started a community service program, student must participate in volunteer activities, such as helping at an after-school program, visiting residents at a nursing home, and planting trees. The students who logs the most service hours will receive a special designation on their diploma. What incentive did the school offer the students in this case?
recognition at graduation
what describes investing in human capital?
recognizing the need to improve the customer experience by providing education/training/etc to employees
The GDP of a country hasn't improved in the past three years. The central bank decided to take a measure that will increase the amount of money people spend on goods and services. Which step should the central bank take?
reduce interest rates.
Which term is defined as the government setting the maximum amount that a property owner can charge a tenant?
rent control
What is a trade off?
replacing one resource with another resource to satisfy a want
What do Labor Unions do?
represent workers interests, collective bargaining
During wartime, a small country issued certificates to the public to raise money. Each certificate promised to pay the holder a certain amount in silver. After the war was over, the population continued exchanging these certificates instead of converting them to silver. What type of money did this economy use?
representative
Which tax is an indirect tax?
sales tax
The fundamental econ question deals with how societies deal with _____.
scarcity
What does a Producer do in Cooperatives?
sell products to large buyers
Define a Corporation.
separate legal entity
# of consumers (d)
shifts whole market curve, more sales
How many years has Timothy Kuniskis worked for Dodge?
since 1992 (25 years)
substitute goods (d)
swapping another good for the same utility, butter vs margarine
change in expectations (id)
technology, dvd vs vhs
*Which factor determines who a society will produce goods and services for? a) the economic system in society b) the available resources in the society c) the population of the society
the available resources in the society
What is Marginal Utility?
the benefit gained from consuming one additional unit of a good or service
What is economics?
the branch of knowledge concerned with the production, consumption, and transfer of money
Define Expectations.
the future price of a product
Which phrase describes the income effect?
the impact of price on consumers' purchasing ability and decisions
What is the federal funds rate?
the interest rate that banks charge each other for overnight loans
What is Elasticity?
the responsiveness of a good to change in price or supply
What is eminent domain?
the right of a state or national government to make public use of a private property.
which defines gross domestic product (GDP)?
the total investments made for the manufacture of domestic products and services in one year
What is Supply?
the willingness of producers to make goods
An economic system where the custom dictates he economic and social behavior is a _____ economy.
traditional
Which economy has jobs passed down hereditary?
traditional
What are some disadvantages of a Sole Proprietorship?
unlimited liability, raising capitol, size and efficiency, little experience, employees, limited life
How much enjoyment you get out of a product is described as its _____.
utility
The _____ of a CD player can be expressed in dollars and cents.
value
The act of buyers and sellers freely conduction business in a market is called a _____
voluntary exchange
What factors are based in Economic Efficiency?
waste hurts you, prevents future use
The government supplies economic security through programs like _____.
welfare
What is Economic Freedom?
what to buy and from whom
unit elastic
when a change in price generated a proportional change in demand
What is Unit Elasticity?
when a change in price generates a proportional change in demand
Define Complimentary Good.
when another good compliments the other and are most likely bought together
What is a Surplus?
when product or service's demand does not exceed its supply in a market
What is a Shortage?
when product or service's demand exceeds its supply in a market
What is Market Equilibrium?
where supply and demand are equal, used so we don't waste resources
Define Cost of Inputs.
where the costs of supplies/inputs changes the supply
How many bushels of wheat are wholesalers willing to buy at $18 per bushel?
wholesalers are willing to buy 42 thousand bushels. see screenshot
Define Productivity.
worker or management efficiency changes supply
What is a Profit Motive?
you make your own money by your work, you must improve product to advance
