Unit 2 Test 82%

_____ buy goods or services they want or need. Businesses Producers Consumers none of the above

Consumers

_____ is the method of determining what a business will get in exchange for its products. Market Command Pricing Supply

Pricing

_____ choose a price at which to sell goods and services. Businesses Producers Consumers none of the above

Producers

_____ is how much the market can offer at different prices. Production Equilibrium Supply Demand

Supply

A market economy is not based on _____. a vote having no choices the public personal choice

a vote having no choices

The distribution of a good or service is called

allocation

Because entrepreneurs need to buy products to keep their businesses running, other businesses are needed to meet these needs. This is an example of _____. demand for products taxes new technology self-confidence new business

demand for products

A financial system in which there is a careful supervision of resources to prevent too much spending or excess is called a(n)_____. spreadsheet fixed income economy bank account

economy

The point at which supply equals demand is called

equilibrium of price and quantity

Insurance is an example of a(n) _____. fixed cost opportunity cost variable cost none of the above

fixed cost

If there is a high supply for a product, then production would be _____. decreased increased the same none of the above

increased

Income received by households through the lending of their money to corporations and business firms is an example of _____ income. labor rental interest none of the above

interest

Salary is an example of _____ income. labor rental interest none of the above

labor

If a business has unhappy customers or unhappy employees, it is likely that the business will also make

less money

Unhappy employees equal

less profit

There are ____ in every economy that are used to produce the goods and services that people want and need.

limited resources

If a business has happy customers or happy employees, it is likely that the business will also make

more money

Supplies are an example of a(n) _____. fixed cost opportunity cost variable cost none of the above

none of the above

Choosing to take the day off over going to work is an example of a(n) _____. fixed cost opportunity cost variable cost none of the above

opportunity cost

An example of consumer spending when calculating the GDP using the expenditures approach is _____. purchase of software purchase of weapons for the military rent none of the above

purchase of weapons for the military

Spending money on medical expenses is part of this expenditures approach for calculating the GDP. gross exports sum of government spending gross imports sum of all the country's businesses spending on capital consumer spending

sum of government spending

There will be a higher equilibrium price and lower quantity if _____. supply decreases and demand increases supply decreases and demand stays the same demand increases and supply stays the same supply increases and demand decreases

supply decreases and demand stays the same

Fixed costs are _____. the costs related to the product that have to be paid regardless of the amount you sell the costs that change depending on a company's performance the costs resulting from a business owner's choice when selecting one thing over another and how it will impact the business none of the above

the costs related to the product that have to be paid regardless of the amount you sell

Opportunity costs are _____. the costs related to the product that have to be paid regardless of the amount you sell the costs that change depending on a company's performance the costs resulting from a business owner's choice when selecting one thing over another and how it will impact the business none of the above

the costs resulting from a business owner's choice when selecting one thing over another and how it will impact the business

Variable costs are _____. the costs related to the product that have to be paid regardless of the amount you sell the costs that change depending on a company's performance the costs resulting from a business owner's choice when selecting one thing over another and how it will impact the business none of the above

the costs that change depending on a company's performance