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