econ unit 1

Which of the following scenarios best describes a traditional economic system?

A farmer who uses a one-acre farm to grow all the vegetables his family will need over the course of a growing season.

Which of the following scenarios best explains scarcity?

A man has $20 but wants to take his girlfriend to a fancy steak restaurant where he will need $70.

Which of the following scenarios is NOT based on economic perspective?

A young man bought an old car without giving much thought to the costs associated with needing to fix the vehicle.

Which of the following is NOT characteristic of a market economic system?

lack of private ownership of resources

Which of the following was one of the first three departments of the early American government?

the Department of State

The necessity of a "double coincidence of wants" is a major problem with ___________.

the barter system

When a shopper makes a rational choice, he or she ______________.

picks the item that represents the greatest value

What was Thomas Jefferson's argument against the creation of a national bank?

The government did not have the constitutional authority to do so

Why might the states be upset at the federal government for paying off their debts?

The states might not want to be answerable to the federal government and therefore be put in a weaker position.

What is the importance of Karl Marx and Friedrich Engels?

They preached the idea that capitalism was inherently flawed and that society will only improve when the workers take control of the economy.

Who was one of the leading opponents to Alexander Hamilton's proposal for a national bank?

Thomas Jefferson

Which philosopher is most associated with the market economy?

Adam Smith

What country or region best exemplifies a traditional economy?

Amazon rainforest of South America

Concepts in the market economic system stem from the _____________.

Enlightenment

Which government agency deals most directly with consumers and their rights and protection?

Federal Trade Commission

The creators of the mixed economic system came from ________.

Great Britain

GDP stands for ______________.

Gross Domestic Product

What led people to describe the first constitution as the "Articles of Confusion?"

It did not give the federal government the power to operate the country effectively.

Where can you find the agency responsible for putting together business cycle information - in particular, when they peak and plummet?

It is a private company not found within the government

_____________ is the term used for the overvaluing of property, land, or any other product.

Overspeculation

The depression of 1893 was directly responsible for the growing popularity of the _________.

Populist Party

What country's collapse greatly altered U.S. military spending?

Russia

Which of the following would NOT apply to the GNP of the United States?

a German-based grocery store in Champaign, Illinois

Credit refers to ________________.

a consumer's record of going into and getting out of debt in a faithful and punctual way

The lowest period for a country's economy and GDP is called a(n) _________.

a trough

One of the major causes of the economic downturn of 1819 was __________.

a wave of overspeculation in the western frontier territories

What was NOT part of Hamilton's economic plan?

creation of a new set of bank notes

Consumers have the biggest responsibility to _____________.

educate themselves about the products they are interested in, including the benefits and potential costs or problems

Which of the following is NOT characteristic of a command economic system?

encouragement of the pursuit of wealth

When the economy moves from a trough to a peak, it is said to be in a state of _________.

expansion

What is the purpose of interest?

for the lender to make money in exchange for giving money to those who need it

What aspect of government spending recently increased greatly in the spring of 2010?

healthcare spending

To purchase a ____________, one must have good credit.

house

An increase of paper money into circulation causes __________ or a rise in prices due to the loss of value of money.

inflation

What portion of U.S. spending made up the largest percentage of the 2010 budget?

military spending

The things you miss out on when you decide to spend your money on something else refers to _______.

opportunity cost

The point at which a country's GDP and economy reach top efficiency and is immediately followed by a downturn is known as a(n) _________.

peak

peak - when a country's GDP is at its best recession - a decline of a country's GDP trough - when a country's GDP is at its worst expansion - a growth of a country's GDP

peak - when a country's GDP is at its best recession - a decline of a country's GDP trough - when a country's GDP is at its worst expansion - a growth of a country's GDP

A country's GDP economic peak is followed by a(n) ________.

recession

In the United States, a decline in the economy for six straight months is considered a(n) ____________.

recession

In 1962, President John F. Kennedy made a speech where he spelled out the rights that a consumer has when purchasing something. Which one of these rights was NOT included in Mr. Kennedy's speech?

right to redress

In order for a country's economic condition to be considered a recession, the economy and GDP must be in decline for _______ months.

six

Conflicts between President Andrew Jackson and __________ resulted in a depression.

the Bank of the United States

According to the Articles of Confederation, ____________.

the Congress had little to no power

The end to what war and subsequent agricultural surplus resulted in the depression of 1857?

the Crimean War

Fluctuations along a country's GDP line is known as ________.

the business cycle

Shortly after the Great Depression began, Europe traded less with the United States due to ______________.

the high tariffs passed by the US Congress

Those suffering from the 1873 depression pushed for ___________.

the reissue of greenback dollars used during the Civil War

Economically, the government divides its earning marks into quarters, or every __________ months.

three

What country owns a large portion of U.S. debt?

China

Which of the following is NOT an economic power of the US government under the US Constitution?

Congress can demand all of the state's revenues to be deposited into the national bank.

What was NOT a weakness of the Articles of Confederation?

Congress could negotiate treaties with foreign countries.

Which of the following are major economic issues that affect our lives today? Select all that apply.

Social security Military spending Unemployment Healthcare

Which of the following did NOT weaken the United States economically during the time of the Articles of Confederation?

The Germans established fur trading posts along the Mississippi River Valley.

Which of the following would NOT apply to the GDP of the United States?

an American-based investment firm in Switzerland

What segment of U.S. society represents a threat to the social security system?

baby boom generation

Transactions in a traditional economy are typically done with _________.

barter or trade

gross domestic product - value of all goods made within a country gross national product - value of all goods produced by citizens of a country regardless of what country they do business with business cycle - fluctuations along a country's GDP line of growth

gross domestic product - value of all goods made within a country gross national product - value of all goods produced by citizens of a country regardless of what country they do business with business cycle - fluctuations along a country's GDP line of growth