Economics - Unit 2: Economic Roles

You are running a business, and each good that you produce costs $1.50. In order to earn a profit, you could choose a price of _____ for your product.

$2.00

Select the items that describe labor.

earns wages or salaries a human resource and factor of production used to produce goods and services includes teachers, pilots, and doctors

The government defines, establishes, and ---- property rights.

enforces

The Federal Reserve helps protect people who borrow money to pay an expense by _____.

enforcing the Truth in Lending Act

Select a form of money not used in the United States.

euros

Ben wants to sell his used couch to Pam. Ben and Pam will trade the couch for money, if both individuals expect to _____.

gain

Both the satisfaction of creating new products and the possibility of earning money are _____ for an entrepreneur.

incentives

When you use paper money to pay for food, the money is a _____.

medium of exchange

When the Federal Reserve influences the growth of the money supply, it is carrying out

monetary policy

Open-market operations are when the Federal Reserve buys and sells securities to influence the _____.

money supply

When people buy something, they value ------ it than it costs them. But, when people sell something, they value it -------- than the payment they receive.

more ; less

productive workers are likely to be of greater value and earn higher wages than productive workers.

more ; less

Select the items that describe potential benefits of providing intellectual property rights.

more innovations more economic growth more job opportunities more sales to other countries

Select all the items that producers use to make goods and services.

natural resources human resources capital goods

When you compare the prices of two different pairs of shoes, money is a _____.

unit of account

Both trading and bartering _____.

are voluntary exchanges

Select all the items that describe a kind of market participant.

consumer producer entrepreneur labor

A movie writer can ---- his movie script in order to benefit financially from his creation.

copyright

If an empty building costs nearly a million dollars to purchase, which organization would likely be the most able to purchase it?

corporation

Select all the items that describe factors that market participants face as part of the decision process.

costs and benefits incentives and disincentives constraints and rules

To help the economy grow, the federal government can _____.

decrease tax levels

Entrepreneurs and other sellers ---- when buyers purchase the product they sell at prices more than high enough to cover the costs of production.

earn profits

Select the items that describe the benefits of coins and paper money.

easy to carry valuable easily divisible

Factors that improve human capital and can increase labor productivity include choosing a career, training, and _____.

education

Money encourages specialization by decreasing the .

exchange costs

A market _____.

exists whenever buyers and sellers exchange goods and services

Select the items that describe possible effects of incentives for political leaders.

favor programs with immediate benefits implement policies that favor a small, powerful group provide policies whose costs outweigh the benefits

Select the items that people consume to satisfy their economic wants.

goods ; services

What person or organization will usually supply goods and services when it appears that the benefits to society outweigh the costs to society?

government

Select the items that describe incentives for an employee to accept a job offer.

high wages good benefit package safe work environment

Select the items that can result in higher interest earned.

higher interest rate higher balance

Individuals and companies respond to incentives in order to allocate their scarce resources in ways that provide the possible ------ returns to them.

highest

Gum and candy are often for sale right next to cash registers. This buying situation encourages consumers to use their money to make ---- purchases.

impulse

By establishing property rights, governments provide ----- for people to create new goods and services.

incentives

Select the items that are jobs of the Federal Reserve

increase personal and sales taxes manage risk in the financial markets watch banks and protect customers provide banking services influence the money supply

Select the items granted by the government to provide intellectual property rights.

intangible assets copyrights trademarks patents

The cost of borrowing money is called _____.

interest

Sally works for a big corporation because she wants to earn a high salary. Fred works for a not-for-profit organization because he wants to help people in medical need. This illustrates that the goals of different organizations affect _____.

the benefits of the people who work for these businesses

Employers are willing to pay ----- and ---- to workers, because they expect to be able to sell the goods and services at prices high enough to cover the costs of production.

wages ; salaries

Select the items that describe voluntary exchanges.

trading money for a car

Select the true statement(s) about entrepreneurs.

A small business owner may be an entrepreneur and a producer. Entrepreneurs believe they can make a profit from their invention. Entrepreneurs usually work longer hours than most people.

Select the statement that is not true about bartering.

Bartering encourages specialization.

Simple interest is calculated as a percentage of the bank balance and interest already earned.

False

Two Wheel Bicycle Company increased its market share from 10 percent to 25 percent during one year. Select statements that could be true as a result of this increase.

Two Wheel Bicycle manufactures more bicycles. Employees get a raise. Two Wheel Bicycle increases its advertising budget. The owner opens another Two Wheel Bicycle store.

Select the economic questions that involve the consumer.

Who will consume the goods and services? What goods and services will be produced? How will the goods and services be produced?

A budget deficit is the _____.

amount overspent in a certain time

Money makes trading easier by replacing ------ with transactions involving paper money, coins, and checks.

bartering

Select the items that are considered low risk investments.

bonds bank accounts

Select the items that support the statement: Consumer preferences affect how producers make goods.

buying organic products and non-GMO foods purchasing products made from recycled materials consuming food made in a fair trade way

Select all the items that describe an entrepreneur.

can invent new products can start new businesses takes on risks can create jobs

Corporations have more ways to raise ---- to pay for productive resources than small firms or not-for-profit organizations.

capital

Consumers influence how goods and services are made by _____.

choosing which goods and services to buy

The interaction between buyers and sellers in the marketplace leads to goods and services being distributed by _____.

price

Select all the items that are public goods or services.

roads education military police force

A consumer uses goods and services to _____.

satisfy economic wants

Select the producers that have earning profits as a main goal.

small firms corporations

Select the organizations that use grants as a means to raise money.

small firms not-for-profit organizations

When money is deposited in the bank for later use, it is a _____.

store of value

Select all the items that describe the jobs of money.

store of value unit of account medium of exchange

The two main sources of government revenue are

taxes and borrowing

The Federal Reserve is the central bank of _____.

the United States