Economics Units 1-4
Which would be an example of a product with inelastic demand? *
Diapers
An example of a natural monopoly would be *
Duke Energy
Why are entrepreneurs important to a capitalist economy? *
Entrepreneurs start new businesses, offering innovation, jobs, and competition in the market.
Which of the following is not a strength of the market economy? *
It financially supports all of its people equally
Which is NOT a way that the U.S. Government regulates the economy? *
It prohibits competition.
On a stock quote, which column represents the change in the stock price from the previous day's closing price? *
Net Change
An example of a government monopoly would be *
The DMV
Who is NOT included in NAFTA? *
The European Union
A worksheet that helps the company/government know how much to take out of your check to save towards your tax bill is *
W-4
Which of the following is not a basic economic question? *
When to produce?
What is a nation's ration of exports to imports? *
balance of trade
How do consumers exercise their power in the American economy? *
by deciding what to purchase
All of the following are weaknesses of a command economy EXCEPT that it *
can change policy drastically in a short time
Factor of production that includes tools, equipment, machinery, and factories used in the production of goods and services *
capital resources
Cuba is closest to having a.... *
command economy
A good which is purchased in conjunction with another good. If you buy one, you are likely to buy the other to go with it. *
complementary good
An increase in the price of milk causes a decrease in the demand for cereal. These two products are *
complementary goods
Which of the following is a non-price factor that causes a shift in the demand curve? *
consumer expectations, consumer tastes and preferences, and consumer income
Which type of unemployment is described in the following scenario? "You work for a clothing manufacturer that has excessive inventory. You have been laid off until things pick up." *
cyclical
Which type of unemployment is described in the following scenario? "You worked for a company that supplies the automobile industry. Car sales are down and production has slowed. You have been laid off until things pick up." *
cyclical
For most products and services, increased price results in *
decrease in quantity demanded
An item that is economically useful or satisfies an economic want *
good
Who plays the role of protector, consumer, regulator, and promoter of economic goals in the United States? *
government
All of the following are characteristics of capitalism EXCEPT *
government control
Someone's salary before deductions is his/her *
gross income
For something to have value, it must *
have utility
Buying products from another country is *
importing
What would result in an increase in equilibrium price. *
increase in demand, decrease in supply
If a modest price increase has little effect, the demand for that product is *
inelastic
When a price change has no effect on the quantity demanded *
inelastic demand
When a price change has no effect on the quantity supplied *
inelastic supply
Location or other mechanism that allows buyers and sellers to exchange a certain economic product *
market
Market structure in which many sellers offer similar (not identical) products and use non-price differentiation *
monopolistic competition
Market structure in which one seller controls all the production of a good or service *
monopoly
The loan that you get to buy a house is a *
mortgage
A diversified stock portfolio set up by an expert that takes some of the risk out of investing but still pays a higher interest rate than a traditional savings account *
mutual fund
Factor of production that includes natural resources not created by humans *
natural resources
Which of the following lists the four factors of production? *
natural resources, human resources, capital resources, entrepreneurs
A basic requirement for survivial *
need
Money that is left over after taxes and other benefits are deducted is known as *
net income
Market structure in which a few large sellers dominate the market *
oligopoly
Which of the following best describes the relationship between trade-offs and opportunity costs? *
opportunity costs exist when trade-offs are made
What is economic interdependence? *
people's reliance on one another to provide goods and services
Market structure in which many sellers offer identical products, resulting in the market determining price *
perfect competition
Specialization refers to *
performing one task relatively more efficiently than another
Changes in quantity demanded are caused by changes in *
price
According to Adam Smith, what directs the choices business people make about how to use their resources? * pic wouldn't download
profit
Condition that results from society not having enough resources to produce all the things that people would like to have *
scarcity
What is the fundamental problem of economics? *
scarcity
Work that is performed for someone *
service
An increase in quantity supplied at every price causes the supply curve to *
shift right
Exists when the quantity supplied is less than the quantity demanded *
shortage
Part ownership in a corporation *
stock
Which type of unemployment is described in the following scenario? "You worked as a bank teller. In recent years, more people use electronic payments instead of cash. Because of this decline in volume, the bank discontinued your position." *
structural
Which type of unemployment is described in the following scenario? "You worked in technical support for a large computer company. The company outsourced this service to a company overseas, so you are out of a job." *
structural
A good which is purchased to replace another similar but more expensive good. If the price of one product is higher, you are likely to buy the other, similar product *
substitute good
Exists when the quantity demanded is less than the quantity supplied *
surplus
A tax on imports is a *
tariff
Opportunity costs are *
the cost of the next best alternative when a choice is made
What is the unemployment rate? *
the percentage of people who are looking for a job but can't find one
Consumers' willingness to replace a costly item with a less costly item is an example of *
the substitution effect
What is GDP? *
the total value of everything sold in a year, calculated by adding consumer spending, business investment, foreign trade, and government spending
A demand schedule illustrates *
the various quantities demanded of a particular product at various prices at a given time
Which describes a market economy? *
where consumers and privately-owned businesses answer the three basic economic questions
The system that allows people to pay federal income taxes out of each check throughout the year is *
withholding
What is a multinational corporation? *
an organization that manufactures and markets products in many different countries and has multinational stock ownership and management
On a stock quote, which column represents the last trading price recorded when the market closed on the day? *
Close
According the the demand curve for videos, how many videos would be demanded at a price of $10? * couldn't upload the pic
1000
An account that allows you to save for retirement and is not taxed is *
401K
An example of a geographic monopoly would be *
A concession stand at a baseball stadium
An example of a technological monopoly would be *
A medication with a patented formula
Which of the following societies are examples of traditional economies? *
African Mbuti, Australian Aborigines, Amish, Native American
Insurance on your mortgage that financial institutions require when you don't put a 20% down payment on a home purchase is *
PMI
On a stock quote, which column represents the unique alphabetic name which identifies the stock? *
Ticker
On a stock quote, which column represents the total number of shares traded for the day? *
Trading Volume
Which of the following is an example of a good? *
a car
What is inflation? *
a decrease in the value of currency as prices go up over time
A production possibilities curve/frontier is *
a diagram representing various combinations of goods and services that an economy can produce when all resources are fully employed
What is a recession? *
a downturn in the economy characterized by a decrease in productivity and an increase in unemployment
What is licensing? *
a global strategy in which a firm allows a foreign company to produce its products in exchange for a royalty
Which of the following is an example of a service? *
a haircut
Who would you most likely find participating in a market economy? *
a mom working overtime to save up money for her child's college fund
What is a joint venture? *
a partnership in which two or more companies join to undertake a major project
Which of the following is not a capital good? *
a refrigerator on sale at an appliance store
Trade-offs are *
alternative choices
Which describes price stability? *
an economic goal that is based on preventing inflation
Which describes economic freedom? *
an economic goal that is based on the desire of people to make their own decisions
Which describes economic efficiency? *
an economic goal that is based on the desire of people to use resources wisely
Decreasing extra usefulness *
diminishing marginal utility
Which of the following is not a major economic and social goal of the United States? *
economic interdependence
When a price change has large effect on the quantity demanded *
elastic demand
When a price change has a large effect on the quantity supplied *
elastic supply
A ban on the export or import of a certain product or on trade with a particular country *
embargo
Occurs when the quantity supplied and the quantity demanded are equal *
equilibrium point
Value or wealth that is accumulated by homeowners as they pay down their mortgage and/or the value of their home goes up *
equity
Selling products to another country *
exporting
Which type of unemployment is described in the following scenario? "You completed you medical degree and will start work at a local hospital next month." *
frictional
Which type of unemployment is described in the following scenario? "You finished college and earned a bachelor's degree in public administration. You have applied for several jobs and are waiting to hear back." *
frictional
