Econ Quiz 1

Question 1

what is production

Answer 1

creating goods

Question 2

what are resources

Answer 2

materials required for production

Question 3

what is scarcity

Answer 3

inability to satisfy all wants

Question 4

what is private property

Answer 4

Owned or provided by individuals or businesses.

Question 5

what is public property

Answer 5

Owned or provided by government.

Question 6

what is consumption

Answer 6

Using goods and services

Question 7

what is consumer sovereignty

Answer 7

consumer is king

Question 8

what is supply

Answer 8

amount of goods or services PRODUCERS are willing to MAKE and SELL at a given price

Question 9

what is demand

Answer 9

amount of goods or services CONSUMERS are willing to BUY and USE at a given price

Question 10

what is price

Answer 10

value of a good or service

Question 11

what is competition

Answer 11

Rivalry between producers for consumers resulting in better quality goods and services at a lower price

Question 12

what is profit

Answer 12

money earned by producers after all costs of producing a good or service has been paid

Question 13

what is an economic system

Answer 13

An organized way in which a state or nation decides how much they’re gonna satisfy wants and needs

Question 14

what is incentive

Answer 14

Something that motivates individuals to change economic behavior

Question 15

what choices are made in production

Answer 15

what how and for whom to produce

Question 16

what will influence producer choices

Answer 16

(Unlimited wants, limited resources) scarcity

Question 17

what choices are made in consumption

Answer 17

what and how much to consume

Question 18

what will influence consumer choices

Answer 18

price, preference

Question 19

What is opportunity cost

Answer 19

What is given up when making a choice

Question 20

how do producers respond when price changes

Answer 20

High price when selling more, low when selling less

Question 21

How do consumers respond when price changes?

Answer 21

High price buy less, low price buy more

Question 22

What determines price?

Answer 22

Supply and demand

Question 23

what price should a product be

Answer 23

where supply and demand meets

Question 24

what are the pros of proprietorship

Answer 24

Doesn’t have to share profit, can have own ideas

Question 25

what are the cons of proprietorship

Answer 25

Takes all the risks, will be responsible to pay debts alone if it fails

Question 26

what are the pros of partnership

Answer 26

Share risk and possible debt, more help with ideas and work

Question 27

what are the cons of partnership

Answer 27

Share profits, one person leaves then others have to pay their debt

Question 28

what are the pros of corporation

Answer 28

authorized by law to act as legal person regardless of # of owners, share risk with so many people, only lose what u invest cuz ur liability is limited to ur investments

Question 29

what are the cons of corporation

Answer 29

Limited ownership so limited power, have to share profits with so many people

Question 30

What are the 3 basic economic questions countries must answer?

Answer 30

What is being produced? How will it be produced? For whom will it be produced?

Question 31

Free Market characteristics

Answer 31

Individuals & Businesses, Profit - earnings made after expenses have been paid, Private - Individuals & Businesses, Supply & Demand, Many different choices due to competition, Consumer is King, No gov

Question 32

Command characteristics

Answer 32

Government, Providing for ALL citizens, Public - owned by gov, government, lack of choice, no consumer, economy is centrally planned 100% government

Question 33

Mixed Characteristics

Answer 33

1. Gov (Public) 2. Individuals & Businesses (Private), Private-Profit Public-Protecting and providing for Public, Private&Public ownership, competition and/or gov, many different choices due to competition, Consumer is King, Protect private property rights by enforcing contracts and consumers rights w/ public health and safety regulations

Question 34

Traditional Characteristics

Answer 34

Decisions are based on customs and historical precedent (traditions). People often perform the same type of work as parents/grandparents, regardless of ability or potential.

Question 35

what are the types of resources

Answer 35

natural, entrepreneurial capital human

Question 36

most common economic system?

Answer 36

mixed

Question 37

US economic system

Answer 37

mixed leaning free

Question 38

What are the 5 characteristics of the US Economy?

Answer 38

Free Markets, Private Property, Consumer Sovereignty, Competition, Profit