Final - 1st 30

Question 1

The profit motive is the

Answer 1

incentive to improve material well-being and is responsible for the growth of the free enterprise system.

Question 2

The factors of production include

Answer 2

land, labor, capital, entrepreneur

Question 3

An entrepreneur is

Answer 3

the person who organizes and manages land, labor, and capital.

Question 4

Consumers determine

Answer 4

what to produce.

Question 5

Consumer sovereignty means the…

Answer 5

consumer is the ruler of the market

Question 6

Some states protect workers from

Answer 6

layoffs and illness by setting up unemployment compensation programs

Question 7

The government has become a

Answer 7

protector, provider against harm, regulator and consumer

Question 8

Social Security is a

Answer 8

federal program of disability and retirement benefits that covers most working people

Question 9

Inflation is a rise in

Answer 9

the general level of crisis

Question 10

Inflation is a general rise in

Answer 10

prices overtime

Question 11

A modified free enterprise economy is a

Answer 11

market economy in which people freely carry on economic affairs but are subject to some government regulation

Question 12

Supply is the

Answer 12

amount of a product that would be produced, grown, or acquired and offered or sale at all possible prices that could prevail in the market.

Question 13

Law of Supply

Answer 13

The principle that more will be offered for sale at higher prices than lower prices.

Question 14

Quantity Supplied

Answer 14

The amount that a single producer or all producers bring to market at any given price. It’s a point on the supply curve.

Question 15

Subsidy

Answer 15

A government payment to encourage or protect a certain economic activity.

Question 16

Elastic Supply

Answer 16

When the change in price causes a proportionally larger change in quantity supplied.

Question 17

Total Product

Answer 17

The entirety of output or production by a firm.

Question 18

Periodic Marginal Analysis

Answer 18

best helps a firm establish profit maximizing quantity output.

Question 19

Fixed Cost

Answer 19

Are costs that an organization has even if there is little or no activity. It’s sometimes called overhead.

Question 20

Total Revenue

Answer 20

is all the revenue that a business receives. If revenue from an item drops they produce less.

Question 21

When prices are higher
its an

Answer 21

incentive to produce more.

Question 22

Under perfect competition

Answer 22

Supply and demand sets the equilibrium price

Question 23

Monopoly

Answer 23

Is a market structure characterized by a single producer in a market.

Question 24

The opposite of pure competition

Answer 24

Monopoly

Question 25

market failure

Answer 25

Occurs whenever a flaw in the market system prevents an efficient allocation of resources. There are 5 main causes including not enough competition.

Question 26

What is Laissez-Faire?

Answer 26

The French term that means “allow them to do” was the philosophy that limited government in protecting property and enforcing contracts.

Question 27

In a modified free enterprise system,

Answer 27

government action includes dealing with pollution, laws, taxes, and subsidies. Almost everything is affective.

Question 28

To restore completion several laws were passed including the

Answer 28

Sherman Antitrust Act, the Clayton Antitrust act and the federal trait commission was set up.

Question 29

A mortgage is a

Answer 29

legal document that pledges ownership of a home to lender as security for repayment of barrowed money

Question 30

A trust is an

Answer 30

illegal combination of corporations or companies organize to suppress competition.

Question 31

Foreclosure is the situation in which a

Answer 31

lender reclaims a home because that barrower has defaulted on the previously agreed upon payments