Quiz 1

Question 1

economics

Answer 1

the study of how society determines “who gets what”

Question 2

economic law

Answer 2

carries the same weight as SCIENTIFIC law

Question 3

scarcity

Answer 3

human wants are unlimited, but the resources needed to fulfill those wants are limited

Question 4

any political promises of “everybody” getting all they want of a ___________ source is false

Answer 4

measurable

Question 5

resources

Answer 5

Items or building blocks of items that are used to fulfill human wants

Question 6

factors of production

Answer 6

Land, labor, capital

Question 7

opportunity cost

Answer 7

Because of scarcity, for every choice made there’s something that is given up

Question 8

Economic Decision Making

Answer 8

a) Opportunity Cost
b) Incentives vs. Decentives (Cost/Benefit)
c) Profit Motive
d) Margin

Question 9

Profit Motive

Answer 9

Both individuals and businesses are motivated best by making money for themselves
Good for society

Question 10

Margin

Answer 10

-Measure of additional costs or benefits
-As time or money spent increases, marginal benefits fall while marginal costs rise (ex: exercising too much/little)

Question 11

Traditional economy

Answer 11

no “money”
decisions made by chief or elders on behalf of tribe or group

Question 12

Manorialism

Answer 12

Decisions made by King, Lord, or other powerful military figure on behalf of people living on land they control

Question 13

Mercantilism

Answer 13

Decision made by King on behalf of country

Question 14

Socialism and Communism

Answer 14

Decisions made by leader of single political party on behalf of the country

Question 15

capitalism

Answer 15

-Decisions made by individual people and/or businesses on behalf of themselves.
-Only economic system with individual freedom

Question 16

microeconomics

Answer 16

Study of economic systems with a focus on individual people and businesses

Question 17

macroeconomics

Answer 17

Study of economic systems with a focus on Nations

Question 18

microeconomic focus

Answer 18

Includes personal finance and how businesses and people make economic decisions within the framework of the economic system that they are living under

Question 19

macroeconomics

Answer 19

Looks at the “big picture” of how nations influence their own economies, make economic decisions, and international trade