Quiz 1-3 Study Guide Flashcards
The study of how people seek to satisfy their needs and wants by making choices
Economics
Air, food, water, shelter
Need
Something we desire
Want
Actions or activities
Services
Physical objects
Goods
Knowledge and skills a worker gains through education and experience
Human capital
Effort that a person devotes to a task for pay
Labor
Producers will not or cannot offer goods or services at the current price
Shortage
Limited quantities of resources that is used to produce other goods and services
Scarcity
Human-made resource that is used to produce other goods and services
Physical capital
Land, labor, and capital
Factors of production
Human-made objects used to create other goods and services
Capital
Ambitious leaders who decide how to combine land, labor, and capital resources to create new goods and services
Entrepreneurs
Which of the following is not considered a need according to your book ?
A nice car
Which if the following is a want according to your book ?
A nice car
Which of the following is not considered a country’s resources ?
Air
Cost always refers to money
False
Economics may operate ineffectively
True
A production possibilities curve shows alternative ways to use an economy’s productive resources
True
Thinking of the margin is only about thinking about how much more you can do
False
In your own words, define economics
How people satisfy their needs and the wants by making a different choice
In your own words, define wants and needs
Needs- the things for survival
Wants- other things not needed for survival
In your own words, describe trade-offs
Something we sacrifice when we make a decision
If there is a large supply and low demand, prices would typically
Fall
If there is a short supply and a high demand, prices would typically
Rise
A shortage is always permanent
No
Economics is the study of
Scarcity
Scarcity means something is temporarily unavailable
No
If IBM issues a bond and you buy their bonds, you own part of the company
No
If you buy IBM stock, you own part of the company
Yes
If you start saving for retirement now, you have a better chance of hitting your retirement goals then if you waited to save until you were 40
Yes
A bill from your doctor
Expenses
Your car
Assets
Car loan
Liabilities
Your paycheck
Income
A social and political philosophy based on the belief that democratic means should be used to distribute wealth evenly throughout a society is called
Socialism
Economic systems that are based on voluntary exchanges in markets are called __________ __________ Economics
Free market
What is the most common reason someone starts their own business ?
To be your own boss
America is considered a Land of ____________ because of our Free Enterprise
Opportunity
If you have a successful business, can the government of the U.S. take over control to run it for themselves without due process ?
No
The study of the behavior and decision making of entire Economics
Macroeconomics
The study of the behavior and decision making small units such as small units, such as individuals, families, and business
Microeconomics
What does GDP stand for ?
Gross Domestic Product
The study of economics begins with the idea that people cannot have everything they _________ and ________
Need
Want
A ________ is something like air, food, shelter
Need
A _______ is just about everything else
Want
We discussed two types of capitals. __________ and ________
Physical
Human
Human-made objects used to create other goods and services are called _________ capital
Physical
____________ capital is the knowledge and skills a worker gains education and experience
Human
As discussed in class, nobody can take away your ________ and ________
Education and experience
Ambitious leaders who decided how to combine land, labor, and capital resources to create new goods and services are called
Entrepreneurs
___________-________ are all the alternatives when we give up whenever we choose one course of action over another
Trade-off
The most desirable alternative given up as the result of a decision is called the _______ cost
Opportunity
For most decisions we make there are prone and cons. In economic terms we should do a _________ / _________ analysis
Cost/benefit
Coasts are always financial
False
Which of the following usually gives the most protection to a individual
Incorporation
LLC stands for __________ ____________ ___________
Limited liabilities corporation
Does an LLC typically issue stock and bonds ?
No
All natural resources used to produce goods and services
Land
