Unit 1

Question 1

Bartering system, trading of one item to receive another; creates a double coincidence of wants, lack of technology, agriculture is the main activity.

Answer 1

Traditional Economic System

Question 2

The market determines the major questions of production and development, profit is the motivator, government has control of a few things like regulations, property rights, etc.

Answer 2

Market Economic System

Question 3

Money owed by an individual, company, or government

Answer 3

debt

Question 4

The government controls vital industries (like natural resources) while capitalist of market principles drive the rest of the economy.

Answer 4

Mixed Economic System

Question 5

A consumer, company, or government’s history in paying back their debt or fulfilling their financial obligation.

Answer 5

credit

Question 6

All decisions are made by the government with little to no input by the people, is favored by communist and totalitarian governments, has no private businesses or property, and has no incentive to work because you cannot accumulate wealth.

Answer 6

Command Economic System

Question 7

The charge a lender places on borrowed money.

Answer 7

Interest

Question 8

The concept of a “double coincidence of wants”

Answer 8

The Barter System

Question 9

The things you miss out on when you decide to spend your money on something else

Answer 9

Opportunity Costs

Question 10

Having limited resources and unlimited wants is known as ______

Answer 10

Scarcity

Question 11

Who pushed Great Britain towards a mixed economic system?

Answer 11

R. H. Tawney

Question 12

Where were the creators of the mixed economic system from?

Answer 12

The United Kingdom

Question 13

Concepts of the market economic system stem from which movement?

Answer 13

Enlightenment

Question 14

Recession and fluctuations of expansions are part of ___?

Answer 14

The Business Cycle

Question 15

Rational Choice is….

Answer 15

Behavior that is dependent upon associated benefits and costs and a decision made based on maximum benefit

Question 16

The growth of a country’s economy and GDP is ____.

Answer 16

Expansion

Question 17

In 2010, ___ was increased greatly.

Answer 17

healthcare

Question 18

___________ is the total value of all goods produced within a particular country regardless of what country the business is from.

Answer 18

GNP

Question 19

The ________ is reached when a country’s economy (GDP) is at its highest output; after that, the economy enters a recession.

Answer 19

peak

Question 20

A country’s economy and GDP must be in decline for this long in order for its economic condition to be considered a recession.

Answer 20

six months

Question 21

_______ is a period when the economy and GDP begin to improve and grow. It is characterized by lower unemployment, an increase in consumption and investment, and banks willing to loan money.

Answer 21

Expansion

Question 22

A slowdown in the economy characterized by rising unemployment, a lack of consumption and investment, and banks being slow to lend money is called _______.

Answer 22

recession

Question 23

The Articles of _____ was the first constitution of the United States that gave more power to the states and left the federal government weak.

Answer 23

Confederation

Question 24

___ held a large portion of U.S. debt in 2010.

Answer 24

China

Question 25

In the area of economics, the government divides its earning marks into quarters, or every ___ months.

Answer 25

three

Question 26

_______ is the statistic that shows the total value of all goods produced within a country regardless of national affiliation.

Answer 26

GDP

Question 27

The collapse of ___ greatly altered U.S. military spending.

Answer 27

Russia

Question 28

During the 1873 depression, the people in debt were in favor of ___.

Answer 28

the reissue of greenback dollars from the Civil War

Question 29

The future of the U.S. Social Security system is in jeopardy because of a large number of ___ and a declining birth rate.

Answer 29

aging baby boomers

Question 30

One of the first three departments of the early American government was the ___.

Answer 30

Department of State

Question 31

A period when a country’s economy (GDP) is at its lowest output is a _______________.

Answer 31

trough

Question 32

A loss of value of money that causes a rise in prices is ______.

Answer 32

inflation

Question 33

-He was greatly influenced by the Enlightenment movement. - The Scottish philosopher influenced the efforts and ideas of democracy advocated by our Founding Fathers. -He authored The Wealth of Nations, a major work explaining that a free market would thrive under the idea of mutual self-interest.

Answer 33

Adam Smith

Question 34

___ was an economic historian who heavily influenced the British Labour Party after World War I to move the country towards a mixed economy.

Answer 34

R.H. Tawney

Question 35

is your history of going into debt and faithfully and punctually paying the money back

Answer 35

Credit

Question 36

an economic and political system in which a country's trade and industry are controlled by private owners for profit.

Answer 36

capitalism