Unit 2 Test Flashcards
Which group of players provides all goods and services in the game of economics?
Producers
Which describes the effect of the purchases that consumers make?
indicate their desires to producers
Which group of players in the game of economics both produces and uses goods and services?
Workers
Which group of players uses the goods and services produced in the game of economics?
Consumers
Which best explains the purpose of market research?
Market research helps producers earn more profits.
Which consumer influence is represented by the action of buying an item because everyone else is doing it?
trend
Which is an example of an action that is part of making a rational choice?
doing a cost-benefit analysis
Which is a budget used for?
planning income and expenses
Which term refers to the personal satisfaction someone gets from consuming goods and services?
Utility
Which best describes discretionary spending?
buying goods according to what one want or needs
Which best explains why some people get life insurance and others don’t?
Different people are willing to face different kinds of risks.
Which is a way that the media influences consumer behavior?
product placement
Which does the news media do?
Provide Information
Which is determined by subtracting costs from revenue?
Profits
Which most strongly drives producers in a free-market economy?
Profit Motive
Which best states the main difference between a monopoly and monopolistic competition?
Monopolistic competition involves slightly differentiated products while monopoly involves a single product.
Which method do media companies use to make revenue?
selling ads and subscriptions
Which best describes the purpose of advertising?
transmit product messages to an audience
Which best explains why the media industry is characterized by an oligopolistic market structure?
Centralization of ownership has led to an industry controlled by a few large companies.
Which is a characteristic of general partnerships but not limited partnerships?
unlimited liability for all partners
Which type of business is owned by stockholders?
public corporation
Which is an advantage corporations enjoy over partnerships?
The owners of a corporation don’t have to work together to make all of the business decisions.
Which type of business is most likely to use the bricks-and-clicks business model?
clothing sellers
Which generates revenue for Google?
sale of advertisements