Unit 6/7 Economics

Question 1

What is the study of Economics

Answer 1

The study of how people use limited resources in the market place

Question 2

what is scarcity

Answer 2

lack of a resource

Question 3

what is choice

Answer 3

selecting an item or action from a set of alternatives

Question 4

what is the marketplace

Answer 4

where goods and services are bought and sold

Question 5

what is opportunity cost

Answer 5

what is given up when a choice is made

Question 6

what is a natural rescource

Answer 6

found in nature

Question 7

what is a human resource

Answer 7

provide the labor (people who make stuff)

Question 8

what is capital resources

Answer 8

things owned by the business

Question 9

what is entrepreneurship resource

Answer 9

people who take the risk to start a business

Question 10

what is production

Answer 10

creating a good or service

Question 11

what is consumption

Answer 11

the purchasing of a good or service

Question 12

in a traditional economy decisions are based on what

Answer 12

tradition and custom

Question 13

in a free market economy decisions are made by whom

Answer 13

individuals and business owners

Question 14

in free market economy business make decisions based off what

Answer 14

profit (making money)

Question 15

in a free market economy what helps to create better products at lower prices

Answer 15

competition

Question 16

what is consumer sovereignty

Answer 16

control is in the hands of the consumer (the buyer)

Question 17

in a command economy who makes decisions

Answer 17

government

Question 18

in which economic system has the least amount of consumer choice

Answer 18

command economy (communism)

Question 19

in a mixed economy when can the government intervene in business

Answer 19

benefits outweigh the potential cost

Question 20

what is private property

Answer 20

when businesses and individuals can own land and buildings

Question 21

what is supply

Answer 21

the amount of a good or service

Question 22

what is demand

Answer 22

the amount consumers are willing to buy

Question 23

what does the interaction of supply and demand determine

Answer 23

price

Question 24

what is equilibrium price

Answer 24

the price where demand and supply meet

Question 25

what is proprietorship

Answer 25

one owner taking all the risk and profits

Question 26

what is a partnership

Answer 26

two or more owners share the risk and profits

Question 27

corporation

Answer 27

business that is a legal person

Question 28

which economic system has some private and some public (government) decision making

Answer 28

mixed

Question 29

is a free market economy private or public?

Answer 29

private

Question 30

Is a command economy private or public?

Answer 30

public

Question 31

what is circular flow

Answer 31

when goods and services flow in one direction and money flows in the other direction

Question 32

in circular flow, what are “households”

Answer 32

the consumer

Question 33

in circular flow, what resources do “households” (consumers) have

Answer 33

labor, money, land

Question 34

in circular flow, what do businesses use resources for

Answer 34

to make goods and services

Question 35

in circular flow, what does the government use taxes from consumers and businesses for

Answer 35

public goods and services (roads)

Question 36

who issues currency

Answer 36

the government

Question 37

what is money

Answer 37

anything that can be used for payment or exchange

Question 38

what are private financial institutions

Answer 38

banks and credit unions

Question 39

how does the government get funds or goods and services

Answer 39

taxes, borrowed funds, fees, fines

Question 40

what is income tax?

Answer 40

government tax on money your earn

Question 41

what are the two types of state taxes

Answer 41

income and sales tax

Question 42

what does the Consumer Safety Product Commission (CPSC) do

Answer 42

test and make sure products are safe to buy

Question 43

what does the food and drug administration (FDA) do

Answer 43

make sure food and legal drugs are safe

Question 44

what government agency defines safety procedures for the workplace

Answer 44

OSHA (Occupational Safety and Health Administration)

Question 45

what government agency protects hiring practices from discrimination

Answer 45

equal opportunity employment commissions (EOEC)

Question 46

what government agency protects the environment

Answer 46

environmental protection agency (EPA)

Question 47

what is a monopoly

Answer 47

one business controls the production and distribution of one product

Question 48

what is antitrust legislation

Answer 48

are laws that discourage monopolies

Question 49

why is international trade beneficial to the US economy

Answer 49

1. Increase our wealth
2. obtain goods
3. lower our costs
4. sell to other countries
5. create jobs

Question 50

what is the benefit of advances in technology to the economy

Answer 50

lower the cost of production

Question 51

what does the federal communication commision do

Answer 51

regulate TV, radio, etc… communications

Question 52

what does the security exchange commision do

Answer 52

protect investors

Question 53

what does the federal trade commision do

Answer 53

protect consumers from false advertising

Question 54

what does the federal reserve system (The Fed)

Answer 54

regulate banks