Unit 6/7 Economics

Question 1

What is economics?

Answer 1

The study of people making choices with limited resources in the market place.

Question 2

What is scarcity?

Answer 2

Its the lack of a resource, good, or service

Question 3

What is choice?

Answer 3

Selecting an item from a set of alternatives.

Question 4

What is the marketplace?

Answer 4

A place 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 are natural resources?

Answer 6

Items found in nature.

Question 7

What are human resources?

Answer 7

People who provide labor

Question 8

What are capital resources?

Answer 8

Things owned by the business.

Question 9

What are entrepreneurship resources?

Answer 9

people who take risks starting a business

Question 10

What is production?

Answer 10

Resources are combined to create goods and services.

Question 11

What is consumption?

Answer 11

Purchasing and using a good or service.

Question 12

In a Traditional economy what are decisions based on?

Answer 12

Custom and Tradition

Question 13

In a Free Market Economy who makes economic decision?

Answer 13

Consumers and Businesses (no government involvement)

Question 14

In Free Market business decisions are based on what?

Answer 14

Profit (money)

Question 15

In a Free Market what reduces cost and makes better quality goods?

Answer 15

Competition

Question 16

In a Free Market what determines what is produced?

Answer 16

Consumer sovereignty (Consumer choice)

Question 17

In a command Economy who makes all economic decisions?

Answer 17

the Government (Communism)

Question 18

In a mixed economy what are the two sectors involved in economic decisions?

Answer 18

Private (Consumers and Businesses) Public (Government)

Question 19

Give an example of a public (Govt.) decision in the private sector?

Answer 19

minimum wage (Gov. Law)
safety regulations at work (hardhat)

Question 20

What is private property?

Answer 20

Business and individuals can own land and buildings

Question 21

What is supply?

Answer 21

The amount of good/services that a business is willing and able to sell

Question 22

What is demand?

Answer 22

The amount of good/services that a consumer is willing and able to buy

Question 23

What is price?

Answer 23

The intersection of supply and demand that sets the amount of money a good or service is sold for.

Question 24

What is a proprietress?

Answer 24

Business with one owner who takes all the risks and keeps all the profit.

Question 25

What is a partnership?

Answer 25

a business with 2 or more owners that share the risk and the profits.

Question 26

What is a corporation?

Answer 26

A business that acts as a legal person, Owners share the profit, limit, risks

Question 27

What is circular flow?

Answer 27

Money flows in one direction and goods and services flow in the opposite direction.

Question 28

In circular flow what are households?

Answer 28

Consumers

Question 29

In circular flow what resources do households have?

Answer 29

Money, labor, land

Question 30

In circular flow what do businesses do with household resources?

Answer 30

Produce more goods/services

Question 31

How does government get money for public goods/services

Answer 31

Taxes

Question 32

Who issues coins and currency to make it easier to purchase goods/services?

Answer 32

Government

Question 33

Where do consumers and businesses get additional money for purchases or business expansion?

Answer 33

Banks

Question 34

What are the 4 ways the government gets money?

Answer 34

Taxes, fees, fines, borrowed funds

Question 35

What is the Federal Govt. main tax?

Answer 35

Federal Income Tax

Question 36

What are the state govt. main taxes?

Answer 36

State Income Tax and Sales Tax

Question 37

What are local govt. main tax

Answer 37

Personal Property Tax (home, vehicle)

Question 38

What does the consumer safety product commission (CSPC) do?

Answer 38

Test and make sure products are safe to buy.

Question 39

What does the food and drug administration (FDA) do?

Answer 39

Make sure food and drugs are safe.

Question 40

What govt. agency defines safety procedures for the workplace?

Answer 40

Occupational Safety and Health administration (OSHA)

Question 41

What govt agency protects hiring practices discrimination?

Answer 41

Equal Opportunity Employment Commission (EOEC)

Question 42

What government agency protects the environment?

Answer 42

Environmental protection agency (EPA)

Question 43

What us monopoly?

Answer 43

One business controls the production and distribution of one product.

Question 44

What is antitrust legislation?

Answer 44

Are laws that discourage monopolies.

Question 45

Why is international trade beneficial to the US economy?

Answer 45

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

Question 46

What is the benefit of advances in technology to the economy?

Answer 46

Lower the cost of productions.

Question 47

What does federal communications commission do>

Answer 47

Regulate tv, radio, etc… communications.

Question 48

What does the security exchange commission do?

Answer 48

Protect investor

Question 49

What does the federal trade commission do?

Answer 49

Protect consumers from false advertising.

Question 50

What does the federal reserve system (The Feds) do?

Answer 50

Regulate banks. Influence the money supply, and raise or lower interest rates to keep inflation (value of money) low.