Unit 6/7 Economics Even

Question 1

what is economics

Answer 1

The study of how people use limited resources to make choices in the market place.

Question 2

what is scarcity?

Answer 2

the lack of resources of goods and services.

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

the places 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

individuals that provide labor

Question 8

what are capital resources?

Answer 8

things owned by businesses

Question 9

what is entrepreneurship?

Answer 9

people who start a business

Question 10

what is production?

Answer 10

the process of creating goods and services.

Question 11

what is consumption

Answer 11

when consumers purchase and use the good and service

Question 12

in a traditional economy what are decisions based on?

Answer 12

customs and Traditions

Question 13

in a free market economy who is making decisions?

Answer 13

Business owners and individuals (consumers)

Question 14

in a free market who owns the recorses

Answer 14

private business

Question 15

in a free market business decisions are based on what

Answer 15

profit(money)

Question 16

in a free market what does competition do for consumers

Answer 16

reduce prices and better products

Question 17

in a free market what is consumer sovereignty

Answer 17

consumer choice determines what is produced

Question 18

in a command economy who makes all the economic decisions

Answer 18

government

Question 19

in a mixed economy what are the two sectors involved in decision making

Answer 19

private (business &
consumers) public(government)

Question 20

what is private property

Answer 20

business and individuals can own their own land and building

Question 21

what is suppply

Answer 21

Amount of goods/services that businesses and willing and able to sell it

Question 22

what is demand

Answer 22

amount of a good /service the consumers are willing to buy

Question 23

what is equilibrium price

Answer 23

the price where supply and demand meet

Question 24

what is a proprietorship

Answer 24

a business with one owner who takes all the risk and keeps all the profit

Question 25

what is a partnership

Answer 25

business with 2 or more owners who take all the risk and share all the profit

Question 26

what is a corporation

Answer 26

its a business that acts like a legal person owners share the profit but take less risk

Question 27

what is circular flow

Answer 27

produces flow in one direction and money flows in the opposite direction forming s circle

Question 28

in circular flow what is a household

Answer 28

consumer

Question 29

in circular flow what recourse do households have

Answer 29

money, labor, and land

Question 30

in circular flow what do business use resources for

Answer 30

make more goods and services

Question 31

in circular flow how does government get money to provide public goods and services

Answer 31

taxes

Question 32

in our economy who issues money

Answer 32

the government

Question 33

where do consumers and business get money(finial term)to spend or expand and grow business

Answer 33

banks(private financial institutions)

Question 34

what are the 4 ways government gets money for public goods

Answer 34

taxes fines fee borrow money

Question 35

what type of tax does the federal govt get most of its money from

Answer 35

federal income Tax

Question 36

what type of taxes do state govt get there money from

Answer 36

sales tax and state income tax

Question 37

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

Answer 37

test and make sure products are safe to buy

Question 38

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

Answer 38

make sure food and drugs are safe

Question 39

What government agency defines safety procedures for the workplace

Answer 39

occupational safety and health administration (OSHA)

Question 40

What government agency protects hiring practices from discrimination

Answer 40

equal opportunity employment commission (EOEC)

Question 41

what government agency protects the environment?

Answer 41

environment protection agency (EPA)

Question 42

What is a monopoly

Answer 42

one business controls the products and distribution of one product

Question 43

what is antitrust legislation

Answer 43

are laws that discourage monopolies

Question 44

why is international trade beneficial to the US Economy?

Answer 44

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

Question 45

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

Answer 45

lower the cost of production

Question 46

what does the federal communications commission do

Answer 46

Regulate tv radio etc communications

Question 47

what does the security exchange commission do

Answer 47

protect investor

Question 48

what does the federal trade commission do?

Answer 48

protect consumers from false advertising