What is resources are used to their greatest capacity.
100
Guns and butter are what we call...
What is tradeoffs government
100
If prices rise what happens to quatity demanded?
What is decreases
100
State the difference between a depression and a recession
What is
depression- long recession
recession-6 months of failing contraction
100
How do banks create money?
What is by loans
200
Inputs:Outputs is a term for what?
What is ratio for productivity
200
How can the government eliminate free riding
What is by taxes
200
What disadvantages do sole proprietors and partners share?
What is unlimited liability
200
Define stagflation
What is real GDP falls while inflation occurs
200
What is the purpose of the CPI
What is determine the cost of living
300
Law of supply says...
What is higher the price, larger the quantity produced
300
When do decreasing marginal return (or utility) occur
What is when you are satisfy with your product
300
Write the formula to calculate a company's total revenue.
What is total revenue=(price*quantity sold)
300
Write the formula to calculate the unemployment rate
What is unemployed/labor force * 100
300
What is the difference between expansionary and contractionary policy
What is expanisonary policy- taxes go down while spending goes up
contractionary policy- taxes go up while spending go down
400
List the types of advantages for each economic system: traditional, command, and free market
What is
traditional: simple, natural caring
command: no competition, general equality
free market: open, grow, consumer sovereignty
400
List the four different roles of government in the FREE ENTERPRISE SYSTEM
What is incentives for innovation, regulation, providing public goods, and redistribution for income
400
Why should a firm produce at the level where MR=MC
What is the firm already reached equilibrium and the optimal level of output
400
How do you know you are in recession
What is if you have 6 months of contraction
400
How do a country know it is running a trade deficit or a negative balance of trade
What is if they are importing more than its exporting
500
List some advantages and disadvantages for a sole proprietorship
What is
advantages:easy to start, few regulations, full control, easy to discontinue, sole reciever of profit
disadvantages: unlimited liability, limited resources, lack of permaneince, lack of fringe benefit
500
What are the Constitutional "rights" offered or protected for our market economy?
What is recognition of property rights, taxiation, and binding contract.
500
List some factors that affect changes in supply.
What is # of sellers, global supply, external supply, expectation, technology, import restriction, subsidies, taxes, regulation
500
Explain the 3 types of taxes
What is
Progressive- more you make the more they take
Proportional- equally unfair
Regressive- less you make the more they take
500
List 3 arguments for protectionism
What is save domestic jobs, shield infant industries, and safeguard national security