Bare basics
What do the 3 items below have in common?
A snow shovel
A DVD
A submarine sandwich.
These are examples of goods, not services
Which of the following economic systems is an economy where the 3 basic questions in economics are made by voluntary exchange in markets
free market economy
What is the study of economic behavior and decision-making in small units such as households and firms.
Microeconomics
How is a supply curve usually sloped?
Upward
What is the term for property owned by individuals or companies instead of by the government?
Private property
What goods and services should be produced?
How should these goods and services be produced?
Who consumes these goods and services?
three basic questions of economics
What do the 3 items below have in common?
Food
Shelter
Clothing
These are examples of needs, not wants
Which of the following is an economy where the government rather than individual consumers and producers answer the 3 basic questions of economics?
Command economy
What is the term used for the total value of all goods and services produced in one country in one year?
Gross Domestic Product
What is the name for the desire, willingness, and ability to buy a product?
Demand
If we consider Coke and Pepsi as equal in value and we will always buy the cheaper of the two items, then we consider Coke and Pepsi to be:
Substitutes
Which country has been a communist government since the late 1940s but reformed to allow a lot more economic freedom and has had a lot of economic growth, now the world’s second largest economy after the United States?
China
What is the study of how people satisfy their needs and wants by making choices.
Economics
Which economic system has a central government that owns and controls all resources and makes all economic decisions?
Communism
What is the study of economic behavior and decision-making in a nation’s whole economy?
Macroeconomics
How consumers respond to price changes based on a change in what they buy is called:
elasticity
What is an organized way for producing and distributing goods and services?
Economic system
price stability
economic growth
maximum employment
three of the four economic goals of society
What is the cost of the next best choice?
opportunity cost
What kind of economy has a belief that wealth should be evenly distributed throughout society?
Socialism
What is the name of the alternating patterns of economic expansion and contraction in an economy?
Business cycle
How is a demand curve usually sloped?
Downward
If we always need salsa with our tortilla chips and will buy more of the other one if one of these becomes cheaper, then we consider salsa and tortilla chips to be:
Complements
If anyone can drive on roads everyone even if someone doesn’t pay for it, than roads are considered a ______________________ , as it is a shared good or service that would be inefficient to make each person pay and to exclude those who don’t pay.
Public good
Which of the following factors of production shows risk-taking in an attempt to earn profits?
Entrepreneurship
What is the economic system in which private citizens own and use the factors of production to generate profits and is widely considered the most efficient economic model?
Capitalism
The total amount of money that a country has spent larger than it has collected in taxes over many years is called the:
National debt
The law of supply states that if you raise the price of an item that businesses will produce:
More of it
If workers became more productive due to much better technology at Amazon, what would be the likely result for distribution of products?
supply curve shifts right
What is the name of benefits people receive from items they don’t pay for?
Positive externalities
Which of the following factors of production are human made resources used to produce other goods?
Capital
Which economic system is an economy that has some market-based elements and some government involvement
mixed economy
What is it called when amount of money that the government spends in one year is greater than the amount of money the government collects in taxes.
deficit spending
The law of demand states that if you lower the price of an item that people will buy:
More of it
If the next U.S. president decreased business taxes, what would be the likely result for Home Depot, a major U.S. business?
supply curve shifts right
What is the profit-maximizing quantity of output, which is the amount all businesses always want to produce at
MR = MC