Mr. Covey Questions #1
What is examined in macroeconomics?
Entire economic systems
What is the term for the value of the next best alternative given up in order to obtain an item?
Opportunity cost
Name two of the five advantages of the Price System
Information, Incentives, Choice, Efficiency, Flexibility
Real-World Example of a Perfectly Competitive Market
Agriculture
Do nonprofits make profits?
Yes
What are the things people use to make or obtain what they need or want are called?
Factors of production
What is the term for a product’s usefulness to a person?
Utility
What are the three limitations of the Price System?
Externalities, Public Goods, Instability
How do businesses differentiate products in a monopolistic market
Nonprice Competition
Bonus: Wager Points
What does it mean to be Lassiez-Faire Economics
Hands-Off Economics
What are examples of needs?
Food, Water, Shelter
What are the three purposes of money?
A method of exchange, A measure of value, A store of value
Fisher Example (or others) and Pollution (or others)
Describe what is a monopoly?
Single Seller markets with not close substitutes.
What is Unlimited Liability?
The owner is responsible for all debts to the business
What is referred to as the “basic economic problem”?
Scarcity
What is meant by the term “mixed economic system”?
An economic system that combined aspects of two or three of traditional, custom or market-based economies.
Example of a Public Good
Police Officer
Three Characteristics of Oligopolies
There are only a few large sellers, Sellers offer identical or similar products, Other sellers cannot enter the market easily
What is the advantage of Profits in a sole proprietorship?
The owner keeps all the profits
What are examples of factors of production?
Natural, Human, Capital Resources and Entrepreneurship
What does a production possibilities curve demonstrate
The possible combinations of two different items that can be produced.
Bonus: Bet Points.
Qs > Qd, Qs < Qd, Qs = Qd
Surplus, Shortage, Equilibrium
What are the four types of monopolies?
Government, Geographic, Technological, Natural
What is a sole proprietorship?
A business owned by a single person