Chapter 1
T/F
All economic resources have a limited supply.
True!
T/F
In the United States, all people over the age of 21 who do not have a full-time, paying job are considered “unemployed.”
False!
Retired, those who choose not work, ect
T/F
Without foreign trade, all of the items you buy would cost less, because they would not need to be shipped here from other lands.
False
Without foreign trade, many things you buy would cost more or not be available.
Who owns the economic resources in a market economy?
The people of that country
Explain what would have to prices if you had a lack of competition in a sector.
Lack of competition leads to higher prices
T/F
A person who buys and uses goods and services is called a consumer.
True
Dividing GDP by the total population of a country results in that country’s what..
GDP per capita
The making, buying, and selling of goods and services within a country is called
a.international business.
b. world trade.
c.importing.
d. domestic business.
domestic business
Define a traditional economy
An economy that focuses on making products in a way that has been done by generations rather than by companies or factories.
Define why the U.S. economy is not just a market economy.
The U.S. economy is considered a "mixed" economy. Meaning the people of the country as well as the government both contribute and own businesses and contribute to the economy.
Name 2 Economic Needs
water
clothes
shelter
healthy foods
An economic ____________________ is the phase in which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise again.
recovery
Goods and services sold to other countries are called__________
exports
Name 3 examples of Capital resources.
Buildings, equipment, land, machinery, infrastructure
Briefly explain the difference between a recession and a depression
Recession = short-term, milder downturn.
Depression = long-term, extreme downturn.
People producing goods and services are called
what.
Human Resources
A bond represents ____________________ for an organization.
debt
Which of these is NOT an example of a country’s infrastructure?
a.transportation systems
b.political system
c.communication systems
d.utilities
political system
Explain an example of a capital project
A business purchases new pickup trucks.
A business buys new land to expand.
A business buys a new piece of equipment
What is the WTO and what do they do?
The World Trade Organization (WTO) sets rules for international trade and helps resolve disputes between countries. Its main goal is to make global trade flow smoothly, fairly, and predictably.
If everybody had an unlimited supply of economic resources, which of the following would NOT exist?
scarcity
______________ are the recurring ups and downs of gross domestic product
Business cycles
A tax that a government places on certain imported products is called what
tariff
If wages increase faster than gains in productivity, prices will rise. Why?
Because the cost of producing goods increases
Define how banks make money
Banks make money mainly by charging higher interest rates on loans than they pay out on deposits, keeping the difference as profit.