d
economic system that has some combination of traditional, command, and market economies
planned/mixed economy
we drew them, they were in the book
circular flow chart
productive resources needed to produce goods; the four factors are land,capital, labor, and entrepreneurship
factors of production
risk-taking individuals who introduce new products or services in search of profits/ one of the four factors of production
entrepreneur
comparison of the cost of an action to its benefits
cost benefit analysis
quality of living based on ownership of necessities and luxuries that make life easier
standard of living
sustained rise in the general level of prices of goods and services
inflation
fundamental economic problem facing all societies resulting from a combination of scarce resources and people's virtually unlimited needs and wants
Scarcity
competing products that can be used in place of another; products related in such a way that an increase in the price of one increases/decreases the demand for another (two words that are just the opposite of eachothers)
substitutes/complements
gov. payment to encourage or protect a certain economic activity
subsidy
stage of production where output increases at a decreasing rate as more units of variable input are added
diminishing returns
costs of production that do not change when output changes
fixed costs
According to economic definitions, which of the following best describes an entrepreneur?
A) A worker who earns a fixed wage.
B) A person who only manages natural resources.
C) A risk-taker who introduces new products to make a profit.
D) A consumer who buys goods in the market.
c.
If a pizza shop has only one oven, what happens to the total number of pizzas made as they keep adding more and more workers?
A) Total output decreases immediately.
B) Total output keeps increasing at the same rate.
C) Total output increases, but by smaller and smaller amounts.
D) Total output stops increasing entirely. [1, 2, 3, 4, 5]
c.
According to the definition, what are the four main factors of production needed to create goods?
A) Money, Profit, Sales, Taxes
B) Land, Labor, Capital, and Entrepreneurship
C) Trees, Tools, People, Cars
D) Buying, Selling, Shipping, Marketing [1, 2]
b.
Cost benefit analysis: If buying a new laptop costs \(\$500\) but saves you 10 hours of work time worth \(\$800\), is the purchase worth it?
Yes, because the benefit (\(\$800\)) is greater than the cost (\(\$500\))
Why do all societies have to make choices about what to produce?
Because of scarcity, which means there are not enough resources to satisfy everyone's unlimited wants and needs.
What do we call a payment made by the government to a business or industry to help them, such as making it cheaper for farmers to produce food?
A subsidy
A mixed economy is a system that combines which three types of economies?
A) Only Market and Traditional
B) Traditional, Command, and Market
C) Only Command and Market
D) None of the above
B
When the average price of items like food, clothing, and housing keeps going up over a long period, causing your money to buy less, this economic situation is called:
inflation
A) All productive resources are fully employed
B) Resources are being wasted
C) Technology has stopped improving
D) The economy is in a recession
A
True or False: Your standard of living is defined by the necessities and luxuries you can afford.
true
cost of the next best alternative use of money, time, or resources, which one choice is made rather than another
opportunity cost
diagram representing all possible combinations of goods and/or services an economy can produce when all productive resources are fully employed
production possibilities curve
If the price of Nike shoes goes up, what will likely happen to the demand for Adidas shoes (a competing brand)?
A) Demand for Adidas will decrease.
B) Demand for Adidas will increase.
C) Demand for Adidas will stay the same.
B