Unit 1-1
What type of economy is being described?: New ways of doing things is discouraged
Traditional Economy
Diminishing Marginal Utility
What is a company ran by one person called?
Sole Proprietorship
What is the main purpose of a sin tax?
Behavior Adjustment
What is being described?: Simply make more (outproduce) over a country
Absolute Advantage
What type of economy is being described?: There is a high degree of individual freedom
Market Economy
Movement along a demand curve is a result of what?
Change in price
What do business owners need to ask for permission to incorporate a business
Government; through a charter
What is being described? Money that is transferred from one level of government to another (i.e. federal government to state government).
Intergovernmental Funds
What is being described?:
Decreases the chance of conflict because of economic advantages.
International trade
What type of economy is being described?: People who hold political power are threatened by fundamental changes?
Command Economy
Why is a demand curve downward sloping?
Because quantity demanded increases as price decreases
What is a market structure defined by a single producer?
A Monopoly
What are progressive income taxes an example of?
Equity or fairness
What is a tax on imported goods and what do they try to protect
Tariff; domestic industries.
What type of economy is being described?: More of this type than any other in the world.
Combines different types.
Mixed Economy
What term does this describe?: Products that increase the use of other products; products related in such a way that an increase in the price of one reduces the demand for both.
Complements
Does the government want to eliminate all monopolies
No, some monopolies are good
What is being described?:
allows borrowing for expenditures that have already been authorized by Congress and the president
Debt ceiling
Would free traders support NAFTA?
Yes
What do consumers determine in a free enterprise economy?
"What" is produced
What term does this describe?:
Describes demand that is very sensitive to a change in price.
What sets the equilibrium price in a perfect competition environment?
Supply and demand
Do local governments pay for elementary schools and police departments?
Yes
What is the connection between tariffs and imports
Tariffs are taxes placed on imports