Unit 1
What is scarcity?
There are not enough resources to meet all human wants.
What do we call the point at which supply meets demand?
Equilibrium
What is the main advantage of a labor union?
Collective Bargaining
Who created the First Bank of the United States?
Alexander Hamilton
A house would normally be considered a ___________ asset.
appreciating
Who is the father of socialism?
Karl Marx
What is the law of demand?
The higher the price, the lower the quantity demanded.
What business type would have unlimited life?
A corporation.
Who destroyed the Second Bank of the United States?
Andrew Jackson
Oakley only having one grocery store gives Clark's what type of monopoly?
Geographic
What are the 4 factors of production?
Land, labor, capital, entrepreneurship.
Coca-Cola and Pepsi dominating the soda market while still in competition with each other would be an example of _____________.
Oligopoly
Levi's making clothes in Bangladesh would be an example of _______.
Outsourcing
How does the dollar control world trade?
It is used for commodities such as oil and grain.
When Farmer's Corner bought Searle's, what type of merger was it?
Horizontal
Who is the father of capitalism?
Adam Smith
What is demand?
The desire for something and the ability to pay for it.
What is the maximum score possible on a credit score?
850
What have we called depressions since 1930?
Recessions
What type of government intervention in the economy would play a major role in an agricultural town such as Oakley?
Farming Subsidies
What are the four types of economic systems?
Traditional, market, command, mixed.
A price floor would most likely cause _________.
a surplus
If Pepsi were to buy Coca-Cola, this would be what type of merger?
Horizontal
What type of currency is the US dollar?
Hint, it is not based on gold.
Fiat Currency
What is the basic economic problem?
There are unlimited needs and wants, and only limited resources.