Basic Concepts
Name one example of an 'economic agent' in our society
CONSUMERS / FIRMS / GOVERNMENT
True or False: Diamonds are the rarest precious jewels in the world
FALSE
True or False: In a free market economy, the basic needs of all citizens is almost always met
FALSE
UBI is an acronym for ____________
Universal Basic Income
The social science that studies the production, distribution, and consumption of goods and services, and the choices and incentives that surround them is called _____________
ECONOMICS
Define marketing
The creation of wants in order to increase sales of goods and services and, ultimately, revenue/profit
Name the economic system: ‘In Minhasistan, business owners make most economic decisions. As long as they don't violate antirust laws and health regulations, they can decide what to produce, how to produce, and for whom to produce.’
MIXED ECONOMY
True or False: A majority of Americans are against UBI
FALSE
The gap between limited resources and theoretically limitless wants is also called __________________
SCARCITY
Define 'conspicuous consumption'
When consumers buy expensive items to display wealth and income, rather than to cover the real needs of the consumer.
Name the economic system: ‘State planners in the Republic of Venice meet to decide what the country should focus on producing. After much deliberation, they pass their decision down to factories'
COMMAND ECONOMY
True or False: One possible disadvantage of UBI is that it could increase the national debt and divert money away from public schools
TRUE
If the firm shifts from Combo A to Combo B, the Opportunity Cost is __________
10,000 laptops
True or False: The average income of middle-class Americans has not increased much over the past 30 years . This is an important cause of conspicuous consumption
FALSE
In a mixed economy, governments prevent monopolies and collusion mainly though _____
Antitrust laws
True or False: One of the characteristics of UBI is that it is 'unconditional'
TRUE
If the firm shifts production from Combo B to Combo A, the opportunity cost is _______
15,000 phones
Name the corporation that, until very recently, had a monopoly on the diamond industry
De Beers
Name an example of a public good or service that governments provide
Public schools, public parks, fire departments, police departments, the DMV, etc
The loss of jobs as a result of advancements in technology is known as ______
AUTOMATION