1.1
The Maasai tribe primarily engage in subsistence activities like herding cattle, which is central to their economy. Cattle serve as a primary source of food, wealth, and status. What type of economic system would they have?
Traditional Economy
This term refers to the value of the next best alternative that must be forgone when a decision is made. It represents the benefits, profits, or value that could have been gained if the resources were allocated to a different option.
Opportunity Cost
The law of demand states that, all else being equal, as the price of a good or service decreases, the quantity demanded increases, and as the price increases, the quantity demanded __________.
Decreases
_____is a factor or reward that motivates individuals or businesses to take a particular action or make specific decisions.
Incentive
When should you start saving for retirement?
Now... seriously.
The Venezuelan government nationalized major industries such as oil, electricity, telecommunications, and food production. This centralized control aligns with the principles of what type of economic system?
Command
A farmers market is an example of what type of market structure?
Perfect competition
The law of supply states that, all else being equal, as the price of a good or service increases, the quantity supplied increases, and as the price decreases, the quantity supplied ___________.
Decreases
___________for a professional are additional financial rewards or incentives given by an employer, typically based on performance, company profits, or achievement of specific goals.
Bonuses
_________are financial accounts, such as 401(k)s, IRAs, and pensions, designed to help individuals save and invest for their retirement with tax advantages.
Retirement accounts
Most businesses and industries in Japan are privately owned, allowing individuals and corporations to make economic decisions regarding production, investment, and operations. What kind of economic system does Japan follow?
Market
______________is a market structure where many companies sell similar but not identical products.
Monopolistic competition
A technological advancement in smartphone manufacturing reduces production costs, leading to an increase in supply. As a result, more smartphones are sold at a _________ price.
Lower
_____________a compensation strategy where a company distributes a portion of its profits to employees, typically based on the company’s performance or a predetermined formula.
Profit sharing
___________is a retirement savings plan offered by employers that allows employees to contribute a portion of their salary on a tax-deferred basis, with potential employer matching contributions.
***FOR PROFIT
401(k)
Programs like Social Security, Medicare, and unemployment benefits show the government’s role in redistributing wealth and addressing social welfare. What type of economic system does the United States follow?
Mixed
The automobile industry (e.g., Toyota, Ford, and General Motors).
The airline industry in many countries.
Telecommunications providers.
These are all examples of what type of market structure?
Oligopoly
A drought reduces the supply of wheat, causing the price of wheat to rise and the quantity of wheat sold to ___________.
Decrease
A ____________ is a graphical representation of the maximum combination of goods and services that can be produced in an economy, given available resources and technology.
Production possibilities frontier
___________is a type of individual retirement account that allows individuals to contribute after-tax income, with the benefit of tax-free withdrawals on qualified distributions in retirement.
Roth IRA
Both the U.S. and_________combine free-market mechanisms with government intervention to balance economic efficiency, growth, and social welfare, making their economies "mixed." The U.S. leans more toward free-market capitalism, while _______ incorporates more state control within its market reforms.
China
If you spend $20 on a movie ticket, the __________________ is what you could have done with that $20 instead—such as saving it or spending it on a meal.
Opportunity Cost
At this point, there is no inherent tendency for the price or quantity to change unless affected by an external factor.
Equilibrium
________is an amount of money that taxpayers can subtract directly from the taxes they owe, reducing their overall tax liability.
Tax credit
___________is a retirement plan where an employer makes regular contributions to provide employees with a fixed income upon retirement, typically based on salary and years of service.
Pension