What gets made, how it gets made, who it gets made for.
What are the three economic questions?
100
The people can decide what agreements they want to enter into.
What is a free contract
100
1) Business owned by an individual
2) Unlimited liability for business owner
3) Owner receives all profits and makes all decisions
What is a sole proprietorship
100
1) Used to meet short term financial goals
2) Withdrawn when needed
3) Insured by the FDIC up to $250,000
What is a savings account
200
Land, Labor, Capital, Entrepreunership
What are the four factors of production?
200
1) Tradition determines what kinds of goods and services are provided
2) Methods of production have remained the same for generations
3) Litttle or no incentive to use new technologies
4) People do what there parents did before them
What is a traditional economy
200
Everyone can compete in the marketplace.
What is open opportunity
200
1) Business is owned by two or more people
2) Unlimited liability for at least one of the owners
3) Shared decision making and specialization by owners of the business
What is a partnership?
200
1) Time value of money
2) Credit Risk
3) Inflation Rate
What are factors that determine mortgage rates
300
The alternative that was given up when a decision is made
What is opportunity cost
300
1) Government owns all factors of production.
2) Government determines what goods are produced and what services are provided.
3) Little incentive for workers to be efficient.
What is a command economy?
300
Everyone has the right to control their own possessions.
What is property rights
300
1) Legally considered an individual (can buy and sell property, higher and fire workers, enter into contracts and lawsuits)
2) Limited liability all owners
3) Owners surrender decision-making to board of directors and managers
What is a corporation?
300
Putting money into different types of investments
What is diversification
400
a)When there is not enough of a good to meet demand?
b)Satisfying unlimited wants with limited resources.
What is a) Shortage; b) Scarcity
400
1) Private ownership of the means of production
2) Consumers decide what gets made and who it is made for (competition)
3) No government involvement
What is free market economy
400
Someone who enjoys the benefits of a good or servie without paying for it
What is a free rider?
400
1) Price and availability of inputs
2) Opporunity costs of alternative production
3) Technology
4) Taxes and Subsidies
5) Expectations of future profits
6) Number of sellers
What are Determinants of Supply
400
1) Keeping money in a safe place
2) Money is insured up to $250,000
3) Transactions can be monitored (tracked)
What are benefits of having a bank account?
500
a) An item produced to satisfy wants or needs
b) Something one does for someone else in return for money
What is a a) good; b) service
500
1) Private ownership of the means of production
2) Government regulation of industries
3) Consumers choose who goods and services are provided for (competition)
What is a mixed economy
500
A good or service that can be consumed without reducing the amount available for others and cannot be witheld from those who do not pay for it
What is a public good
500
1) Tastes and preferences
2) Number of consumers
3) Price of related goods
4) Income
5) Future expectations
What are determinants of demand
500
1) Paying property taxes
2) Making payments on mortgage
3) Keeping up with maintenance and repairs