Economic Basics
This is the main problem in economics when there are not enough resources to meet people's wants.
What is scarcity?
This type of economy is based on private ownership, free trade, and competition.
What is a market economy?
This is how customers can feel certain that their money stored in U.S. banks is safe.
What is money deposits are insured?
The United States had a trade embargo against this country starting in the early 1960s.
What is Cuba?
This is human time, effort, skills, and talent needed to produce goods.
What is labor?
This is what people would not do without a profit motive, according to the assessment.
What is start businesses?
Taiwan has this type of economy, according to the assessment.
What is capitalist?
This investment option offers a better interest rate than savings accounts and is good for someone buying a car in nine months.
What is a certificate of deposit (CD)?
These three things have helped increase globalization, according to the assessment.
What are airplanes, the Internet, and telecommunications?
A farmer selling milk from dairy cows is an example of this type of industry.
What is primary industry?
These are the four main factors of production needed to create goods and services.
What are natural resources, labor, capital, and entrepreneurs?
In this economic system, the central government makes all economic decisions about production, prices, and wages.
What is a command economy?
This investment option would fall in the upper right portion of a risk-return graph.
What are stocks?
This scenario best illustrates economic interdependence: Japan lacks iron to make steel, so it trades with Australia and Brazil for iron ore.
What is Japan trading with Australia and Brazil for iron ore?
This is money that a business uses to buy the items needed for the business to function.
What is financial capital?
This law states that businesses will produce more of something when they can charge a higher price.
What is the law of supply?
Sweden is an example of this type of mixed economy that falls between capitalist and communist models.
What is socialist?
These are the three main functions that banks serve for customers.
What are store money, earn money (through interest), and borrow money?
This organization works with nations to decrease embargoes, taxes, and quotas.
What is the World Trade Organization?
Inspectors examining the quality of cheese work in this type of industry.
What is quaternary industry?
This is the value of what you give up when making a choice or tradeoff.
What is opportunity cost?
This is what most communist economies lacked that caused workers to have no motivation for better performance.
What are incentives (or profit motive)?
This type of income is money left after paying for basic costs like food and housing
What is discretionary income?
These are companies that operate in multiple countries and often build manufacturing plants where raw materials or labor are cheaper.
What are multinational corporations?
This is the reason governments must ensure that corporate taxes are not too high.
What is businesses will not make a profit?