All about Markets
What is an organization that uses resources to produce and sell goods and services?
A firm
What is an economy when the 3 basic questions in economics are made by voluntary exchange in markets?
free market economy/Capitalism
What is commitment to the value of hard work?
Work ethic
What is the name of government assistance programs for those in poverty?
Welfare
What is the ability to make decisions to improve your economic well-being?
Profit motive
What is any place where buyers and sellers complete transactions
market
What goods and services should be produced?
How should these goods and services be produced?
Who consumes these goods and services?
the three basic questions in economics
What is provided to people from the product markets?
Goods and services
What is an economy where the central government owns and controls all resources and makes all economic decisions?
Communism
Which economic goal of society is the ability to make our own economic decisions both as consumers and producers
economic freedom
If everyone can drive on roads including those who don’t help pay for it, than roads are considered a ___________________ and is paid for by tax dollars.
public good
What is the amount of money a business gets to keep after paying all of its expenses?
Profit
What is the total value of all goods and services produced in one country in one year?
Gross Domestic Product
What are economic side effects of a good or service to someone else who doesn’t pay for the item?
externalities
Profit motive
Competition
Economic freedom
basic characteristics of free enterprise
Which of the following is an economy where the government rather than individual consumers and producers answer the 3 basic questions of economics?
Centrally planned/Command economy
Which of economic goals of society provides protection from negative economic effects?
Economic security
If someone benefits from a neighbor on their street doing a great job keeping up the outside of their house, then for that person the condition of the neighbor's yard is a:
Positive externality
entrepreneur
consumer
government
three important roles in a free enterprise system
What is the study of economic behavior and decision-making in small units such as households and firms?
Microeconomics
What is the process of selling government businesses to people?
Privatization
Which type of market is where land, labor, and capital are produced?
Factor market
What is an economy where economic activity is based on rituals, customs, or habit?
Traditional economy
Which economic goal of society is using resources wisely
economic efficiency
Social security
Medicare
Food stamps
transfer payments that the U.S. government often provides
What is the name of consumers and producers deciding what to buy and sell?
Voluntary exchange
What is an organized way for producing and distributing goods and services?
economic system
What is the part of the economy where businesses make and sell items directly to consumers?
Private sector
How do most people earn money to buy goods and services from the product markets?
By providing labor in the factor market
What is an economy that has some market-based elements and some government involvement?
mixed economy
Which economic goal of society provides fairness of how resources are divided through a lack of discrimination
Economic equity
If someone is harmed from a neighbor on their street constantly having a mess in front of their house, then for that person the condition of the neighbor's yard is a:
Negative externality
What is the role of consumer as ruler of market to choose which products and businesses are successful and which are not?
Consumer sovereignty
What is the study of economic behavior and decision-making in a nation’s whole economy?
Macroeconomics
What is the process of changing from one economic system to another?
Economic transition
What are payments people receive for land, labor, and capital?
Factor payments
What is an economy with the belief that wealth should be evenly distributed throughout society.
Socialism
What happens when economic goals come in conflict with each other?
This requires tradeoffs and examining values
What is an income level that those below it qualifies for government assistance?
poverty threshold
Chilis and Aplebees each offering a 3 course menu to try to convince customers to buy food from them and not the other restaurant is known as
Competition
What is the name for a situation where the free market fails to distribute resources efficiently?
Market failure
Which economist from the 1700s theorized that an economy can largely run itself with people acting in their own self-interest?
Adam Smith
What is the belief that anyone can compete in the marketplace?
Open opportunity
Which country has been a communist government since the late 1940s but reformed to allow a lot more economic freedom, which allowed significant economic growth; now the world’s second largest economy after the United States?
China
Maximum employment
Economic growth
Secure financial markets
Price stability
the 4 Economic goals of society (one of those will be replaced by a wrong answer on the test, which you will need to find)
What are basic facilities like roads and bridges necessary for an economy to function and grow?
Infrastructure
Protecting private property
Enforcing contracts
Issuing taxes so it can provide public goods
roles of government in a free enterprise system/Capitalism
What is having a job or assigning one specific task per person based on their strengths
Specialization
What governments are always authoritarian where governments limit individual freedom and require strict obedience from its citizens.
Communist
What is the belief that the government should not get involved in the economy?
Laissez faire
Which was a major former Communist country until economic weaknesses caused it to collapse back into Russia, Ukraine, and 13 other countries in the early 1990s?
Soviet Union
What is the level of economic prosperity per person, which increases as economic growth increases?
Standard of living
Many of these necessary to protect people, but too much can hurt economic efficiency.
government regulations
What are rewards or punishments that try to get people to behave a certain way?
incentives
What is the alternating patterns of economic expansion and contraction in an economy?
business cycle
What are laws made to require businesses to give truthful information about their products and services?
Public disclosure laws