Economic Concepts
This basic economic problem exists because resources are limited but wants are unlimited.
In this type of economy, buyers and sellers freely exchange goods and services.
Market Economy
This term means the quantity consumers are willing and able to buy at a given price.
Demand
Products that are bought from other countries are called these.
Imports
Which situation is an example of unethical behavior?
A. Advertising product features honestly
B. Following safety regulations
C. Hiring a relative without fair evaluation
D. Recycling materials
C - Hiring a relative without fair evaluation of other applicants
This term describes the total value of all final goods and services produced in a country in one year.
Gross Domestic Product (GDP)
In this economic system, the government decides what and how much to produce.
Command Economy
This term means the quantity businesses are willing and able to provide at a given price.
Supply
When a country exports more than it imports, it has this.
trade surplus
Which term refers to a name used to distinguish a product from competitors?
A. Patent
B. Logo
C. Brand
D. Copyright
C - Brand
This condition occurs when the business cycle is at its highest point and demand is strong.
Prosperity
Business Cycle
Recession, Depression, Recovery, Prosperity
If the U.S. became a pure market economy, which change would most likely occur?
A. Public schools would remain government funded
B. Prices would be government controlled
C. All services would be privately provided
D. Taxes would increase
C. All services would be privately provided
What happens when prices are too high?
A. Supply decreases
B. Consumers buy more
C. Consumers buy less
D. Demand increases
C - Consumers buy less
This term means the value of one country’s currency compared to another
exchange rate
These are principles of morality or rules of conduct in business.
Ethics
An increase in GDP over several years most strongly suggests that which factor increased?
A. Inflation
B. Productivity
C. Imports
D. Scarcity
B - Productivity
Which question is being answered when a business decides which goods to produce?
A. For whom to produce
B. How to produce
C. When to produce
D. What to produce
D. What to produce
Which statement about prices is true?
A. Prices affect only demand
B. Prices affect only supply
C. Prices are affected by supply and demand
D. Prices are set by consumers
Prices are affected by supply and demand
This occurs when a country imports more than it exports
trade deficit
Which consumer right is satisfied when companies provide clear product information?
A. Right to choose
B. Right to be informed
C. Right to be heard
D. Right to remedy
B - The Right to be Informed
This situation occurs when supply exceeds demand, such as when Target ordered too many PlayStations.
Surplus
The US is a Mixed Economy - If the United States were a pure market economy, the government would not operate these services. Provide 2 examples.
police, schools, roads, and the military
This point on a supply and demand graph shows where quantity supplied equals quantity demanded.
Equilibrium or Market Price
When a government completely stops the import or export of a product, it is called this.
Embargo
Which factor do comparative shoppers typically evaluate?
A. Price only
B. Quality only
C. Services only
D. Price, quality, and services
D - Price, Quality, and Services