Econ 1
What is Economics?
The study of how people make decisions and choices to satisfy their needs and wants.
What is a trade off?
Alternatives that are given up when a decision is made.
What type of economic system is base on individuals and businesses making all they key economic decisions?
Free Market
What is an example of government benefits to the poor?
EBT
Social Security are payments for which part of the population?
Elderly.
when does scarcity occur?
when there are limited things that people want/need/
what is an opportunity cost? Or, give an example.
The most desirable alternative that is given up when a decision is made
The economy of the United States is best described as
Mixed
What term refers to government aid to the poor?
Welfare
True or False? The government issues patents.
True.
when does a shortage occur?
When businesses have trouble supplying things people need
Give an example of a country that would not represent free market principles
North Korea, Cuba, China.
The economy of the United States has _____ government involvement
Limited.
What is an externality?
An economic side effect of a good or service.
The former Soviet Union (USSR) was an example of what economic system?
Communism
what are two factors of production?
land, labor, capital.
Give an example of a country that would represent free market principles.
Hong Kong.
Who owns the land and capital in a centrally planned economy?
The government.
What is the poverty threshold?
an income level below that which is needed to support families or households.
What is any human-made resource that is used to create other goods or services?
Capital
What is meant by the "land" factor of production?
Natural Resources used to produce goods/services.
An economy in which only the government makes economic decisions.
Centrally Planned.
The total value of all final goods and services produced in a particular economy.
GDP
What is the doctrine that government generally should not interfere in the marketplace?
Laissez Faire
Which social and political philosophy is based on the belief that democratic means should be used to distribute wealth evenly throughout a society?
Socialism