EC-907
What is the meaning of markets?
Markets are arrangements for the buying and selling of goods and services. Economic
markets are made up of both buyers and sellers.
Every society must develop a system for deciding how it will use its resources so that it can what?
Meet people's needs
What gross profit shows business owners the difference between what they’ve...
Spent and Recieved
Warranties, surety bonds, and rental/lease agreements are examples of ___ (or shifting) risk to other people...
Transferring
What does Oligopoly mean?
A market structure in which there are relatively few sellers, and industry leaders usually determine prices
Participants mean what?
Participants include producers, consumers, and government. Producers make or provide products, and the government makes and enforces the country's laws.
Next question is... Who answers the basic economic questions in a private enterprise economic system?
Business and individuals
Alright next question. Business owners are usually interested in net profit because they want to know what they can
Keep
Businesses can’t control many financial risks, including inflation and interest rate fluctuations. These are ___ financial risks?
External
What does Regulated Monopolies mean?
A monopoly that the government allows to exist legally under controlled conditions.
What does medium of exchange mean?
A medium of exchange is something of value that can be used to obtain goods and
services. The most common medium of exchange is money.
The next question is... One of the results of freedom in the marketplace is that...
people can buy anything they can afford that can legally be sold.
The next question is... If no profit is generated in the long run, a business must...
Shut down
A store sells CDs and VHS tapes. This store is becoming obsolete due to advances in technology. What risk is this?
Strategic
What is the definition of Sherman Antitrust Act?
A federal regulation intended to prevent monopolies from forming and prices being fixed.
Next question is... What does communism
In a communist command economy, the government owns and controls practically all of the means of production and distribution.
Alex owns a guitar, several books, and a telescope. Alex’s possessions are examples of what?
Private Property
So to use resources wisely, business owners must reduce what?
Waste
The act of reducing or removing risks by shifting the risk factor to another person or business is referred to as __________ risk.
Transferring
One way that competition helps build a prosperous society is by what?
Creating new jobs
Next up is... An economic system is...
The organized way in which a country handles its economic decisions and solves its economic decisions.
Which of the following is a benefit of the freedom to own private property?
It encourages people to save and invest.
Which of the following is an external situation in which people are out of work and can’t afford “extra” purchases:
Bad economy
Nex question is:Which of the following is an example of a business risk that cannot be covered by insurance?
Increase in interest rates
One of the ways that competition benefits customers is by encouraging businesses to what?
Improve their existing products