What is the most desirable alternative given up when people choose one course of action over another
100
What is "thinking on the margin"?
Determining whether or not in producing another unit
100
In creating our airline companies activity, students were working in a competitive market. What market was the game reflecting?
What is free market (American Enterprise)
100
What is the name of the economic system that relies on traditional roles and is simplistic and slow to change?
Traditional Market
200
A contract to buy or sell stock at present date for a present price is called?
Stock options
200
What is trade off?
What is all alternatives that we give up whenever we choose one course of action over another (Kia commercial)
200
What is it term for ways on how the federal, state, and local governments make money
Bonds
200
What incentives do businesses have in order to sell their products?
profit motive
200
The market reflects the __________ and __________ of the economy.
Needs and Wants
300
What are two types of incentives for both buyers and sellers in the stock market?
Capital loss and profits
300
What is the opportunity cost in the following scenario. Mr. Romanelli decided to sleep in instead of making his famous chipotle chicken avocado bacon sandwich?
Opportunity cost is not having the amazing sandwich and have a less delicious lunch.
300
What is the term for investing in a company to own a percentage of the company?
Stocks
300
What are the 3 principles of Free Enterprise system?
1) Profit Motive
2) Open Opportunity
3) Economic Rights
300
What is the difference between command economy and free market?
Command economy is controlled by the government while the free market consumers control the market
400
What contains stocks, mutual funds, investments, and assets?
A portfolio.
400
What is the opportunity cost of attending a fundraiser to receive a free California burrito during class?
Your education or class
400
Define bull market?
Prices are low and it is a buyers market.
400
What is the purpose of competition?
To act as a regulating force in the market place on invisible the hand theory. (consumers buy what they want at the prices they want which reflects the cost of producing them)
400
What are the three economic questions that every economy must address?
1) What goods and services should be produced?
2) How should the goods and services be produced?
3) Who consumes the goods and services being produced?
500
What is Dow Jones?
A ranking system of top 30 companies in the market
500
What system, handles mostly high technology stocks and is the second largest stock exchange in the world
Nasdaq AMEX, GS, etc.
500
What is consumer sovereignty?
Consumers let business know what to produce based on what they demand
500
Who decides the price of goods and services to be produced?
The market
500
What are 3 potential problems of Command Economies?
1) poor quality of goods being produced
2) Shortage of goods and services
3) Lack of incentives and consumer voice