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Market Economy
Factors of prodution
Unemployment
Money
Misc.
100
What is a market Economy?
Economic system in which decisions are based on voluntary exchange, or trade, in markets.
100
Name a factor of production.
capital, land, labor, entrepreneurship.
100
People who are underemployed are...
people who work part time or at jobs that are below their skills.
100
Private ownership of property and resources, profit, competition, consumer sovereignty and individual choice characterize this type of economy -
Free Market
100
What is an exchange rate?
comparing currencies.
200
In a market economy, high wages depend mostly on A. responsible business leaders B. high output per worker C. actions of the government.
B. high output per worker
200
a basic role of entrepreneurs in the economy is to A. tell government what new products to produce and sell. B. take the risks associated with starting new businesses. C. buy and sell the common stocks of corporations. D. limit the liability of investors in new businesses.
B. take the risks associated with starting new businesses.
200
What is frictional unemployment?
taking the time to find a job.
200
what primary function is money serving when it is used to buy a sweater at the mall.
medium of exchange.
200
Inflation is an increase in... A. interest rates over time. B. standard of living over time. C. real gross domestic product over time. D. the general level of prices over time.
D. the general level of prices over time.
300
markets allow us to A. get the highest prices for what we sell B. get the lowest prices for what we buy C. sell the most goods we possibly can D. exchange the things we have for the things we need.
D. exchange the things we have for the things we need.
300
What do economists consider to be a productive resource? A. common stock in a computer business B. corporate bonds of an oil company C. machines in an auto plant D. money in a bank
C. machines in an auto plant
300
What determines what is purchased?
consumer preference and price
300
Which would usually reduce total spending in the economy? A. a decline in consumer incomes B. a reduction in personal income tax rates C. an increase in investment in new plant and equipment.
A. a decline in consumer incomes
300
the U.S. uses which kind of currency? A. fiat money B. representative money C. gold and silver
fiat money.
400
In a competitive market, the price of shoes is likely to be increased by? A. a decrease in the supply of shoes? B. a decrease in the demand in shoes? C. more capital investment in shoe factories? D. new machines reducing the cost of shoe production?
A. a decrease in the supply of shoes
400
What is the difference between physical capital and human capital?
physical refers to human-made resources. human refers to knowledge and skills.
400
when a farm worker loses his job after the harvest, it is an example of what kind of unemployment?
seasonal
400
Profits are equal to total a. revenue minus total cost B. assets minus total liabilities c. sales minus wages and salaries D. sales minues taxes and depreciation.
a. revenue minus total cost
400
Who makes economic decisions in the U.S.?
INDIVIDUALS, BUSINESSES AND GOVERNMENT
500
Which of these are a question we must all ask ourselves? A. how big should the army be? B. How much money should be raised in taxes? C. what goods and services should be produced?
C. what goods and services should be produced?
500
Why are goods and services scarce?
the land, labor, capital used to create them are scarce.
500
An economy will typically experience a decline in its unemployment rate when there is A. an increase in population. B. an increase in economic growth. C. a decrease in consumer incomes. D. a decrease in business investment.
B. an increase in economic growth.
500
a decrease in real interest rates provides an incentive for people to save A. more and borrow more. B. less and borrow less. C. more and borrow less. D. less and borrow more.
D. less and borrow more.
500
the exchange rate between the U.S. dollar and the German mark changes from $1.18 marks to $1.16 marks. This change means that.... a. U.S. goods will be more expensive for Germans. b. German goods will be more expensive for Americans c there will be an increase in U.S. imports from Germany. d. there will be a decrease in German imports from U.S.
b. German goods will be more expensive for Americans (now we can't buy as many of their marks for our dollar)