Economic Systems
Circular Flow
Business Investment
The Stock Market
Consumer Protection
Import/Exports
100
What two animals symbolize a rising stock market and a declining stock market?
a bull (up) and a bear (down)
100
What is a comparative advantage?
a country's ability to produce goods at a lower price than its trade partners
100
What economic system is primarily agricultural, has little waste, but also little surplus?
a traditional economy
100
In the resource market, what flows from the businesses to the individuals?
money
100
What type of business has limited liability for individuals and allows you to buy shares of ownership called stock?
a corporation
100
What do you call a share of a company which an individual can buy?
a stock
100
What do you have if your company completely controls their industry and they have no competition?
a monopoly
100
Why do so many of the goods Americans buy come from South East Asia?
they cost less due to low labor costs
200
What economic system has the government controlling all aspects of production, including land, labor, and capitol?
a command economy
200
In the resource market, what flows from the businesses to the individual?
money
200
What type of business is totally owned by one person who makes all the decisions but also assumes all of the liability?
a sole proprietorship
200
Name one reason people buy stock.
to build wealth,
to have a share of the profits of a profitable business
etc.
200
Explain one way the government keeps food safe.
various answers
200
Explain how we find "net exports".
Subtract a countries imports from the exports.
(This could be a negative number.)
300
What type of economy has no government intervention and individual citizens own all of the factors of production?
a free-market economy
300
What flows from the government to the individuals?
services (libraries, schools, roads, fire protection, etc.)
300
Where would you get money to expand your restaurant chain that already has 150 stores?
an investment bank
300
Name one characteristic of a market?
It exchanges private property, (goods and services)
It has competition.
It's goal is to make a profit
It is voluntary
300
Give one example of how the government educates consumers.
various answers
300
What do we call it when you specialize in one particular product or one particular step in the production of a product?
specialization
400
What kind of economic system will you find in Russia?
a mixed economic system.
(All but a few countries have a mixed economic system today.)
400
In the resource market, what flows from the individual ownership to the businesses?
natural resources, human resources, and capital resources
400
Where would you get money to start your new driver-less car company?
venture capital
400
What is the oldest stock exchange?
The New York Stock Exchange
400
Name one way the U.S. government can protect businesses from unfair foreign competition.
tariffs
400
Are low wages in foreign countries a good thing or a bad thing? (Must tell us why.)
Good because we get lower priced goods.
Could be bad if the workers are being exploited (too low wages, long hours, unsafe working conditions)
1000
Name two things that flow from businesses to the government.
goods and taxes
1000
Define "liability."
Being financially responsible for something.
1000
Which stock market lists many of the technology companies?
NASDAQ
1000
What does the Sherman Anti-trust Law do?
It breaks up monopolies
1000
What do you have when your imports are higher than your exports to other countries?
a trade deficit