Ben's family purchased a dishwasher so that the family members could save time for more productive activities. What kind of capital is this?
What is physical character
100
How has the role of Government in the market economy advanced since Adam Smith's time?
What is Government has become more involved.
100
Describe a centrally planned economy.
What is consumers needs are not met, workers lack incentives to be innovative, and individual freedoms are sacrificed for societal goals.
100
What is an example of a positive externality?
What is increased tourism due to a bridge being built.
100
What is a negative externality for a family buying a computer.
What is children playing games on it instead of doing homework.
200
If a country decides to spend more on military goods and less on consumer goods, this is an example of what?
What is "guns and butter".
200
What is the purpose of a free enterprise system?
What is to give consumers freedom to make economic choices.
200
Why does the government use its power to make sure that businesses disclose so much information to the public?
What is to make buyers knowledgeable and safer.
200
What is an example of a public good?
What is national parks, highways, libraries etc.
200
What are sine advantages of a mixed economy?
What is consumers have choices but government regulates products for their safety. For example: disclaimer on cigarettes.
300
By the end of the summer, Jason had saved enough money for college from his job as a waiter. He even had some money left over. Although he wanted both, he decided to buy a DVD player rather than a digital camera. What is the digital camera in this scenario?
What is the opportunity cost.
300
What are some of the basic principles of free enterprise?
What is profit motive, legal equality, private property rights, free contract, and competition.
300
What economic goal is difficult to achieve in a free market system?
What is economic equity.
300
A person who consumes a good or service but does not pay for it is called what?
What is a free rider.
300
What kinds of protection have U.S. citizens come to expect from their government?
What is the government will protect rights and contracts, assure safe food and drugs, keep the environment clean, and provide safety nets.
400
What does the factor market involve in the free market economy?
What is firms purchase factors of production from households.
400
What are some reasons for why a government should provide a good or service as a public good?
What is the service should be available to everyone, or it would be impractical to make consumers pay individually.
400
Households pay firms for goods and services. Firms supply households with goods and services. The purchase and supply of goods and services takes place in which market?
What is the product market.
400
A new runway has opened up at the airport, and the flight path goes directly over your apartment. The noise of the airplane is a
What is a negative externality.
400
What is an example of an entrepreneur?
What is people who decide how to combine resources to create new goods and services.
500
Self-interest drives the free market. What is a force that regulates the market?
What is competition
500
The economy of China is in transition. What does this mean?
What is the economy is moving from central planning toward a market-based system.
500
A person who would disapprove of government funding of education believes in this type of economy.
What is laissez faire economics.
500
Jeff and Margaret qualify for Section 8 housing, a subsidized housing program from the federal government. What kind of benefit are they receiving?
What is in-kind benefit.
500
I only have enough money to buy either am espresso machine or food or the next month. I decide to buy an espresso machine. What is the opportunity cost?