Chapter 1
What does TINSTAAFL stand for?
What is ”There is no such thing as a free lunch”
T or F: The United States is a communist economy.
False; Mixed: capitalism & socialism
T or F: All levels of government spend less than all private businesses combined.
False
The fundamental economic problem facing all societies resulting from a combination of scarce resources and people’s virtually unlimited wants
What is Scarcity?
The alternative that must be given up when one choice is made rather than another.
What are Trade-Offs?
He coined the term “invisible hand.”
Who is Adam Smith?
This owns most of the resources in a market or in a market economy.
What are Individual People/Businesses?
“FCC” stands for this.
What is Federal Communications Commission?
This term best describes the value of the next best alternative that was not taken.
What is Opportunity Cost?
The ability or capacity of a good or service to be useful and give satisfaction to someone.
What is Utility?
A products ____ depends on both its utility & its scarcity.
What is Value?
Socialism is this kind of economy.
What is Command?
_____ motive is largely responsible for the growth of a free enterprise system
What is Profit?
The sum of tangible economic goods that are scarce, useful, and transferable from one person to another; excludes services.
What is Wealth?
The economic system in which private citizens own and use the factors of production in order to generate profits.
What is Capitalism?
The difference between a durable & non-durable good.
Durable: lasts more than 3 years
Non-durable: lasts less than 3 years
This is the objective of capitalism.
What is Profit Gain?
They ultimately decide WHAT to produce.
Who are Consumers?
The tool, equipment, or other manufactured good used to produce other goods and services; a factor of production.
What is Capital Good?
The meeting place or arrangement through which buyers and sellers interact to determine price and quantity of an economic product; may be local, regional, national, or global.
What are Markets?
The 4 categories goods are characterized into.
What is Durable, Non-Durable, Consumer, & Capital?
The 3 things economies are based on.
What is Tradition, Command, & Market?
What does the government do to help protect citizens from false advertising, unsafe food and drugs, environmental hazards, and unsafe products?
Government passes laws
The act of buyers and sellers freely and willingly engaging in market transactions; a characteristic of capitalism and free enterprise.
What is Voluntary Exchange?
The economic and political system in which factors of production are collectively owned and directed by the state; based on a theoretically classless society in which everyone works for the common good.
What is Communism?