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Flashcards in Chapter 1 test Deck (78)
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1

the method a country uses to answer the three economic questions

economic system

2

Lady Gaga has $355 to spend.  She decided to use the money to buy face paint instead of going to the symphony.  Lady  Gaga has ________.

made an economic tradeoff

3

3rd largest producer

Japan

4

_______ means not having enough resources to satisfy every need

scarcity

5

not having enough resources to satisfy every need

scarcity

6

If surplus occurs, what can be done to fix the problem?

lower the price

7

______ is the process of choosing which wants and needs will be satisfied

economic decision making

8

What country is the largest producer of goods and services

United States

9

A demand curve illustrates the relationship between quantity demanded and ____

price

10

A ____ is anywhere the economic transactions take place

market place

11

true or false

 

Both individuals and organizations can be producers

true

12

List the 6 steps of the decision making process.

  1. define the problem
  2. identify the choices
  3. evaluate the advantages and disadvantages of each choice
  4. choose one choice
  5. act on your choice
  6. review your choice

13

When many more people wish to purchase a product it's price will tend to ____

increase

14

Individuals and organizations that determine what products and services will be available for sale are called ____

producers

15

Which of the following would an economist most likely classify as a need?

  1. gasoline for a florist's delivery truck
  2. a college degree
  3. a flat screen tv
  4. a part time job to earn extra money

gas for a florist's delivery truck

16

The primary reason business owners make investments and take risks in a private enterprise economy is to

  1. make a profit
  2. satisfy customer needs
  3. develop new products
  4. meet government requirements

make a profit

17

A person who buys or uses goods and services is called a ____

consumer

18

The money left over from sales after all the costs of operating a business have been paid is called ____

profit

19

Give examples of capital resources.

money, machinery, investors, equipment, factories, buildings, computers

20

______ are businesses offering very similar products to the same customers

competitors

21

____ refers to the quantity of a good or service that businesses are willing and able to provide

supply

22

Things that are not necessary for survival but add pleasure and comfort to your life are called ____

wants

23

As competition increases, prices

  1. usually increase as well
  2. are not affected so will usually not change
  3. usually will decrease
  4. there is no way to predict what will happen to prices due to competition

usually will decrease

24

Which of the following address the economic question of how to produce?

  1. growing corn instead of potatoes
  2. requiring individuals to complete specific types of work
  3. producing more capital goods and few consumer products
  4. selling natural resources to other countries

requiring individuals to complete specific types of work

25

A vacation to Belize would be considered a _____

want

26

____ are things that are required in order to live

needs

27

If the quantity of an item supplied is greater than the quantity of an item demanded, a ___ will occur.

surplus

28

John has two hours before having to go to his part time job.  He is deciding between studying for a math exam and taking a nap.  If John chooses to take a nap, the opportunity cost of his decision is

  1. the rest he is getting
  2. the score he will earn on the math exam
  3. the wages from his part time job
  4. all of the above

the score he will earn on the math exam

29

The US economy is sometimes referred to as _____ or _____

free enterprise or private enterprise

30

true or false

 

It is not always easy to determine the products and services that satisfy needs and those that satisfy wants.

true