Ecomnics

Question 1

regret associated with options not chosen

Answer 1

opportunity cost

Question 2

intangible products

Answer 2

services

Question 3

study of large-scale economic events

Answer 3

macroeconomics

Question 4

satisfaction received from choices

Answer 4

utility

Question 5

study of the choices of individual people, individual households, or indi-
vidual businesses

Answer 5

microeconomics

Question 6

“Feeding the poor should be our government’s greatest economic priority.”

Answer 6

normative economics

Question 7

A ditch digger argues that he should receive $100 an hour because of the
years of practice it has taken him to perfect his craft.

Answer 7

intrinsic value

Question 8

payment for financial capital

Answer 8

interest

Question 9

household withdrawal from an account or borrowing

Answer 9

dissaving

Question 10

tax revenues = $1 million; governmental spending = $900,000

Answer 10

budget surplus

Question 11

payment for entrepreneurship

Answer 11

profit

Question 12

welfare

Answer 12

transfer payment

Question 13

governmental borrowing that prevents businesses borrowing

Answer 13

crowding out

Question 14

4. payment for entrepreneurship

Answer 14

Real capital

Question 15

loans to business firms

Answer 15

financial capital

Question 16

chicken or beef

Answer 16

substitute good

Question 17

satisfaction gained by one more unit of input

Answer 17

marginal utility

Question 18

graphic representation of the law of demand

Answer 18

demand curve

Question 19

the act of buying

Answer 19

demand

Question 20

a shift of a demand curve

Answer 20

change in demand

Question 21

travel on a city bus

Answer 21

inferior good

Question 22

something that a person purchases more of as his income rises

Answer 22

normal good

Question 23

transitional economic system between free markets and governmental ownership

Answer 23

social democracy

Question 24

The government sells businesses back to private individuals.

Answer 24

privatization

Question 25

economic system characterized by private ownership and decision making

Answer 25

capitalism

Question 26

Adam Smith's ideal economic system

Answer 26

classic liberal capitalism

Question 27

Government is no longer necessary since everyone is acting in the best interest of others.

Answer 27

communism

Question 28

economic system that leans toward capitalism but has extremely high taxes

Answer 28

welfare state

Question 29

Gold and silver in the government's treasury are what is important.

Answer 29

mercantilism

Question 30

The government takes possession of key industries.

Answer 30

nationalization

Question 31

A central authority controls resources and makes economic decisions.

Answer 31

socialism

Question 32

private ownership of businesses but with frequent governmental intervention

Answer 32

state capitalism

Question 33

distribution of the nation's income based on each individual's productivity

Answer 33

libertarian fairness

Question 34

distribution of the nation's income based on the equality of each individual

Answer 34

egalitarian fairness

Question 35

"from each according to his ability, to each according to his need"

Answer 35

The Communist Manifesto

Question 36

equipment used to produce goods

Answer 36

capital goods

Question 37

the source of funds for businesses to purchase more-productive equipment

Answer 37

savings

Question 38

number of goods sold causes a change in the price buyers are willing to pay

Answer 38

change in quantity supplied

Question 39

a result of cutting production

Answer 39

leftward shift of the supply curve

Question 40

a barrier preventing a price from falling

Answer 40

price floor

Question 41

caused by a change in production costs

Answer 41

change in supply

Question 42

the price at which both the buyer and seller agree

Answer 42

equilibrium price

Question 43

caused by the prices being higher than the markel price

Answer 43

surplus

Question 44

solved by allowing the price to rise

Answer 44

Shortage

Question 45

demonstrated by rent control

Answer 45

Price celling