Econimcs Unit Final

Question 1

what is Adam Smith known for

Answer 1

father/founder of capitalism

Question 2

what does laissez faire mean

Answer 2

beleif that the govrnment should keep their hands out of buisiness

Question 3

whats a monopoly

Answer 3

exclusive control of markey supply usually within a componany

Question 4

oligopoly

Answer 4

when a small number of businesses or companies control a very large share of the market

Question 5

what are the 4 features of a market economy

Answer 5

supplyand demand, incentive, competition, private ownership

Question 6

what are the 4 stages of the business cycle

Answer 6

prosperity, recession, depression, recovery

Question 7

what are the types of businesses in market economys

Answer 7

corporations, private business, partnerships, franchises

Question 8

what are corporations

Answer 8

when a large number of people are working together

Question 9

whats a private business

Answer 9

small buisness where the individual owner is totally responsible

Question 10

whats a partnership

Answer 10

formed through agreements between 2 or more people

Question 11

franchises

Answer 11

sell the right to use their name and ideas

Question 12

mercantilism and who is it controlled by

Answer 12

the aim of economic pursuits should be to strengthen the power and wealth of the state; government controlled

Question 13

what did enclosure acts do

Answer 13

common land became the private property of an individual

Question 14

5 economic principles of classic liberalism

Answer 14

economic freedom, individual freedom, private property, self-interest, competition

Question 15

egalitarianism

Answer 15

all people should be treated as equals and have the same political, civil, economic and social rights under the law

Question 16

equality of oppurtunity

Answer 16

minimum wage, no discrimination in policies, practices or when hiring employes within the workplace

Question 17

equitable distribution of income

Answer 17

equal wages for work of similar values; people with larger incomes pay high taxes

Question 18

command economy

Answer 18

high degree of government involvement in the economy

Question 19

mixed economy

Answer 19

government control of major means of production

Question 20

free enterprise economy

Answer 20

low degree of government intervention in the economy

Question 21

equivelent names to command economy

Answer 21

planned, central

Question 22

equivelant names to free enterprise economy

Answer 22

free economy, market economy

Question 23

3 basic economic questions

Answer 23

what goods should be produced, how should goods be produced, who should the goods be produced for

Question 24

whats capital

Answer 24

money used to generate income

Question 25

whats labour

Answer 25

effort people make to produce the goods or services

Question 26

whats land

Answer 26

natural resources that are used to produce goodsw

Question 27

hats scarcity

Answer 27

limited resources and limited wants that results in an increase in price

Question 28

whats the fiscal policy during recessions and depressions

Answer 28

reduce taxes and increase government spending

Question 29

whats the monetary policy during recessionsa nd depressions

Answer 29

lower interest rates

Question 30

whats the fiscal policy during prosperity and recovery

Answer 30

increase taxes and decrease government spending

Question 31

whats the monetary policy in prosperity and recover

Answer 31

increase interest rates

Question 32

what is adam smiths theory of the business cycle

Answer 32

the government should do nothing and the market will naturally reajust through its self regulating mechanisms

Question 33

whats john maynard keynes theory on the buisness cycle

Answer 33

the economy moves in peaks and valleys so the government should help to level these out in order to create a smooth economy

Question 34

whats profit motive

Answer 34

the desire for profit that motivates one to engage in business ventures

Question 35

consumer sovereignty

Answer 35

power of consumers to determine what goods and services are produced

Question 36

invisible hand theory

Answer 36

in a competitive buisness enviornment, everyone will pursue their own self interest

Question 37

whos john maynard keynes

Answer 37

economosit who supported the idea that governments should be more involved in the economy

Question 38

whats a welfare state

Answer 38

when the state plays a key role in the protection and promotion of the economic and social well-being of its citizens

Question 39

whats deficit

Answer 39

the gap between wheat the government spends and what the government takes in

Question 40

whos the father of utopion socialists

Answer 40

robert owen

Question 41

what are the problems of a mixed economy

Answer 41

high taxes, hard decisions, large beuracricies

Question 42

budget surplus

Answer 42

revenue exceeds cost

Question 43

budget deficite

Answer 43

cost exceed revenues

Question 44

tariffs

Answer 44

tax placed on imports

Question 45

subsidies`

Answer 45

incentives to encourage the private industry to set up a company

Question 46

progressive tax

Answer 46

tax rate whereby the rich are taxed more heavily then the poor

Question 47

flat tax

Answer 47

tax rate where the rich pay the same amount as the poor

Question 48

nationalized

Answer 48

when the government takes over a buisness

Question 49

crown corporation

Answer 49

buisnesses that are run and operated by the government

Question 50

who was FDR

Answer 50

first american president that began to experient with government involvement where government money would be used to stimulate the eocnomy

Question 51

whats the new deal

Answer 51

FDRs economic plan to stimulat economic growth during the great depression

Question 52

trade barriers

Answer 52

enacted by governments to protect hteir nations economy

Question 53

corporate executives

Answer 53

term given to the bosses or most powerful decision makers in a company

Question 54

production technology

Answer 54

when workers are replaced by machines to be more productive