Intro to econ test 1

Question 0

Economics

Answer 0

How people satisfy their needs and wants by making choices

Question 1

Scarcity

Answer 1

How much or how little something is made

Question 2

Goods

Answer 2

Physical objects like shirts and shoes

Question 3

Services

Answer 3

Actions that one person performs for another

Question 4

Three factors of production

Answer 4

Land, labor, and capital

Question 5

Entrepreneur

Answer 5

Person that starts their own business

Question 6

Opportunity cost

Answer 6

The best thing given up by making a certain decision

Question 7

Economic system

Answer 7

Method used to produce and distribute goods and services

Question 8

Patriotism

Answer 8

Love of your country

Question 9

Standard of living

Answer 9

Level of economic success

Question 10

Traditional economy

Answer 10

Uses customs decide how to produce and consume goods and services

Question 11

Market economy

Answer 11

Free exchange to decide how to produce and consume goods and services

Question 12

Command economy

Answer 12

Government decides how to produce and consume goods and services

Question 13

Mixed economy

Answer 13

Market economy with government involvement

Question 14

Communism

Answer 14

Uses command economy, everyone makes the same money

Question 15

Capitalism

Answer 15

Uses the market economy, money is based on competition

Question 16

Least developed nation

Answer 16

Nation concerned with food, sanitation, disease, and a growing population

Question 17

Developing nation

Answer 17

Nation with workforce, better sanitation, and life expectancies

Question 18

Developed nation

Answer 18

Technological, healthcare, diverse economy, and a steady population

Question 19

Free enterprise

Answer 19

Individuals make economic choices and start businesses in a free-market

Question 20

JD Rockefeller

Answer 20

Around 1900, he started standard oil, the largest oil company in history

Question 21

Andrew Carnegie

Answer 21

Around 1900, he started US steel and became the richest person in US history

Question 22

Bill Gates

Answer 22

Started Microsoft and became a billionaire

Question 23

Profit motive

Answer 23

Force that makes people and organizations improve

Question 24

Open opportunity

Answer 24

Anyone can compete in the free-market

Question 25

Voluntary exchange

Answer 25

People can decide what they want to buy

Question 26

Macroeconomics

Answer 26

The study of entire economies

Question 27

Microeconomics

Answer 27

Study small economic units, like families or businesses

Question 28

Gross domestic product(GDP)

Answer 28

Value of goods and services in economies

Question 29

Four phases of the business cycle

Answer 29

One – general prosperity: economy growing up Two – boom period: Economic activity at its peak Three – economy starting to slow down Four – recession

Question 30

Public sector

Answer 30

Involves the government

Question 31

Private sector

Answer 31

Involves individuals and businesses

Question 32

Welfare

Answer 32

Government aid to the poor

Question 33

What level of government is responsible for welfare programs?

Answer 33

Federal

Question 34

Social Security

Answer 34

Money from the government to every American over 65

Question 35

Medicare

Answer 35

Government health insurance to people over 62

Question 36

Medicaid

Answer 36

Government health insurance to lower income people