Module 1

Question 1

refers to the study of how individuals, businesses, governments, and societies allocate and manage resources to satisfy human wants and needs

Answer 1

Economics

Question 2

Also known as factors of production, are the resources used to produced goods and services

Answer 2

Economic Resources

Question 3

Refers to the limitation of resources

Answer 3

Scarcity

Question 4

refers to products or services which are not available in the required quantity

Answer 4

Shortage

Question 5

is a social science which analyzes the production, consumption and distribution of goods and services.

Answer 5

Economics

Question 6

Understanding the economy as a system

Answer 6

Microeconomics

Question 7

Examines the economy as a whole.

Answer 7

Macroeconomics

Question 8

Analyzes the flow:of goods between nations

Answer 8

International Economics

Question 9

Economic theorvts the field in which the models are derived and applied to cument problems.

Answer 9

Theories

Question 10

This is concerned with international banking, monetary exchange rates, tariffs and the effects of different economic and governmental systems.

Answer 10

International Economics

Question 11

The goal of economists in developing theories is that they require less information and lead to more accurate results

Answer 11

Theory

Question 12

Economic history is the field which focuses on economic theories and writings of the past

Answer 12

History

Question 13

Many decisions of today are made based on the theories and ideas of former economists and scholars

Answer 13

History

Question 14

is concerned with describing and explaining economic phenomena as they are, without making value judgments or expressing opinions.

Answer 14

Positive Economics

Question 15

It involves making value judgments and recommendations about what ought to be done expressing opinions about desirable economic policies.

Answer 15

Normative Economics

Question 16

Focuses on values and preferences

Answer 16

Normative Economics

Question 17

Focuses on facts

Answer 17

Positive Economics

Question 18

Study of the relationship of Positive and
Normative Economics.

Answer 18

Applied Economics

Question 19

refers to the way in which the decisions about producing goods and services are made within a given society and the rules that govern distribution of those. Who decides what to produce and how? Who owns the resources? How are the produced goods to be allocated to their end users?

Answer 19

Economic System

Question 20

consumers’ behavior drives the production

Answer 20

Market Economy

Question 21

The government does not intervene in the running of the economy beyond setting up the basic, large-scale, stable framework for the market to operate in

Answer 21

Market Economy

Question 22

The decisions of the government drive the production

Answer 22

Command Economy

Question 23

A mix of both market economy and command economy.

Answer 23

Mixed Economy

Question 24

Because of economic evolution, most economies adapted to a _______________ for balance

Answer 24

Mixed Economy

Question 25

Market Economy (A) Efficiency

Answer 25

Efficient in resources allocation

Question 26

Market Economy (A) Innovation

Answer 26

Innovative in improving products and services

Question 27

Market Economy (A) Individual Freedom

Answer 27

Freedom of individual to choice what to sell and what to buy

Question 28

Market Economy (B) Inequality

Answer 28

Inequality to the resources since wealth can have more than the others

Question 29

Market Economy (D) Market Failure

Answer 29

It is caused by not always allocating resources efficiently.

Question 30

Market Economy (D) Cyclical Instability

Answer 30

It is a cycle of an economy that can have a negative and positive things that happen

Question 31

Command Economy (A) Innovation

Answer 31

Innovative ways to improve a product and services

Question 32

Command Economy (A) Social Service

Answer 32

Government always put society first so they prioritize social services.

Question 33

Command Economy (A) Stability

Answer 33

A central decision can stabilize the economy

Question 34

Command Economic (D) Limited Choice

Answer 34

Government is the one who will decide about the production and the pieces that needs to be sell.

Question 35

Command Economy (D) Bureaucratic Inefficiency

Answer 35

Centralized decision will slow down to a problem in the economy

Question 36

Mixed Economy (A) Social Safety Net

Answer 36

It ensures a basic standard of living

Question 37

Mixed Economy (A) Regulations

Answer 37

Protect consumers, workers, and others

Question 38

Mixed Economy (A) Balance Approach

Answer 38

Combining market forces

Question 39

Mixed Economy (D) Political Influence

Answer 39

May lead to inconsistent policies

Question 40

Mixed Economy (D) Potential for Inefficiency

Answer 40

Downside of market and command economy

Question 41

Mixed Economy (D) Complexity

Answer 41

Combination can lead to complex system

Question 42

Market Economy (A)

Answer 42

Innovation Efficiency Individual Freedom

Question 43

Market Economy (D)

Answer 43

Inequality Market Failure Cyclical Instability

Question 44

Command Economy (A)

Answer 44

Stability Social Service Innovation

Question 45

Command Economy (D)

Answer 45

Lack of Incentives Limited Choices Bureaucratic Inefficiency

Question 46

Mixed Economy (A)

Answer 46

Balanced Approach Social Safety Nets Regulations

Question 47

Mixed Economy (D)

Answer 47

Complexity Political Influence Potential for Inefficiency

Question 48

is typically accompanied by higher prices, so consumers may be less willing to buy non essential or luxury items If wages do not rise at the same rate of _________, people lose money

Answer 48

Inflation

Question 49

The more people who are out of work, the less money that is circulated into the economy through the purchase of goods and services. Even the threat of __________ has an impact, as workers who fear losing their jobs are less inclined to spend or invest their money.

Answer 49

Unemployment

Question 50

is the value of its currency in the international market. In the United States, when the value of the S is high in relation to other countries currencies, the more goods and services we are able to import. In contrast, a higher value of the $ means that other nations may be less inclined to import products from the United States.

Answer 50

Foreign Exchange Rate

Question 51

The higher the demand for goods and services, the greater the need for workers to produce them, leading to economic growth

Answer 51

Supply and Demand

Question 52

People who have adjustable-rate home mortgages can face financial hardship or even lose their homes when __________ spike. Retirees who live largely off investment income may need to lower their standard of living when interest rates decline

Answer 52

Interest Rate