Quiz 1-3 Study Guide

Question 1

The study of how people seek to satisfy their needs and wants by making choices

Answer 1

Economics

Question 2

Air, food, water, shelter

Answer 2

Need

Question 3

Something we desire

Answer 3

Want

Question 4

Actions or activities

Answer 4

Services

Question 5

Physical objects

Answer 5

Goods

Question 6

Knowledge and skills a worker gains through education and experience

Answer 6

Human capital

Question 7

Effort that a person devotes to a task for pay

Answer 7

Labor

Question 8

Producers will not or cannot offer goods or services at the current price

Answer 8

Shortage

Question 9

Limited quantities of resources that is used to produce other goods and services

Answer 9

Scarcity

Question 10

Human-made resource that is used to produce other goods and services

Answer 10

Physical capital

Question 11

Land, labor, and capital

Answer 11

Factors of production

Question 12

Human-made objects used to create other goods and services

Answer 12

Capital

Question 13

Ambitious leaders who decide how to combine land, labor, and capital resources to create new goods and services

Answer 13

Entrepreneurs

Question 14

Which of the following is not considered a need according to your book ?

Answer 14

A nice car

Question 15

Which if the following is a want according to your book ?

Answer 15

A nice car

Question 16

Which of the following is not considered a country’s resources ?

Answer 16

Air

Question 17

Cost always refers to money

Answer 17

False

Question 18

Economics may operate ineffectively

Answer 18

True

Question 19

A production possibilities curve shows alternative ways to use an economy’s productive resources

Answer 19

True

Question 20

Thinking of the margin is only about thinking about how much more you can do

Answer 20

False

Question 21

In your own words, define economics

Answer 21

How people satisfy their needs and the wants by making a different choice

Question 22

In your own words, define wants and needs

Answer 22

Needs- the things for survival

Wants- other things not needed for survival

Question 23

In your own words, describe trade-offs

Answer 23

Something we sacrifice when we make a decision

Question 24

If there is a large supply and low demand, prices would typically

Answer 24

Fall

Question 25

If there is a short supply and a high demand, prices would typically

Answer 25

Rise

Question 26

A shortage is always permanent

Answer 26

No

Question 27

Economics is the study of

Answer 27

Scarcity

Question 28

Scarcity means something is temporarily unavailable

Answer 28

No

Question 29

If IBM issues a bond and you buy their bonds, you own part of the company

Answer 29

No

Question 30

If you buy IBM stock, you own part of the company

Answer 30

Yes

Question 31

If you start saving for retirement now, you have a better chance of hitting your retirement goals then if you waited to save until you were 40

Answer 31

Yes

Question 32

A bill from your doctor

Answer 32

Expenses

Question 33

Your car

Answer 33

Assets

Question 34

Car loan

Answer 34

Liabilities

Question 35

Your paycheck

Answer 35

Income

Question 36

A social and political philosophy based on the belief that democratic means should be used to distribute wealth evenly throughout a society is called

Answer 36

Socialism

Question 37

Economic systems that are based on voluntary exchanges in markets are called __________ __________ Economics

Answer 37

Free market

Question 38

What is the most common reason someone starts their own business ?

Answer 38

To be your own boss

Question 39

America is considered a Land of ____________ because of our Free Enterprise

Answer 39

Opportunity

Question 40

If you have a successful business, can the government of the U.S. take over control to run it for themselves without due process ?

Answer 40

No

Question 41

The study of the behavior and decision making of entire Economics

Answer 41

Macroeconomics

Question 42

The study of the behavior and decision making small units such as small units, such as individuals, families, and business

Answer 42

Microeconomics

Question 43

What does GDP stand for ?

Answer 43

Gross Domestic Product

Question 44

The study of economics begins with the idea that people cannot have everything they _________ and ________

Answer 44

Need | Want

Question 45

A ________ is something like air, food, shelter

Answer 45

Need

Question 46

A _______ is just about everything else

Answer 46

Want

Question 47

We discussed two types of capitals. __________ and ________

Answer 47

Physical | Human

Question 48

Human-made objects used to create other goods and services are called _________ capital

Answer 48

Physical

Question 49

____________ capital is the knowledge and skills a worker gains education and experience

Answer 49

Human

Question 50

As discussed in class, nobody can take away your ________ and ________

Answer 50

Education and experience

Question 51

Ambitious leaders who decided how to combine land, labor, and capital resources to create new goods and services are called

Answer 51

Entrepreneurs

Question 52

___________-________ are all the alternatives when we give up whenever we choose one course of action over another

Answer 52

Trade-off

Question 53

The most desirable alternative given up as the result of a decision is called the _______ cost

Answer 53

Opportunity

Question 54

For most decisions we make there are prone and cons. In economic terms we should do a _________ / _________ analysis

Answer 54

Cost/benefit

Question 55

Coasts are always financial

Answer 55

False

Question 56

Which of the following usually gives the most protection to a individual

Answer 56

Incorporation

Question 57

LLC stands for __________ ____________ ___________

Answer 57

Limited liabilities corporation

Question 58

Does an LLC typically issue stock and bonds ?

Answer 58

No

Question 59

All natural resources used to produce goods and services

Answer 59

Land