Test 1

Question 1

Economic system in which the means of production are privately owned and operated for profit

Answer 1

Capitalism

Question 2

Government decided what, how, and when answering the three economic questions

Answer 2

Command Economy

Question 3

Business are privately owned and the government may make laws to protect workers

Answer 3

Mixed economy

Question 4

Based on common produce farming, hunting,gathering, and food

Answer 4

Traditional Economy

Question 5

A system where ordinary people have a voice in their work places, neighborhood, and society

Answer 5

Democratic socialism

Question 6

Found on or in earth
Present without human intervention

Answer 6

Land/natural resources

Question 7

Effort from humans during production
Anyone who works to produce goods and services

Answer 7

Labor/Human Resources

Question 8

Manufactured materials used to create products

Answer 8

Capital

Question 9

Person who starts a new business
Introduces new products and or process
Takes risks and is innovative

Answer 9

Entrepreneurship

Question 10

We have unlimited wants but limited resources

Answer 10

Scarcity

Question 11

Anything the people use to make what they want or need

Answer 11

Resources

Question 12

Solar energy, wind energy, biomass energy etc

Answer 12

Renewable resources

Question 13

Write the wealth of nations
Father of economics
Encouraged capitalism

Answer 13

Adam Smith

Question 14

Write essay on the principal of population
Overpopulation/starvation worries
People should have fewer children

Answer 14

Thomas Malthus

Question 15

Study of the large economy as a whole or economic aggregates
Government, inflation, unemployment

Answer 15

Macroeconomics

Question 16

Study of small economic units such as individual firms and markets
Supply and demand, production costs, labor costs

Answer 16

Microeconomics

Question 17

Most desirable alternative given up when you make a choice

Answer 17

Opportunity cost

Question 18

Looks at what’s gained by choosing one option over another

Answer 18

Opportunity benefit

Question 19

Satisfiaction

Answer 19

Utility

Question 20

The total amount of money a company generates from its business activities before deducting expenses

Answer 20

Total revenue

Question 21

Roles of an entrepreneur

Answer 21

Take the initiative
Provide value to others

Question 22

Functions of profit

Answer 22

Motivations business, guiding resource allocation, encouraging innovation, and ensuring economic growth

Question 23

What are two assumptions made when drawing a production possibilities curve?

Answer 23

Resources are used to produce one or both of only two goods
Resources are used in a technically efficient way

Question 24

Not obtainable

Answer 24

Point outside the curve

Question 25

Obtainable but doesn’t use resources at its fullest potential

Answer 25

Point in the curve

Question 26

6 goals of the American economy

Answer 26

Economic growth, economic efficiency, economic security, economic equity, full employment, stability

Question 27

Different types of socialism

Answer 27

Communism (pure planed economy), capitalism (pure free market)

Question 28

Economic spectrum

Answer 28

Communism Mixed economy Capitalism

Question 29

Mathematical equation for profit

Answer 29

Profit % = profit/cost price x100

Question 30

What How Who

Answer 30

What goods and services should be produced? How should these goods and services be produced? Who consumes these goods and services?