Unit 6/7 Economics

Question 1

What is Economics?

Answer 1

The study of how people use limited resources to make choices in the marketplace.

Question 2

What is scarcity?

Answer 2

Lack or resources,goods,and services

Question 3

What is choice?

Answer 3

Selecting an item from a set of alternatives.

Question 4

What is the market place?

Answer 4

Any place where goods and services are bought and sold.

Question 5

What is opportunity cost?

Answer 5

What is given up when a choice is made.

Question 6

What are natural resources?

Answer 6

Items find in nature

Question 7

What are human resources

Answer 7

Individuals who provide the labor

Question 8

What are capital resources?

Answer 8

Things owned by the business

Question 9

What are entrepreneurship resources?

Answer 9

The people who take the risk to start a business.

Question 10

What is production?

Answer 10

Creating a good or service

Question 11

What is consumption?

Answer 11

When consumers purchase and use a good or service.

Question 12

In a traditional economy what are decisions based on?

Answer 12

Custom and Tradition

Question 13

In a free market economy who makes decisions?

Answer 13

Individual, consumer, and business

Question 14

In a free market (economy) businesses make decisions based on what.

Answer 14

Profit (money)

Question 15

In a free market what reduces prices and makes better quality products?

Answer 15

Competition

Question 16

In a free market what determines what is produced?

Answer 16

Consumer Sovereignty (what people want)

Question 17

In a Command economy who makes all economic decisions?

Answer 17

The Government

Question 18

In a mixed economy what are the two decision making sectors?

Answer 18

Private (consumers and businesses) and Public safety (Government)

Question 19

Give an example of Government intervention in a mixed economy

Answer 19

1. Minimum Wage
2. Safe working conditions

Question 20

What is Private Property?

Answer 20

Businesses and individuals can own their own buildings and land.

Question 21

What is Supply?

Answer 21

Amount of Goods/Services that a business is willing and able to sell.

Question 22

What is Demand?

Answer 22

The amount of goods/services that consumers are willing to buy

Question 23

What is equilibrium price?

Answer 23

The price where Supply and Demand intersect.

Question 24

What is a proprietorship?

Answer 24

A business with one owner taking all the risk and keeping all the profit?

Question 25

What is a Partnership

Answer 25

A business with two or more owners taking all the risk and sharing the profits.

Question 26

What is a Corporation?

Answer 26

A business that acts like a legal person. Owners share the profits, limit the risks.

Question 27

What is circular flow?

Answer 27

Goods/Services flow in one direction and money flows in the opposite direction

Question 28

In a circular flow what are households?

Answer 28

Consumers

Question 29

In circular flow what resources do households have?

Answer 29

MONEY, land , and labor

Question 30

In circular flow what do business use resources from households for?

Answer 30

To produce goods and services

Question 31

How does government get money to provide goods/services?

Answer 31

Taxes

Question 32

Who supplies coins and currency to make purchasing easier?

Answer 32

Government

Question 33

Where do consumers and business get money to spend or expand?

Answer 33

The BANK

Question 34

What are four ways government gets money?

Answer 34

Taxes, fines, fees, borrowed funds.

Question 35

What is the federal government main tax?

Answer 35

Federal income Tax

Question 36

What are STATE governments main taxes?

Answer 36

State income Tax and Sales Tax

Question 37

What are LOCAL governments main tax?

Answer 37

Property Tax( House, Land, Vehcile?)

Question 38

What dies the consumer safety product (CSPC) do?

Answer 38

Test to make sure products are safe to buy.

Question 39

Whats does the food and drug administration (FDA) do?

Answer 39

Make sure food and drugs are safe

Question 40

What government agency defines safety procedures for the workplace?

Answer 40

Occupational Safety and Health Administration (OSHA)

Question 41

What government agency protects hiring practices from discrimination?

Answer 41

Equal Opportunity Employment Commission (EOEC)

Question 42

What is a monopoly?

Answer 42

On e business the production and distribution of one product

Question 43

What is antitrust legislation?

Answer 43

Are laws that discourage monopolies

Question 44

Why is international trade beneficial to the US Economy?

Answer 44

1. Increase Wealth 2. Obtain goods 3. Lower our cost 4. Sell to other countries 5. Creates Jobs

Question 45

What is the benefit of advances in technology to the economy?

Answer 45

Lower the cost of production.

Question 46

What does the Federal Communications Commission do?

Answer 46

Regulate t.v, radio, etc.. communications

Question 47

What does the Security Exchange Commission do?

Answer 47

Protect investors

Question 48

What does the Federal Trade Commission do:?

Answer 48

Protect consumers from false advertising

Question 49

What is the Federal Reserve System (The Fed) do?

Answer 49

Regulate banks. Influence the money supply, and raise or lower interest rates to keep inflation (value of money) low.

Question 50

What agency protects the environment?

Answer 50

Environmental Protection Agency (EPA)