Econ Finail – Flashcards
Unlock all answers in this set
Unlock answersquestion
in a free market economy the factor market involes the following type of what exchange
answer
Firms purchases factors of production from households
question
if a family purchases a dishwasher so that family member can save time for the more
answer
This producation factor is called physical capital
question
the difference between a scarcity and a shortage
answer
a scarcity occurs when there is limited quantities to meet unlimted wants. a shortage occurs when a good or service in unavailable
question
A traditional economy relies on habit custom or ritual to decide
answer
what to produce, how to produce it, and to whom to distribute it
question
if ben has the money to buy either a bike or a badeball gloce and he buys the bike
answer
the baseball glove is his opportunity cost
question
what anwsers the three questions about the producation of goods and services by the importance it attches to various economic goals and societal values
answer
A Society
question
a public disclosure law helps the public by requiring
answer
companies to give consumers important information about their products
question
what is the force driving the fee market is competition
answer
the regulating force
question
what are three legtitmate reasons for the ggoverment to provide a good or service as a public good
answer
A)the good or service should made available to everyone B)increasing the number of consumers would increase would increase the cost to a private provider C)it would be impratical to make consumers pay individually
question
what can work effectively toward explicitly stated goods, but ine disadanttage to this kind is that its profmance almost always falls short of its ideals
answer
centrally planned econmies
question
improvments in what allow an economy to produce more output from the same or a smaller amount of inputs
answer
technology
question
what is the purpose of the free enterprise system
answer
is to give consumers freedom to make econmoic choices
question
what are some basic principles of free enterprise
answer
profit motive, legal equality, private property rights, free contract, and competition
question
what are factors that affect elasticity
answer
A) availability of substitutes B) the goods relative importance C) whether the good is a necessity or luxury
question
where does the category that subsidies, excise taxes, and regulation belong
answer
belong to is goverment's influence on supply
question
what does when the price of goods goes up people get less for their money and consumption goes down. explian
answer
this explians the realtionship between effect and consumption
question
dolores is bjuying fewer boxes of top ramen, clunker care fast food meals and heneric products became her income has rasin. nor she is eating high on the hog. she has a new beemer and only diner at the finest restaurant. the term "high maintenance" can be applied to her.
answer
this shift in the demand curve caused by dolores income hasreilted in a decreased demand for inderior goods
question
according to the laws of supply
answer
the higher the price the larger the quantity produced
question
the following government action is an attempt to control the high cost of rent for low income families:
answer
price ceilings the reult of this action has been that few renters with the greastest need benefit from the program.
question
factors that make it difficult for new firms to enter a market are called
answer
barriers to entry
question
what is ecomnomics?
answer
it is the study of how people seek to satisfy their needs and wants by making chocies
question
without _________ there is no reason of economics
answer
scarcity
question
what system was used during World War II that was used to help ease shortages, andguarantee every american a minimum standard of living
answer
rationing, not a price based system,
question
what is an oligopoly
answer
is a market strucutre in which a few large firms dominate the market. Automobile manufacturers are examples of this
question
The differnence between a general partnership and a limited liability partnership (LLP)
answer
is that in a LLP all partners are limited from personal liability in certain situations
question
Zoning laws
answer
may keep sole proprietorshipd from operating out of their homes
question
An industry that ejoys economics of scale can easily become a natural monopoly
answer
because average costs drop as producatin rises
question
The business organization that you should participate
answer
in if you can only afford to lose the amount of your original investment is a limited partnership
question
If a firm sells natural gas to a city for one price and sells the same gas to a small village for another price this is called
answer
price discrimination
question
Master Jun FAn took out a loan to buy martial arts equipment for his in home martial arts studio. if Master Fan's business does not make enough money to pay back his loan he will have to sell property to cover his outstanding obligation Being a sole proprietor he is affected bu unlimted perosnal liability which does not affect other business organizations
answer
As a sole proprietor
question
Franchises have become popular in recent years
answer
became small franchise owners enjoy a degree of control and can benefit from the support o the partent company
question
face limited liability for the firm's debts in a corporation
answer
individual stockholders
question
consideration that keeps many firms from incorporating is that stockholders must pay personal income tax on dividends
answer
An important peronal financial
question
when the Santa Fe and Burlington Northern Railroad merged to form a
answer
single corporation this was called a horizontal merger
