econ Unit 2 test
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bartering
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Exchanging desserts between you and your friend is an example of _____.
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markets
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Trading stocks, buying and selling currency, and purchasing a new computer from the store are all examples of _____
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gives up
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Fern agrees to sell her guitar for $30 because she expects to gain more than she _____ from this sale.
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Who will consume the goods and services? How will the goods and services be produced? What goods and services will be produced?
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Select the three economic questions that each economy has to answe
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Lisa demanded the new pair of shoes.
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Lisa bought a new pair of shoes for $50. Choose the statement that best describes this situation.
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entrepreneur
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A person, such as the owner of a pharmacy, who organizes other productive resources to make goods and services is called a(n) _____.
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earn profits
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Entrepreneurs and other sellers when consumers buy products at prices high enough to cover their production costs.
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high wages
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An incentive to accept a new job is _____.
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choosing a career training education
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Select the factors that improve human capital.
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Revenue left over after expenses are paid 1 Rules that control the behavior of others 4 Amount of output that comes from a unit of input 3 Something that people put their money into, because they hope to make more money in the future 5 Chance that things will turn out differently than expected 2
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1. Profit Chance that things will turn out differently than expected 2 2. Risk 3. Productivity 4. Regulation 5. Investment
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Antitrust laws
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_____ are rules that prevent the creation and behavior of monopolies.
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incentives
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Liability rules, property rights, contract enforcement, and standards for weights and measures affect the for people to produce and exchange goods and services.
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patents copyrights trademarks protection of trade secrets
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Select the items that describe the ways that the U.S. government protects intellectual property rights.
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True
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Protecting intellectual property rights can result in new inventions that help the economy to grow.
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store of value unit of account medium of exchange
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Select the items that describe the jobs of money.
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exchange rate
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The amount of one currency that can be traded for a unit of another currency is called the _____.
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easier
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Money makes trading by replacing bartering with transactions that involve paper money, coins, or checks.
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False
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Consumers consume money to satisfy their economic wants.
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Financial institution whose funds come mainly from deposits 5 Permission granted to other people to sell a business's goods or services 3 Monetary aid given by another organization (such as the government or corporation) 4 Money used for investment 2 Decreasing the average cost of each good as output increases 1
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Depository Institution Grant Franchise Financial Capital Economies of Scale
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health
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Not-for-profit organizations are established mainly for religious, civic, educational, or purposes.
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loans, investors
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Adina deposits $1,000 in the bank. The bank can then use her savings to make _____ to/for _____.
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increases
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When banks make loans, the money supply
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government
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Fiscal policy, or changes in tax levels and spending, is carried out by the
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spending
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If the government wants to help the economy to grow, it can increase , but this can also increase the budget debt.
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includes roads, education, and the police force provided by the government in market economies can provide benefits to many people at the same time
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Select the items that describe a public good.
