Economics Chapter 3 Assessment – Flashcards
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Utility
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A household's level of satisfaction, happiness, or sense of well-being.
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Antitrust Laws
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Laws that prohibit anticompetitive behavior and promote competition.
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Private Property Rights
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Legal claims that guarantee an owner the right to use a good or resource exclusively or to charge others for its use.
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Fiscal Policy
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The federal government's use of taxing and public spending to influence the macroeconomy.
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Monetary Policy
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The Federal Reserve System's attempts to control the money supply to influence the macroeconomy.
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Natural Monopoly
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One firm that can serve an entire market at a lower per-unit cost than two or more firms can.
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Private Goods
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A good with two features: (1) the amount consumed by one person is unavailable to others, and (2) nonpayers can be excluded easily.
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Public Good
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A good that, once produced, is available for all to consume, but the producer cannot easily exclude nonpayers from consuming it.
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Open-Access Goods
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A good that is rival in consumption but exclusion is costly.
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Positive Externalities
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By-products of consumption or production that benefit third parties.
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All those who live together under one roof are considered to be part of the same ____________.
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Household
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Films organizing production in large, centrally powered factories did all of the following except:
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Reduce Consumer Reliance on Trade.
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What equals Profit?
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Revenue - Cost of Production
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International trade occurs because the opportunity cost of producing specific goods differs among countries. True or False?
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True
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A __________________ awards an inventor the exclusive right to produce a good for a specific period of time.
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Patent
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A false statement about monopolies:
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Monopolies lead to welfare loss.
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Public goods can be used by all consumers and have no economic cost. True or False
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False
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Poverty is a relative term that has different meanings at different times and in different locations.
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True
