Economics Final- Jeopardy Questions – Flashcards
48 test answers
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What are the three basic questions every economic system has to decide?
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What to make. Who should make it. How to make it.
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What type of economic system does the United States have?
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mixed
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What is the most common type of business in the United States?
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sole-proprietorship
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According to the Law of Demand, as price goes up the demand...?
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demand goes down
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What does it mean when the demand is elastic?
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a small change in price causes a big change in demand
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Define a market.
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interaction between buyers and sellers
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Define a trade-off.
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choosing one thing over another
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What is a term for a trade that isn't forced but everyone benefits from?
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voluntary exchange
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What is the difference between a want and a need?
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needs are necessary for life
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What are the three types of businesses?
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sole-proprietorship, partnership, corporation
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What is the basic problem that creates the need to make choices?
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scarcity
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What are the three ideal types of economies?
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traditional, command, market
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What are the factors of production?
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land, labor, capital, entrepreneurship
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What is a capital resource?
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man-made tools to produce other goods
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What is the most common type of market?
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nonpolistic competition
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Define opportunity cost.
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what is lost when you choose one thing over another; value of the next best alternative
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What are the two types of costs that add up to the total cost?
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fixed and variable
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Define the marginal cost of production
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cost to make one more
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What is the economic concept that determines why companies complete?
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scarcity
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How do consumers benefit from the competition between businesses?
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keep prices low
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What is the most responsible way to use a credit card?
answer
make purchases that you can pay in full at the end of the month
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What is the term for the government spending more than its budget?
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deficit spending
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What is discouraging for entrepreneurs in a command economy?
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lack of profit motive
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What type of money are corn, tobacco, and tea?
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commodity
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How large is the national debt?
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over $16 trillion
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What helps MAKE the U.S. dollar weak?
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trade deficit (more imports than exports/too much supply of US dollars in foreign places)
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Moneyless societies use what method of exchange?
answer
barter
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Why does saving money in the bank benefit the economy?
answer
more loans
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What is an entrepreneur?
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risk taker who starts a new company
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How do entrepreneurs help the economy?
answer
earn money for themselves, create jobs for others, create products, and pay taxes
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What characteristic is used to describe entrepreneurs?
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risk taker
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Which economic system rewards entrepreneurs the most?
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market
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Who is the current chairman of the Fed?
answer
Ben Bernanke
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Which industry does a weak U.S. dollar help?
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exports
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What was the main source of government revenue before the Civil War?
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tariffs
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What is the main source of money for the government?
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income tax
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Who is responsible for National Defense?
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the National Government
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Who owns the Fed?
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member banks
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If the U.S. dollar is strong, is it worth more or less?
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more
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What makes international trade so complicated?
answer
foreign exchange rate
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Why are countries able to trade profitable with one another?
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specialization
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What is the job of the Fed?
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controls money supply
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Why is fiat money preferable to commodity money?
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more durable
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What tools does the Fed have to control the money supply?
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discount rate, open market operations, reserve requirements
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