Question 1

exists whenever buyers and sellers exchange goods and services

Accepted Answer

A market _____.

Question 2

trading money for a car

Accepted Answer

Select the items that describe voluntary exchanges.

Question 3

gain

Accepted Answer

Ben wants to sell his used couch to Pam. Ben and Pam will trade the couch for money, if both individuals expect to _____.

Question 4

price

Accepted Answer

The interaction between buyers and sellers in the marketplace leads to goods and services being distributed by _____.

Question 5

more ; less

Accepted Answer

When people buy something, they value ------ it than it costs them. But, when people sell something, they value it -------- than the payment they receive.

Question 6

Two Wheel Bicycle manufactures more bicycles.  Employees get a raise.  Two Wheel Bicycle increases its advertising budget.  The owner opens another Two Wheel Bicycle store.

Accepted Answer

Two Wheel Bicycle Company increased its market share from 10 percent to 25 percent during one year. Select statements that could be true as a result of this increase.

Question 7

satisfy economic wants

Accepted Answer

A consumer uses goods and services to _____.

Question 8

Who will consume the goods and services?  What goods and services will be produced?  How will the goods and services be produced?

Accepted Answer

Select the economic questions that involve the consumer.

Question 9

choosing which goods and services to buy

Accepted Answer

Consumers influence how goods and services are made by _____.

Question 10

buying organic products and non-GMO foods  purchasing products made from recycled materials  consuming food made in a fair trade way

Accepted Answer

Select the items that support the statement: Consumer preferences affect how producers make goods.

Question 11

impulse

Accepted Answer

Gum and candy are often for sale right next to cash registers. This buying situation encourages consumers to use their money to make ---- purchases.

Question 12

can invent new products  can start new businesses  takes on risks  can create jobs

Accepted Answer

Select all the items that describe an entrepreneur.

Question 13

earn profits

Accepted Answer

Entrepreneurs and other sellers ---- when buyers purchase the product they sell at prices more than high enough to cover the costs of production.

Question 14

incentives

Accepted Answer

Both the satisfaction of creating new products and the possibility of earning money are _____ for an entrepreneur.

Question 15

$2.00

Accepted Answer

You are running a business, and each good that you produce costs $1.50. In order to earn a profit, you could choose a price of _____ for your product.

Question 16

A small business owner may be an entrepreneur and a producer.  Entrepreneurs believe they can make a profit from their invention.  Entrepreneurs usually work longer hours than most people.

Accepted Answer

Select the true statement(s) about entrepreneurs.

Question 17

earns wages or salaries  a human resource and factor of production  used to produce goods and services  includes teachers, pilots, and doctors

Accepted Answer

Select the items that describe labor.

Question 18

high wages  good benefit package  safe work environment

Accepted Answer

Select the items that describe incentives for an employee to accept a job offer.

Question 19

education

Accepted Answer

Factors that improve human capital and can increase labor productivity include choosing a career, training, and _____.

Question 20

wages ; salaries

Accepted Answer

Employers are willing to pay ----- and ---- to workers, because they expect to be able to sell the goods and services at prices high enough to cover the costs of production.

Question 21

more ; less

Accepted Answer

productive workers are likely to be of greater value and earn higher wages than productive workers.

Question 22

intangible assets  copyrights  trademarks  patents

Accepted Answer

Select the items granted by the government to provide intellectual property rights.

Question 23

copyright

Accepted Answer

A movie writer can ---- his movie script in order to benefit financially from his creation.

Question 24

enforces

Accepted Answer

The government defines, establishes, and ---- property rights.

Question 25

incentives

Accepted Answer

By establishing property rights, governments provide ----- for people to create new goods and services.

Question 26

more innovations  more economic growth  more job opportunities  more sales to other countries

Accepted Answer

Select the items that describe potential benefits of providing intellectual property rights.

Question 27

store of value

Accepted Answer

When money is deposited in the bank for later use, it is a _____.

Question 28

medium of exchange

Accepted Answer

When you use paper money to pay for food, the money is a _____.

Question 29

unit of account

Accepted Answer

When you compare the prices of two different pairs of shoes, money is a _____.

Question 30

easy to carry  valuable  easily divisible

Accepted Answer

Select the items that describe the benefits of coins and paper money.

Question 31

euros

Accepted Answer

Select a form of money not used in the United States.

Question 32

bartering

Accepted Answer

Money makes trading easier by replacing ------ with transactions involving paper money, coins, and checks.

Question 33

natural resources  human resources  capital goods

Accepted Answer

Select all the items that producers use to make goods and services.

Question 34

goods ; services

Accepted Answer

Select the items that people consume to satisfy their economic wants.

Question 35

Bartering encourages specialization.

Accepted Answer

Select the statement that is not true about bartering.

Question 36

exchange costs

Accepted Answer

Money encourages specialization by decreasing the .

Question 37

small firms  corporations

Accepted Answer

Select the producers that have earning profits as a main goal.

Question 38

the benefits of the people who work for these businesses

Accepted Answer

Sally works for a big corporation because she wants to earn a high salary. Fred works for a not-for-profit organization because he wants to help people in medical need. This illustrates that the goals of different organizations affect _____.

Question 39

capital

Accepted Answer

Corporations have more ways to raise ---- to pay for productive resources than small firms or not-for-profit organizations.

Question 40

small firms  not-for-profit organizations

Accepted Answer

Select the organizations that use grants as a means to raise money.

Question 41

corporation

Accepted Answer

If an empty building costs nearly a million dollars to purchase, which organization would likely be the most able to purchase it?

Question 42

interest

Accepted Answer

The cost of borrowing money is called _____.

Question 43

False

Accepted Answer

Simple interest is calculated as a percentage of the bank balance and interest already earned.

Question 44

higher interest rate  higher balance

Accepted Answer

Select the items that can result in higher interest earned.

Question 45

bonds  bank accounts

Accepted Answer

Select the items that are considered low risk investments.

Question 46

highest

Accepted Answer

Individuals and companies respond to incentives in order to allocate their scarce resources in ways that provide the possible ------ returns to them.

Question 47

roads  education  military  police force

Accepted Answer

Select all the items that are public goods or services.

Question 48

taxes and borrowing

Accepted Answer

The two main sources of government revenue are

Question 49

amount overspent in a certain time

Accepted Answer

A budget deficit is the _____.

Question 50

government

Accepted Answer

What person or organization will usually supply goods and services when it appears that the benefits to society outweigh the costs to society?

Question 51

favor programs with immediate benefits  implement policies that favor a small, powerful group  provide policies whose costs outweigh the benefits

Accepted Answer

Select the items that describe possible effects of incentives for political leaders.

Question 52

the United States

Accepted Answer

The Federal Reserve is the central bank of _____.

Question 53

increase personal and sales taxes  manage risk in the financial markets  watch banks and protect customers  provide banking services  influence the money supply

Accepted Answer

Select the items that are jobs of the Federal Reserve

Question 54

monetary policy

Accepted Answer

When the Federal Reserve influences the growth of the money supply, it is carrying out

Question 55

money supply

Accepted Answer

Open-market operations are when the Federal Reserve buys and sells securities to influence the _____.

Question 56

enforcing the Truth in Lending Act

Accepted Answer

The Federal Reserve helps protect people who borrow money to pay an expense by _____.

Question 57

consumer  producer  entrepreneur  labor

Accepted Answer

Select all the items that describe a kind of market participant.

Question 58

are voluntary exchanges

Accepted Answer

Both trading and bartering _____.

Question 59

store of value  unit of account  medium of exchange

Accepted Answer

Select all the items that describe the jobs of money.

Question 60

costs and benefits  incentives and disincentives  constraints and rules

Accepted Answer

Select all the items that describe factors that market participants face as part of the decision process.

Question 61

decrease tax levels

Accepted Answer

To help the economy grow, the federal government can _____.

Economics – Unit 2: Economic Roles

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