Q3 Flashcards – Economics
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in a socialist society, the government doesn't do which of the following?
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provides freedom of choice for producers
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which of the following best explains why the profit motive often leads to efficiency and innovation?
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the competition to make profit drives producers to eliminate waste
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which of the following results from the fact that a free-market systems based on the free choice consumers and producers?
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the free-market system has a circular flow of influences
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which of the following is the reason why, in a free-market society, the government passes laws against theft, coercion, and fraud?
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to guarantee security and growth
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match the following economic system which their definitions
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free market: an economic system where decisions are made by producers and consumers planned economy: an economic system run by the government mixed economy: economic system that used both free-market and command primciples
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which of the following economic systems leaves production decisions completely up to the producers?
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free-market economy
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which of the following is the main goal of a socialist system?
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to provide equality of wealth
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according to the circular flow model, which of the following is something consumers do that influences producers?
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produce goods and services
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which of the following is another term for free-market system?
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capitalism
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which of the following best explains why property rights are necessary in a free-market system?
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property rights allow consumers and producers to make free-choices
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which of the following best characterizes the factors involved in a cost-benefit analysis?
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they are both monetary and non-monetary consideration that must be taken into account
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which of the following best describes cost-benefit analysis?
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a process of maximizing benefits and minimizing costs
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which is one reason that people want to minimize costs?
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costs are often bad things that people don't want to accept
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which of the following would not increase GDP?
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more imports
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which of the following shows that an economy is stagnating?
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the GDP is neither growing nor shrinking
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the percentage of total workers who are out of work but seeking jobs and willing to work is the ____ rate
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unemployment
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which of the following economic indicators measures inactivity rather than activity?
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unemployment rate
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which of the following economic indicators would be most useful for figuring out how healthy a country's businesses are?
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corporate profits
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match the device with the improvement it brings
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power tool: faster construction cell phone: convenient communication industrial robot: reduction of human work-load
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which of the following best describes what technology does?
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improves results
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the cargo container improved distribution by introducing which of the following methods into the shipping industry?
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standardization
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which of the following is not a way that people can use the internet?
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as factory
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which of the following best shows how the internet affects the economic decisions people make?
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the availability of information people to consider more options
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the two forms of technology are better devices and improved ____.
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methods
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which of the following states the most direct benefit of greater productivity?
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goods and services are produced faster
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which of the following is not a benefit brought to the consumer by online sales?
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online businesses don't need many employees
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which of the following is the biggest and most direct effect of the internet?
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it drastically improved communication
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which of the following typically results from the introduction of the assembly line into the production process?
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efficiency is increased
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in economics, workers are both producers and which of the following?
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consumers
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in economics, businesses do all except which of the following?
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guide the economy
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in the game of economics, which players has the role of providing gods and services?
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producers
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which of the following do producers pay attention to in order to know what people want to buy and how much they're willing to pay?
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consumer's purchases
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producers use surveys and focus groups for which one of the following purposes?
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to conduct market research
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in economics, all goods and services to consumers are provided by which of the following?
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producers
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which of the following does not influence consumer's decisions
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the GDP
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which of the following best describes the incentive for producers to conduct market research?
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to desire to know what consumers want
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which of the following are sources of revenue for media companies?
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advertising and subscriptions
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which of the following tools helps a producer set up an efficient system of production?
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a production possibilities frontier graph
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which of the following is the main force behind the decisions made by producers in a free-market society?
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the profit motive
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which of the following statements best explains the purpose of advertising?
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advertising is about buying the attention of an audience of potential consumers
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which of he following best describes a situation where an oligopoly exists?
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a small number of producers command nearly the entire market for a certain good or service
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the media industry is dominated by which of the following?
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media conglomerates
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which of the following explains how revenue is determined?
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the total amount of money brought in by sales
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which of the following are market structures that can exist in a free-market system?
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oligopoly, monopolistic competition, pure competition
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innovation is a characteristic most strongly associated which of the following groups?
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entrepreneurs
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role of producers
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-make allocation and distribution decisions -pay for investments -decide what to produce -pay for labor
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role of consumers
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-decide what to consumer -provide factors of production -purchase goods and services
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which components calculate the GDP?
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-gross domestic product -growth rates -unemployment rate -inflation rate
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growth indicators
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-corporate profits -farm income -industrial production -new housing construction -personal income -retail
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two ways technology can advance
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-increasing distribution -increasing productivity
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four ways technology affects the game of economics
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-prices are down -increases productivity -improves distribution of goods -simplicity
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how workers play a dual role in economics
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-play part producer -serve the product produced -play part consumer -work to receive money to buy their own goods and needs
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what do producers consider?
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consider benefits and costs
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What do consumers consider?
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take account non-monetary things
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describe what the profit motive drives businesses to do
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-reduce costs whenever possible -increase sales whenever possible
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describe the inputs into production and explain why they cost money
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-wages for workers -rent for land or working space -money spent on raw materials
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monopoly
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-only one producer -one unique product with no close substitutes -producers controls price -blocked entry to competitors
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oligopoly
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-industry dominated by a small number of large businesses -businesses sell either identical or slightly differentiated products -give incentives of changing prices -significant barriers exist to enter industry
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what determines ad rates?
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-specific amount of ad space -if many people view a particular magazine, tv show, etc, most likely they'll see the ad
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sole partnership
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-owner operates business on his/her own -one owners has unlimited liability
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partnership
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-limited liability for limited partners -business with two or more owners
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corporation
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-stock-buying option -double taxation
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private corporation
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corporation whose shares are not publicly traded on any exchange
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public corporation
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corporation that trades shares of its stock on a public stock exchange
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nonprofit corporation
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corporation organized to benefit its members or a special cause, not to make profit
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shopkeeper
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-oldest and basic -owner get through suppliers or wholesale to buy products eventually re-sellers for a higher prices
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bait and hook
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-offering basic product at a very low cost -charges for greater amounts of refills or equipment related to product
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subscription
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-daily paper -doesn't rely on a series of one-time sales
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cutting out the middleman
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-direct marketing sales -reduces costas producing goods -cuts back on distribution process
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online auction
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-auctions online -faster and more convenient
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bricks and clicks
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-keeps customer loyalty -offers convenient and efficient online purchases -allows quicker deliveries through local stores -exposes company brand name with physical stores
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features of a business model
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-identifies potential customers -identifies goods and services to be offered -describes the organization of the business -describes how the business functions -explains how the business generate revenues and profits
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which of the following are ways that the internet affects how people make economic decisions
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-consumers can get more information about products they want to buy -e-commerce makes business more efficient -producers can communicate more easily -online shopping is more convenient for all consumers
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how has the internet improved communication?
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-can send emails without any communication unless desired otherwise -more information can be placed
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what roles does the internet play in the world?
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-better communication -better decisions
