Goods And Services Market Flashcards, test questions and answers
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We've found 11 Goods And Services Market tests
Economics
Goods And Services
Goods And Services Market
Microeconomics Is Concerned With
Principles Of Economics: Macroeconomics
Econ Quiz 1 Test – Flashcards 9 terms
9 terms
Preview
Econ Quiz 1 Test – Flashcards
question
The basic difference between macroeconomics and microeconomics is that:
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microeconomics is concerned with the trees (individual markets) while macroeconomics is concerned with the forest (aggregate markets).
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As depicted in _________________________________, it is necessary to give up some of one good to gain more of the other good.
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the production possibilities frontier
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Attending college is a case where the ________________ exceeds the monetary cost.
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opportunity cost
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Gomer decides to spend an hour playing basketball rather than studying. His opportunity cost is:
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the benefit to his grades from studying for an hour
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Scarcity implies that:
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it is impossible to completely fulfill the unlimited human desire for goods and services with the limited resources available.
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The general pattern that consumption of the first few units of any good tends to bring a higher level of _______ to a person than consumption of later units is a common pattern.
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utility
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The choice on a production possibilities set that is socially preferred, or the choice on an individual's budget constraint that is personally preferred, will display
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allocative efficiency
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Referring to Table 2-1 below: A student has only a few hours to prepare for two different exams this afternoon. The below table shows alternative possible exam scores with three alternative uses of the student's time. The opportunity cost of scoring a 94 on the economics exam rather than a 77 is:
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15 points on the history exam.
question
Which of the following best describes a fiscal policy tool?
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government spending
AP Macroeconomics
Goods And Services Market
Macroeconomics
Principles Of Economics: Macroeconomics
Adam History – Flashcards 34 terms
34 terms
Preview
Adam History – Flashcards
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A period of recession and inflation
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stagflation
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to officially forgive
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pardon
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took power in Iran in 1979
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Ayatollah Khomeini
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cast himself as a fresh face to win the Presidency
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Jimmy Carter
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succeeded Nixon aas President
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Gerald Ford
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established procedures for presidential succession
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Twenty-fifth Amendment
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scandal that caused Nixon's resignation
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Watergate
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Which of the following reflects Nixon's negative attitude toward "big" government
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his proposal for revenue sharing with the states
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Nixon's southern strategy involved
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criticizing court-ordered busing of school children
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Nixon believed that executive privilege
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justified his refusal to turn over his taped conversations
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Why do you think Ford made this speech immediately after gaining the presidency?
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Nixon's scandal shook the public's trust in government
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Richard NIxon believed that
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Americans had tired of the "big government" of Johnson's great Society
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Which group did Nixon target during his presidency to expand his base of support?
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Northern whites
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In the case of United States v Nixon, the Supreme Court ruled that
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Nixon had to resign the presidency immediately and go to prison
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What was a result of Nixon's resignation?
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Many Americans lost trust in government officials
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Which statement is try about Jimmy Carter?
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He had a reputation for hard work and integrity
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Which critical event affected both the Ford & Carter presidencies?
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the energy crisis
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During his presidency, Gerald Ford...
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faced high inflation, skyrocketing prices, and rising unemployment
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What happened in the 1974 congressional election?
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The public showed their disapproval of Nixon's pardon
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Jimmy Carter's response to the nation's oil crisis was to
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call on Americans across the country to conserve oil
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During the 1970's- why did the population of the US change?
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Many immigrants arrived from latin America & Asia
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Religious conservatives in the 1970's
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began to form alliances with other conservatives
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President Ford's policy toward the Soviet Union focused on
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continuing to pursue detente
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President Carter's response to the SovietUnion's invasion of Afghanistan in 1979 was to
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impose sanctions on the Soviet Union
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What country's dictator did Carter withdraw US support for during a leftist rebellion?
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Nicaragua
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Carter's greatest foreign policy achievement was the
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signing of the Camp David Accords
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What was an important consequence of the Iran hostage crisis?
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Threats posed by Middle East conflicts became a major foreign policy challenge
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According to the graph, when was Richard Nixon's Highest approval rating?
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November 1972 May 1973 November 1973 May 1974
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When Gerald Ford left the office of President..
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the nation's economy had worsened -during his presidency
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Early in his presidency, many of the bills that carter submitted to Congress
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passed only with his own party's major changes
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What is one way in which American society changed during 1970"s?
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the nation's divorce rate increased significantly.
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Relations between the US and Soviet Union cooled during the late 1970's because of the
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Soviet invasion of Afghanistan
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What did Egypt agree to do in order to achieve peace with Israel?
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formally recognize the nation of Israel
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Essay: ~How did changes in American society during the 1970'2 affect religion in the nation? ~How did this change in religion affect politics?
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...
Goods And Services Market
Individuals And Societies
New Business Opportunities
Principles Of Economics: Macroeconomics
Problems And Issues
Macroeconomics Answers – Flashcards 71 terms
71 terms
Preview
Macroeconomics Answers – Flashcards
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Good
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Anything from which individuals receive utility or satisfaction
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Utility
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The satisfaction one receives from a good
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Bad
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Anything from which individuals receive disutility or dissatisfaction
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Disutility
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The dissatisfaction one receives from a bad
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Example of disutility
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Poor person getting ticket vs rich person getting same ticket
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Good can be tangible or intangible
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same object can have different satisfication
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partial list of some goods:
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a computer, a car, a watch, a television set, friendship, and love.
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for something to be a good (whether tangible or intangible),
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it only has to give someone utility or satisfaction.
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It takes ________ to produce goods
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resources
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Sometimes resources are referred to as
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inputs or factors of production
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economists divide resources into four broad categories:
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land, labor, capital, and entrepreneurship
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Define land
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All natural resources, such as minerals, forests, water, and unimproved land. For example, oil, wood, and animals fall into this category.
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Define labor
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The physical and mental talents that people contribute to the production process. For example, a person building a house is using his or her own labor.
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Define capital
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Produced goods that can be used as inputs for further production. Factories, machinery, tools, computers, and buildings are examples of capital. One country might have more capital than another; that is, it has more factories, machinery, tools, and the like.
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Examples capital
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Factories, machinery, tools, computers, and buildings are examples of capital. One country might have more capital than another; that is, it has more factories, machinery, tools, and the like.
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Define entrepreneurship
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The talent that some people have for organizing the resources of land, labor, and capital to produce goods. Seeking new business opportunities. Develop new ways of doing things.
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Scarcity is
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the condition in which our wants (for goods) are greater than the limited resources (land, labor, capital, and entrepreneurship) available to satisfy those wants.
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Other words for scarcity
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we want goods, but not enough resources are available to provide us with all the goods we want.
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Our wants (for goods) are ______, but our resources (which we need to produce the goods) are _____.
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are infinite; are finite
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Scarcity is the result of
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our infinite wants hitting up against finite resources.
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Economics
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the science of how individuals and societies deal with the fact that wants are greater than the limited resources available to satisfy those wants.
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Economics is the s_____________
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science of scarcity
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scarcity is the condition in which
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in which our wants for goods and services are greater than the resources available to satisfy those wants.
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Scarcity can exist at the same time
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same time that wealth does.
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Effects of Scarcity
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-the need to make choices, -the need for a rationing device -competition
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A rationing device is
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a means of deciding who gets what of available resources and goods.
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An example of a rationing device would be
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the dollar price
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True or false? Scarcity is the condition of finite resources. Explain your answer.
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It takes two things for scarcity to exist: finite resources and infinite wants. If people's wants were equal to or less than the finite resources available to satisfy their wants, scarcity would not exist. Scarcity exists only because people's wants are greater than the resources available to satisfy their wants. Scarcity is the condition resulting from infinite wants clashing with finite resources.
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How does competition arise out of scarcity?
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Because of scarcity, there is a need for a rationing device. People will compete for the rationing device. For example, if dollar price is the rationing device, people will compete for dollars.
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How does choice arise out of scarcity?
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Because our unlimited wants are greater than our limited resources—that is, because scarcity exists—some wants must go unsatisfied. We must choose which wants we will satisfy and which we will not.
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Opportunity costs
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The most highly valued opportunity or alternative forfeited when a choice is made
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Economists believe that a change in opportunity cost can change
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a person's behavior
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The higher the opportunity cost of doing something,
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the less likely it will be done
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the word marginal is a synonym for
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for additional.
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Marginal benefits
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additional benefits. The benefits connected to consuming an additional unit of a good or undertaking one more unit of an activity.
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Marginal costs
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Additional costs. The costs connected to consuming an additional unit of a good or undertaking one more unit of an activity.
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Decisions at the margin
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Decision making characterized by weighing the additional (marginal) benefits of a change against the additional(marginal) costs of a change with respect to current conditions.
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the right amount of anything is
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is the optimal or efficient amount
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the optimal or efficient amount
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the amount for which the marginal benefits equal the marginal costs.
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you have achieved efficiency when
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when the marginal benefits equal the marginal costs.
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efficiency, which is consistent with , is also consistent with
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maximizing net benefits.
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An incentive is
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something that encourages or motivates a person to undertake an action.
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Unintended effects
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A positive or negative outcome that was not anticipated
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Exchange/Trade
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The process of giving up one thing for another
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Economics is sometimes called the
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"science of exchange" because so much that is discussed in economics has to do with exchange.
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Give an example to illustrate how a change in opportunity cost can affect behavior.
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Every time a student is late to history class, the instructor subtracts one-tenth of a point from the person's final grade. Economists predict that, if the instructor raises the opportunity cost of being late to class by subtracting one point from the final grade, then fewer students will be late to class. In sum, the higher the opportunity cost is of being late to class, the less likely it is that people will be late to class.
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Studying has both costs and benefits. If you continue to study (say, for a test) for as long as the marginal benefits of studying are greater than the marginal costs, and you stop studying when the two are equal, will your action be consistent with having maximized the net benefits of studying? Explain your answer.
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Yes.
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You stay up an additional hour to study for a test. The intended effect is to raise your test grade. What might be an unintended effect of staying up another hour to study?
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You might feel sleepy the next day, you might be less alert while driving, and so on.
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When it comes to economic problems, the national debate usually proceeds along these lines:
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First, the problem is identified and defined or described. Second, individuals attempt to identify the cause of the problem. Third, individuals propose solutions to the problem.
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The term ceteris paribus means
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"all other things constant" or "nothing else changes."
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Ceteris paribus is
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an assumption used to examine the effect of one influence on an outcome while holding all other influences constant.
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a theory is
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an abstract representation of the world designed with the intent to better understand the world.
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abstract means that you
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omit certain variables or factors when you try to explain or understand something.
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Abstract is the process
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(used in building a theory) of focusing on a limited number of variables to explain or predict an event.
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What is the purpose of building a theory?
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The purpose of building a theory is to explain something that is not obvious. For example, the cause of changes in the unemployment rate is not obvious, so the economist would build a theory to explain changes in the unemployment rate.
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How might a theory of the economy differ from a description of it?
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A theory of the economy seeks to explain why certain things in the economy happen. For example, a theory of the economy might try to explain why prices rise or why output falls. A description of the economy is simply a statement of what exists in the economy. For example, we could say that the economy is growing or contracting or that more jobs are available this month than last month. A description doesn't answer questions; it simply tells us what is. A theory tries to answer a "why" question, such as, "Why are more jobs available this month than last month?"
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Why is it important to test a theory? Why not simply accept a theory if it sounds right?
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If you do not test a theory, you will never know whether you have accomplished your objective in building the theory in the first place. In other words, you will not know whether you have explained something accurately. We do not simply accept a theory if it sounds right, because what sounds right may actually be wrong. For example, no doubt during the time of Columbus the theory that the earth was flat sounded right to many people and the theory that the earth was round sounded ridiculous. The right-sounding theory turned out to be wrong, though, and the ridiculous-sounding theory turned out to be right.
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Your economics instructor says, "If the price of going to the movies goes down, people will go to the movies more often." A student in class says, "Not if the quality of the movies goes down." Who is right, the economics instructor or the student?
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Unless stated otherwise, when economics instructors identify the relationship between two variables, they implicitly make the ceteris paribus assumption. In other words, the instructor is really saying, "If the price of going to the movies goes down, people will go to the movies more often—assuming that nothing else changes, such as the quality of movies, and so on." Instructors don't always state "ceteris paribus," because if they did, they would be using the term every minute of a lecture. So the instructor is right, although a student who is new to economics might not know what the instructor is assuming but not saying.
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Economics is sometimes broken down into different categories according to the type of questions asked. Four common economic categories are
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positive economics, normative economics, microeconomics, and macroeconomics.
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Positive economics attempts to
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determine what is. (Cause and Effect)
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Normative economics addresses
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what should be. (Judgment and Opinion)
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Microeconomics is the branch of economics that deals with
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human behavior and choices as they relate to relatively small units: an individual, a firm, an industry, a single market.
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Macroeconomics is the branch of economics that deals with
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human behavior and choices as they relate to an entire economy.
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**LEARN MICRO/MACRO QUESTIONS
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decisions at the margin
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Intangible goods are
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those that have no concrete existence, such as friendship or an economics lecture
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Tangible goods are
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concrete goods that can be exchanged and reproduced more easily than intangible goods, such as a videotape of an economics lecture or a cell phone.
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Bads are
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goods that provide disutility. Examples are pollution, the noise produced by planes taking off at an airport, or the smell a skunk produces etc. See Section: Goods and Bads.
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S=
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W>R
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W=
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infinite
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R=
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finite
Consumer Decision Making Process
Goods And Services Market
Marketing
Principles Of Marketing
Satisfy Customer Needs
Sports Marketing
Marketing Fundamentals c712 – Flashcards 26 terms
26 terms
Preview
Marketing Fundamentals c712 – Flashcards
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Marketing is:
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the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings of value to customers and society at large
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Utility is:
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want-satisfying power of goods or service
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4 basic kinds of Utility are:
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form, time, place, and ownership
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Marketing creates:
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time, place, and ownership Utilities
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3 factors that forced marketers to embrace global marketplace:
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Expanded international trade agreements; New Tech that brought previously isolated nations to the marketplace; Greater interdependence of the world's Economy
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Production Era
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business people believed that quality products would sell themselves / btwn 1920 and 1940
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Sales Era
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Emphasized trying to convince people to buy / prior to 1950
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Marketing Era or Concept
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company-wide focus on customer orientation with objection of long term success / after 1950
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Relationship Era
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Focus placed on establishing and maintaining long term relationship btwn customers and suppliers / after 1990s
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Social Era
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Encourages companies to use the web and social media to connect to customers and to market goods/services.. / since 2000s
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Marketing Myopia
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Managements failure to recognize scope of business. Marketers focused too narrowly on products and miss opportunity to satisfy customer needs.
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Not For Profit marketing
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operates in both public and private sector. May market to multiple-type publics (clients & sponsors). May form an alliance to promote each other's causes and services. HAS LESS CONTROL OVER ORG'S DESTINY
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5 types of non-traditional marketing
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1. Person marketing (usually celebrity or politics) 2. Place marketing 3. Cause marketing (social issue or idea) 4. Event marketing (sports or cook off) 5. Organization marketing (influence others to accept concept)
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Relationship Marketing is:
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Interaction w/customers. Focus on building long term relationship from new buyer to loyal supporter to advocate.
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Social Marketing is:
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Use of interactive tech such as facebook or twitter to communicate w/customers and form a type of partnership thru direct communication
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Strategic alliance
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organizations that form a partnership creating a competitive advantage
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8 universal functions of marketing
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First Group: Exchange function (buy/sell). Second Group: physical distribution, transport, storing. Third Group: Facilitating functions, standardized -grading product, financing, risk taking, & securing market info.
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Ethics are:
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moral standards of behavior expected by society
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Ethical behavior and social responsibility will:
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produce increased employee loyalty and better public image
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Social responsibility is:
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marketing philosophies, policies, procedures, and actions with primary objective to enhance society and protect the environment.
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Strategic alliance
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agreement btwn 2 or more parties to pursue a set of agreed upon objectives while remaining independent organizations
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Marketing functions that represent exchange
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buying and selling
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Marketing functions that represent physical distribution
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Transportation and storing
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Marketing functions that represent facilitating
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Standardization & grading, risk taking, and securing market info
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To create a customer:
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3 steps are ; 1. Identify needs in marketplace 2. which needs can the busn serve? 3. develop goods/ services to convert "potential buyers" to customers
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marketing improves
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the quality of life of customers
Goods And Services Market
International Marketing
Marketing
Principles Of Marketing
BUS 010 CHAPTER 13 – Flashcards 14 terms
14 terms
Preview
BUS 010 CHAPTER 13 – Flashcards
question
________ is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
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Marketing
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A firm gathers ___________data by conducting surveys, interviewing customers, or mailing out questionnaires
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Primary
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__________ consists of information that has already been researched by others and is published in journals or books or has been made available online
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Secondary data
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A consumer's decision-making process is influenced by his/her __________, consisting of those people who help shape the consumer's beliefs, attitudes, values or behavior
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Prefrence group
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Which of the following is most consistent with a relationship marketing strategy?
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the development of a Web site that seeks customer feedback and allows customers to communicate with each other
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The number of buyers in business-to-business markets is:
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relatively small compared to the consumer market
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The business philosophy of "produce as much as you can because there is a limitless market" is consistent with which of the following marketing eras?
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Production Era
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During the ________, the prevalent business philosophy turned from an emphasis on production to an emphasis on advertising and selling
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Selling era
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The __________ is based on three elements: (1) a customer orientation, (2) a service orientation, and (3)a profit orientation.
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Marketing concept
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A ___________ orientation refers to the process of determining the wants and needs of buyers and then providing goods and services to meet or exceed their expectations.
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costumer
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A firm's marketing mix refers to the combination of:
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strategies regarding product, price, place, and promotion.
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Which of the following describes a word, letter, or group of words or letters that differentiate the goods and services of a seller from those of competitors?
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brand name
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__________ consists of all the techniques sellers use to persuade consumers to buy their goods and services.
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promotion
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Successful marketing researchers:
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listen to customers and other stakeholders
Economics
Goods And Services
Goods And Services Market
Provides Goods And Services
US Global Economics 2.02 Quiz: Consumers and Producers – Flashcards 10 terms
10 terms
Preview
US Global Economics 2.02 Quiz: Consumers and Producers – Flashcards
question
In the game of economics, every person alive plays the role of which of the following?
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consumer
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Which can intensify peer pressure?
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btrends
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Which best explains how consumers' purchases influence the decisions of producers?
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Producers can figure out what consumers are willing to pay based on what they buy.
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Which best describes the purpose of market research?
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helping producers make more money
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In the game of economics, who gives producers the information they need to determine how much people are willing to pay for a good or service?
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consumers
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Which consumer purchase is the result of cultural influences?
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a turkey for Thanksgiving dinner
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In economics, workers are producers. Which other role do they play?
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consumers
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In economics, which is the major role of business?
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organize production
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Which helps producers figure out what consumers want?
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market research
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Which describes the economic role of a producer?
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provides goods and services
Economics
Goods And Services Market
Economics Unit 2 quizes – Flashcards 40 terms
40 terms
Preview
Economics Unit 2 quizes – Flashcards
question
Which describes the economic role of a producer?
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provides goods and services
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In economics, workers are producers. Which other role do they play?
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consumers
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In economics, which is the major role of business?
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organize production
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Which consumer purchase is the result of peer pressure?
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mirrored sunglasses because all your friends have them
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Which helps producers figure out what consumers want?
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market research
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Which best explains how consumers' purchases influence the decisions of producers?
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Producers can figure out what consumers are willing to pay based on what they buy
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In economics, which provides the goods and services available to consumers?
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producers
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Which can intensify peer pressure?
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trends
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Which best describes the purpose of market research?
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helping producers make more money
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In the game of economics, which player use goods and services?
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consumers
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Which best explains how budgeting helps consumers reach their financial goals?
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Budgets allow consumers to control how much money they have going out for expenses
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Which best explains why some people play the lottery and others do not?
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Different people have different levels of risk aversion
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Which is not a tool of rational choice?
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devising monetary policies
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Which best states the purpose of advertising?
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getting consumers to choose a specific brand of product or service
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Which is a way that the media influences consumer behavior?
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product placement
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Which describes opportunity cost?
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the benefits of the best alternative option that are given up by a particular decision
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Which refers to the satisfaction consumers get from the goods and services they purchase?
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utility
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Which best explains the difference between short-term and long-term planning?
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Short-term planning takes care of regular expenses in the near future while long-term planning involves saving for large purchases further in the future
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Which is an essential part of making a rational choice?
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doing cost-benefit analysis
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Which describes one of the ways that culture influences consumer behavior?
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Traditions and holidays often involve specific foods or gifts
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Which accurately explains how profit is calculated?
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Costs are subtracted from revenues
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Which statement 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 type of market structure is most closely associated with fast-food restaurants?
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monopolistic competition
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Which best explains what the profit motive pushes producers to do?
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minimize costs and maximize revenue
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Which do entrepreneurs not use to introduce innovation into a market?
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new economic systems
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Which are sources of revenue for media companies?
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advertising and subscriptions
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Which is a market structure that can exist in a free-market system?
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monopolistic competition
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Which controls almost all of the media industry?
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a few large companies
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Which describes a situation where competition between producers exists?
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Two or more producers are trying to sell the same good or service to the same consumers
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Which best states the purpose of using a production possibilities frontier?
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etting up efficient production
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A corporation is owned by whom?
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stockholders
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Before starting a business, many people find it useful to describe the way the company will operate in which of the following?
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a business plan
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Which type of business is owned by anyone who wants to buy stock?
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public corporation
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For which are sole proprietors completely responsible?
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financial losses
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The addition of the word google to dictionaries demonstrates that Google has been successful at which business strategies?
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branding
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The Google business model is most similar to the model followed by which other industry?
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media
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Which is a disadvantage of partnerships compared to sole proprietorships?
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It is sometimes difficult for partners to agree on every business decision
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Which business model is utilized by a grocery store?
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shopkeeper
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Which explains one way that a general partnership differs from a limited partnership?
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Each partner in a general partnership is fully responsible for all of the business's debts
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Which best characterizes the corporate culture at Google?
answer
relaxed and non-traditional
AP Economics
Economics
Goods And Services Market
Principles Of Economics: Macroeconomics
Principles Of Economics: Microeconomics
Macroeconomics Chapter 1: Economics: The Core Issue – Flashcards 21 terms
21 terms
Preview
Macroeconomics Chapter 1: Economics: The Core Issue – Flashcards
question
Capital, as economist use the term, refers to
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Final goods that are used to produce other goods and services.
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The role of the entrepreneur in an economy is to
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Bring the factors of production together and assume the risk of production.
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Opportunity cost may be defined as the
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Goods or services that are forgone in order to obtain something else.
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A production possibilities curve indicates the
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maximum combinations of goods and services an economy can produce given its available resources and technology.
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A point of a nation's production possibilities curve represents
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The full employment of resources to achieve a particular combination of goods and services.
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According to the law of increasing opportunity costs
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In order to produce additional units of a particular good, it is necessary for society to sacrifice increasingly larger amounts of alternative goods.
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The points on a production possibilities curve show
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Potential output.
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Which the following events would allow the production possibilities curve to shift outward?
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More teenagers enter the labor force.
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Which of the following will cause the production possibilities curve to shift inward?
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A decrease in the size of the labor force.
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In a market economy, the people who receive the goods and services that are produced are those who
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Are willing to pay the highest price. It IS NOT those who need or want the goods or services the most or those who have the most political power.
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Adam Smith's invisible hand is now called
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The market mechanism.
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The doctrine of laissez faire is based on the belief that
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Markets are likely to do a better job of allocating resources than government directives.
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Which of the following can be used to correct market failure?
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Laws and regulations. Market failure IS NOT corrected by the market mechanism, laissez faire price polices, or government failure.
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If market signal result in pollution beyond the optimal level, then
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The market mechanism has failed to achieve social efficiency.
question
Which of the following is not a macroeconomic statement?
answer
Jenny's wage rate rose, and in response, she decided to work more hours. This is a microeconomic statement. Macroeconomic statements would be: The unemployment rate for the United States rose to 5 percent in the last quarter, the Federal Reserve lowered interest rates at its last meeting, and congress increased the minimum wage rate in January.
question
Using Figure 1.3 and PP1, an increase in the capacity to produce can be represented by a movement from
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Point C to Point F.
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Using Figure 1.3 and PP1 at Point A,
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There is inefficient use of available resources.
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Which of the following is true about the combination of mops and brooms represented by point E ing Figure 1.3 and using PP1?
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Point E is attainable only if more resources become available or technological advances are made.
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An increase in the proportion of the population that is unemployed above the normal rate is best represented in Figure 1.3 and using PP1 by a movement from Point
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C to Point A.
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A movement from point F to point D in Figure 1.3 results in
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A reallocation of resources from broom production to mop production.
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In Figure 1.3, a shift of the production possibilities curve from PP1 to PP2 could be caused by
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The use of improved production technology.
Economics
Goods And Services Market
Individuals And Societies
New Business Opportunities
MicroEconomics Chapter 1 Roger A. Arnold 10th edition – Flashcards 30 terms
30 terms
Preview
MicroEconomics Chapter 1 Roger A. Arnold 10th edition – Flashcards
question
Abstract
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The process (used in building a theory) of focusing on a limited number of variables to explain or predict an event.
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Bad
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Anything from which individuals receive disutility or dissatisfaction.
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Capital
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Produced goods that can be used as inputs for further production, such as factories, machinery, tools, computers, and buildings.
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Ceteris Paribus
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A Latin term meaning "all other things constant" or "nothing else changes."
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Decisions at the Margin
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Decision making characterized by weighing the additional (marginal) benefits of a change against the additional (marginal) costs of a change with respect to current conditions.
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Directly Related
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Two variables are directly related if they change in the same way.
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Disutility
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The dissatisfaction one receives from a bad.
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Economics
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The science of scarcity; the science of how individuals and societies deal with the fact that wants are greater than the limited resources available to satisfy those wants.
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Efficiency
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Exists when marginal benefits equal marginal costs.
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Entrepreneurship
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The talent that some people have for organizing the resources of land, labor, and capital to produce goods, seek new business opportunities, and develop new ways of doing things.
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Exchange (Trade)
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The giving up of one thing for something else.
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Good
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Anything from which individuals receive utility or satisfaction.
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Gross Domestic Product (GDP)
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The value of the entire output produced annually within a country's borders.
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Incentive
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Something that encourages or motivates a person to undertake an action.
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Independent
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Two variables are independent if, as one changes, the other does not.
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Inversely Related
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Two variables are inversely related if they change in opposite ways.
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Labor
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The physical and mental talents people contribute to the production process.
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Land
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All natural resources, such as minerals, forests, water, and unimproved land.
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Macroeconomics
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The branch of economics that deals with human behavior and choices as they relate to highly aggregate markets (e.g., the goods and services market) or the entire economy.
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Marginal Benefits
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Additional benefits; the benefits connected with consuming an additional unit of a good or undertaking one more unit of an activity.
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Marginal Costs
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Additional costs; the costs connected with consuming an additional unit of a good or undertaking one more unit of an activity.
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Microeconomics
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The branch of economics that deals with human behavior and choices as they relate to relatively small units: an individual, a firm, an industry, a single market.
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Normative Economics
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The study of "what should be" in economics.
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Opportunity Cost
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The most highly valued opportunity or alternative forfeited when a choice is made.
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Positive Economics
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The study of "what is" in economics.
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Rationing Device
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A means for deciding who gets what of available resources and goods.
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Scarcity
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The condition in which our wants are greater than the limited resources available to satisfy those wants.
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Slope
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The ratio of the change in the variable on the vertical axis to the change in the variable on the horizontal axis.
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Theory
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An abstract representation of the real world designed with the intent to better understand it.
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Utility
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The satisfaction one receives from a good.
Economics
Economy
Goods And Services Market
Market Based Economic System
Political Economy
Production Possibilities Curve
Economic Concepts and Choices 22 terms
22 terms
Preview
Economic Concepts and Choices
question
What involves making economic choices based on customs?
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Traditional economy
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What involves having the government make most economic decisions?
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command economy
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What is based mainly on individual choice?
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Market economy
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What is an advantage of traditional economy?
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little disagreement over economic goals
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What is a disadvantage of a traditional economy?
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Does not ensure maximum productivity
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What is another term for command of property?
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Centrally- planned economy
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What allows no private ownership of a property?
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Communism
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Who wrote an economic study called Capital?
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Karl Marx
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What is an advantage of a command economy?
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The economy attempts to provide for everyone
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What nation has a command economy?
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North Korea
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means " leave" things alone
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Laissez faire
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the idea that consumers are free to buy what they want
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consumer sovereignty
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market for goods and services
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product market
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Market for factors of production
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factor market
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financial gain from a business transaction
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profit
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involves concentrating efforts in a certain area
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specialization
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The foundation of Market economies
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competition
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Simplified representations of complex economic activities are called economic
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Models
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PPC is an acronym for production possibilities curve
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PPC is an acronym for
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technology is fixed
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When creating a PPC, economists assume that technology is fixed
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The condition in which economic resources are not being used to their full potential is called
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underutilization
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impossible to meet because resources are fixed
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Any point outside the curve of a PPC represents a goal that is
Economics
Goods And Services Market
Production Possibilities Frontier
Flashcards and Answers – Final Exam Review 63 terms
63 terms
Preview
Flashcards and Answers – Final Exam Review
question
A popular model used to illustrate the concept of opportunity cost is Select one: a. entrepreneurship. b. the production possibilities frontier. c. the factors of production. d. the paradox of value.
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the production possibilities frontier.
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An economy at its production possibilities frontier is operating Select one: a. at full potential. b. as a free enterprise economy. c. with slow economic growth. d. without division of labor.
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at full potential.
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Manufactured goods needed to produce other goods and services are called Select one: a. Gross Domestic Product (GDP). b. nondurable goods. c. consumer goods. d. capital goods.
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capital goods
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The dollar value of all final goods and services and the most comprehensive measure of a country"s total production output is Select one: a. a cost-benefit analysis. b. its standard of living. c. Gross Domestic Product (GDP). d. financial capital.
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Gross Domestic Product (GDP).
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The money used to buy the tools and equipment needed for production is known as Select one: a. capital goods. b. wealth. c. the factors of production. d. financial capital.
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financial capital.
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The study of economics is important because it enables us to Select one: a. increase our consumption of consumer goods. b. determine what goods ought to be produced. c. describe our standard of living. d. become better decision makers.
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become better decision makers.
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A market economy Select one: a. permits extensive government intervention. b. does not provide for everyone's basic needs. c. offers a high degree of certainty for its workers. d. limits the choices of goods and services available.
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does not provide for everyone's basic needs.
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The concept of voluntary exchange means Select one: a. neither buyer nor seller has made a profit. b. that no money was exchanged. c. people freely and willingly engage in market transactions. d. only workers will benefit from the exchange.
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people freely and willingly engage in market transactions.
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The minimum wage is an example of a federal law that supports Select one: a. economic efficiency. b. economic equity. c. economic growth. d. full employment.
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economic equity.
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The United States can best be described as having a Select one: a. pure free enterprise system. b. modified private enterprise system. c. command economy. d. traditional system.
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modified private enterprise system.
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An advantage of a corporation is that Select one: a. owners have limited liability for debt. b. owners pay fewer taxes than owners of other forms of business. c. the business is subject to little government regulation. d. owners have direct and immediate control over daily management of the business.
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owners have limited liability for debt.
question
In a general partnership, Select one: a. partners usually draw up legal papers called articles of partnership. b. partners are only liable for the business's debt up to the amount of their investment. c. partners must pay specific business taxes. d. the business continues even if one partner dies.
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partners usually draw up legal papers called articles of partnership.
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Non-profit organizations may Select one: a. pay income taxes. b. pay dividends. c. provide goods and services to members. d. issue stock.
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provide goods and services to members.
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The local chamber of commerce works to Select one: a. earn dividends for members. b. aid member companies in negotiating with labor unions. c. promote the welfare of its members and the community. d. protect its members from consumer complaints.
answer
promote the welfare of its members and the community.
question
A demand schedule shows Select one: a. an upward-sloping curve that illustrates the positive relationship between price and quantity demanded. b. a listing of the various quantities demanded of a particular product at all prices that might prevail in the market. c. the fluctuations in demand that occurred over a specified period of time. d. the fluctuations in demand scheduled to occur over the following year.
answer
a listing of the various quantities demanded of a particular product at all prices that might prevail in the market.
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Advertising, fashion trends, and new product introductions serve to Select one: a. create consumer needs. b. create consumer demand. c. increase income effectiveness. d. minimize the income effect.
answer
create consumer demand.
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The supply of a product normally decreases if Select one: a. the price of the product increases. b. more producers enter the market. c. taxes on the product increase. d. the cost of inputs goes down.
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taxes on the product increase.
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Total cost is the sum of the Select one: a. fixed and marginal costs. b. fixed costs and overhead. c. fixed and variable costs. d. all variable costs.
answer
fixed and variable costs.
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All of the following are characteristics of allocation by rationing EXCEPT Select one: a. high administrative cost. b. efficiency. c. lack of fairness. d. diminished incentive for workers.
answer
efficiency
question
In a market economy, a high price is a signal for Select one: a. government to intervene to protect consumers. b. producers to supply more and consumers to buy less. c. producers to supply less and consumers to buy less. d. producers to supply less and consumers to buy more.
answer
producers to supply more and consumers to buy less.
question
When economic or political conditions are unstable, Select one: a. the price of gold rises to $850 per ounce. b. the demand for gold increases. c. the supply of gold decreases. d. the price of gold decreases.
answer
the demand for gold increases.
question
A decrease in competition within an industry can result in Select one: a. increased output. b. more efficient resource allocation. c. lower prices. d. a firm wielding economic and political power.
answer
a firm wielding economic and political power.
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A monopoly that is based on the ownership or control of a manufacturing method, process, or other scientific advance is a Select one: a. natural monopoly. b. geographic monopoly. c. government monopoly. d. technological monopoly.
answer
technological monopoly.
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Perfect competition is characterized by all of the following EXCEPT Select one: a. well-informed buyers and sellers. b. a large number of buyers and sellers. c. identical products. d. sellers acting together to set prices.
answer
sellers acting together to set prices.
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All of the following can be used to establish more equal pay between men and women EXCEPT the Select one: a. Fair Labor Standards Act. b. set-aside contracts. c. Civil Rights Act of 1964. d. Equal Pay Act of 1963.
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Fair Labor Standards Act.
question
Workers who have the skills to operate machines and who require a minimum amount of training are Select one: a. skilled labor. b. semiskilled labor. c. unskilled labor. d. professional labor.
answer
semiskilled labor.
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Workers with knowledge-based education and managerial skills are Select one: a. professional labor. b. semiskilled labor. c. unskilled labor. d. skilled labor.
answer
professional labor.
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FICA includes taxes to pay for Select one: a. unemployment and medicare. b. Social Security and medicare. c. medicare and worker's compensation. d. Social Security and unemployment.
answer
Social Security and medicare.
question
Intergovernmental revenues are generally intended for Select one: a. environmental cleanup. b. parks and recreation. c. education and public welfare. d. public transportation.
answer
education and public welfare.
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The "incidence of a tax" Select one: a. is a special tax on individuals with high income. b. is a benefit tax. c. refers to those who bear the final burden of taxation. d. is a tax paid by self-employed workers.
answer
refers to those who bear the final burden of taxation.
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The authority to levy a federal income tax comes from Select one: a. an act of Congress. b. the Sixteenth Amendment. c. the Bill of Rights. d. the Fifth Amendment.
answer
the Sixteenth Amendment.
question
The flat tax Select one: a. includes incentives that promote positive economic behavior. b. would increase the need for individuals to hire tax accountants. c. allows too many loopholes. d. simplifies the tax process.
answer
simplifies the tax process.
question
All levels of government combined consume about Select one: a. one-half of the nation's output. b. one-tenth of the nation's output. c. three-fourths of the nation's output. d. one-third of the nation's output.
answer
one-third of the nation's output.
question
The largest category of spending for most local governments is Select one: a. public welfare. b. police protection. c. elementary and secondary education. d. hospitals.
answer
elementary and secondary education.
question
The United States government accumulated huge deficits during the 1980s due to Select one: a. huge, annual increases in welfare. b. environmental cleanup. c. a shift in the incidence of taxes to corporations. d. a doubling of spending on national defense.
answer
a doubling of spending on national defense.
question
In order for money to have value, it must have all of the following characteristics EXCEPT Select one: a. portability. b. plentiful availability. c. durability. d. divisibility.
answer
plentiful availability.
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Money loses its value when it Select one: a. becomes too portable. b. becomes too plentiful. c. is divisible. d. is durable.
answer
becomes too plentiful.
question
The FDIC was established to Select one: a. create a government banking monopoly. b. federalize the banking system. c. protect the savings of the American people. d. help with the financing of World War II.
answer
protect the savings of the American people.
question
The Federal Reserve System was established in Select one: a. 1799. b. 1881. c. 1863. d. 1913.
answer
1913
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When a bank is about to collapse, Select one: a. the FDIC must publicly seize the bank. b. the FDIC may secretly seize the bank. c. up to $10,000 can be paid to depositors. d. up to $10,000 can be paid to shareholders.
answer
the FDIC may secretly seize the bank.
question
A stock transaction that is made immediately at the market price is made in the Select one: a. spot market. b. options market. c. futures market. d. futures options market.
answer
spot market.
question
Bonds Select one: a. are rated according to risk from A through G. b. are a consistently low-risk investment choice. c. pay a fixed interest rate over a specified period of time. d. are insured by the federal government.
answer
pay a fixed interest rate over a specified period of time.
question
Junk bonds Select one: a. carry a low rate of return. b. are exceptionally risky. c. are usually tax-exempt. d. are issued by municipalities.
answer
are exceptionally risky.
question
Most stocks in the United States are traded on the Select one: a. over-the-counter market. b. New York Stock Exchange. c. regional stock exchanges. d. American Stock Exchange.
answer
over-the-counter market.
question
Baby boomers are those people born between Select one: a. 1955 and 1965. b. 1965 and 1975. c. 1946 and 1964. d. 1935 and 1945.
answer
1946 and 1964.
question
The benefits of long-term economic growth include all of the following EXCEPT Select one: a. an increase in the availability of land. b. an increase in the standard of living. c. an increase in employment. d. a boost in economic growth of other nations.
answer
an increase in the availability of land.
question
The census is taken every Select one: a. eight years. b. ten years. c. two years. d. four years.
answer
ten years.
question
To determine Gross National Product, Select one: a. multiply all final goods and services by their prices. b. add to GDP all payments received by Americans outside the U.S. and subtract payments made to foreign-owned resources in the U.S. c. add to GDP all payments made to foreign-owned resources in the U.S.and subtract payments received by Americans outside the U.S. d. divide all final products and services by their prices.
answer
add to GDP all payments received by Americans outside the U.S. and subtract payments made to foreign-owned resources in the U.S.
question
According to the cost-push theory, inflation is caused by Select one: a. producers. b. workers. c. government. d. consumers.
answer
workers
question
According to the demand-pull theory, inflation is caused by Select one: a. consumers. b. government. c. producers. d. workers.
answer
consumers
question
The business cycle since World War II has been characterized by Select one: a. uninterrupted expansion. b. uninterrupted recession. c. extended expansions alternating with brief recessions. d. brief expansions alternating with lengthy recessions.
answer
extended expansions alternating with brief recessions.
question
This marked the beginning of the Great Depression in 1929: Select one: a. declaration of a "bank holiday" b. end of World War I c. beginning of World War II d. stock market crash
answer
stock market crash
question
Assets are Select one: a. cash a bank owes to depositors. b. the same as net worth. c. legal reserves. d. properties, possessions, and claims on others.
answer
properties, possessions, and claims on others.
question
Liabilities are Select one: a. debts and obligations. b. reserves a bank must set aside. c. cash a bank can use for making loans. d. the same as net worth.
answer
debts and obligations.
question
Why will the Fed's action in the passage cause the result described? Select one: a. Banks will have to meet a higher reserve requirement. b. Banks will raise their loan interest rates. c. Inflation will increase. d. Sellers of expensive items will raise their prices.
answer
Banks will raise their loan interest rates.
question
The Fed's Federal Open Market Committee Select one: a. advises the Fed on the overall health of the economy. b. advises the Fed on consumer credit laws. c. is the Fed's primary monetary policymaking body. d. regulates savings and loan associations, savings banks, and credit unions.
answer
is the Fed's primary monetary policymaking body.
question
The Federal Reserve Select one: a. is made up of 12 district banks and 25 branch banks. b. is made up of district banks that operate independently from one another. c. is managed by a 12-member board of directors. d. was established in 1930s.
answer
is made up of 12 district banks and 25 branch banks.
question
Aggregate demand will increase Select one: a. when productivity is low. b. if consumers save less and spend more. c. if the dollar declines in value. d. if consumers save more and spend less.
answer
if consumers save less and spend more.
question
Deregulation is most closely associated with Select one: a. laissez-faire economics. b. Keynesian economics. c. supply-side economics. d. demand-side economics.
answer
supply-side economics.
question
Unlike demand-side economics, supply-side economics Select one: a. advocates increased government involvement in business. b. emphasizes increasing consumer purchasing power. c. urges higher taxes to increase spending on government programs. d. advocates reduced government involvement in business.
answer
advocates reduced government involvement in business.
question
A persistent trade deficit causes Select one: a. unemployment to increase in import industries. b. lower prices on imported goods. c. unemployment to increase in export industries. d. the dollar to grow stronger.
answer
unemployment to increase in import industries.
question
A protective tariff is used to Select one: a. expand trade. b. gain a comparative advantage. c. give inefficient domestic industries an advantage. d. increase revenue.
answer
give inefficient domestic industries an advantage.
question
The United States trade deficit causes Select one: a. worldwide recessions. b. the value of the dollar to strengthen in foreign exchange markets. c. the value of the dollar to fall in foreign exchange markets. d. increased employment opportunities for Americans in import industries.
answer
the value of the dollar to fall in foreign exchange markets.
