U.S. and Global Economics: Unit 2 – Flashcards
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In the game of economics, which player has the role of providing goods and services?
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producers
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Which best describes how consumers let producers know what they want to buy and how much they're willing to pay?
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The purchases consumers make indicate their desires to producers.
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In economics, which provides the goods and services available to consumers?
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producers
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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 describes the economic role of a consumer?
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buys goods and services
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Which are useful for conducting market research?
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focus groups
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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 best describes the purpose of market research?
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helping producers make more money
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Which can intensify peer pressure?
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trends
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Which is useful for making rational choices?
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financial planning
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Which best describes the main purpose of a budget?
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plan income and expenses
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Which best explains the purpose of long-term planning?
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save for large purchases in the future
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Which describes the economic idea of utility?
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level of satisfaction consumers feel over purchases
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Which is not something that consumers need to pay attention to in order to make rational choices?
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productivity levels
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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 best describes how culture can influence consumer behavior?
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Cultures have traditions that involve consuming specific goods or services.
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Which best explains why some people invest their savings in the stock market and others put their savings in bank accounts?
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Some people feel that the stock market is too risky for them.
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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 best states the purpose of the news media?
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providing objective information that allows people to make good decisions
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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 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 best states the purpose of using a production possibilities frontier?
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setting up efficient production
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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 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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Which type of market structure is most closely associated with eBay?
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pure competition
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Which does not motivate entrepreneurs?
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security
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Which are sources of revenue for media companies?
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advertising and subscriptions
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Which best explains why companies pay for advertising space?
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expose an audience to messages about their products
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Which dominates the media industry?
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media conglomerates
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For which are sole proprietors completely responsible?
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financial losses
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Which describes an important difference between general partnerships and limited partnerships?
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A general partnership has unlimited liability for all partners while a limited partnership has limited liability.
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Which is an advantage of partnerships over sole proprietorships?
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Partnerships generally have more money to invest in starting or expanding a business.
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A corporation gives out its profits as dividends paid to whom?
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stockholders
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Which type of business is owned by anyone who wants to buy stock?
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public corporations
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Which drives the way a company does business?
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business model
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Which business model has traditionally been used by magazines?
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subscription
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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 best characterizes the corporate culture at Google?
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relaxed and non-traditional
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Which statement indicates why Google has been successful at branding?
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Google is a corporate name that has become a common term for "search the Internet."
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Which is the primary role of a producer?
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providing goods and services
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In order to know what people want to buy and how much they're willing to pay, producers pay attention to which of the following?
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consumers' purchases
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Which economic player is most closely associated with the dual role of consumer and producer?
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worker
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Which is the primary role of the consumer?
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using goods and services
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Which best explains the purpose of market research?
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Market research helps producers earn more profits.
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Which consumer influence is represented by the action of buying an item to save money?
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price
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Which action provides the most help for making a rational choice?
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engaging in finical planning
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Which is the purpose of a budget?
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keeping their expenses below their income
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Which term refers to the personal satisfaction someone gets from consuming goods and services?
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utility
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Which best describes discretionary spending?
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buying goods according to what one want or needs
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Which best explains why some people get life insurance and others don't?
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Different people are willing to face different kinds of risks.
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Which is a technique advertisers employ to increase consumer demand for their goods and services?
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turning luxuries into necessities
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What is the purpose of advertising?
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increase consumer demand
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Which are subtracted from revenues to calculate profit?
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cost
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What encourages produces to reduce costs and increase revenues?
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the profit motive
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Which best states the main difference between a monopoly and an oligopoly?
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Oligopolies involve more than one company while monopolies involve only one.
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Which do media companies sell to earn money?
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advertisements and subscriptions
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Which best describes the purpose of advertising?
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transmit product messages to an audience
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Which is the cause of the media industry's oligopolistic market structure?
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centralization of ownership
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Which is one important difference between a general partnership and a limited partnership?
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A limited partnership allows some business decisions to be made individually.
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Which does a corporation pay to its stockholders?
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dividends
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Which is an advantage corporations enjoy over partnerships?
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The owners of a corporation don't have to work together to make all of the business decisions.
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Which type of business is most likely to use the bricks-and-clicks business model?
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clothing sellers
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Which generates revenue for Google?
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sales of advertisements
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Which explains how Google has become a household word?
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Google has been successful at associating its service with the generic act of searching the Internet.
