| A | B |
|---|
| Labor is to hired for wages and salary | factor market |
| Sum of those economic products that are tangible, scarce, usefull, and transferable | wealth |
| Efficient use of productive resources | productivity |
| condition of limited resources combined with unlimited wants | scarcity |
| people with all their efforts, abilities, and skills | labor |
| alternative choices made by consumers in the marketplace | trade-offs |
| A risk-taker in search of profits | entrepreneur |
| having a worth that can be expressed in dollars and cents | value |
| term used to describe natural resources | gifts of nature |
| Acronym for the idea that everything has a cost | TINSTAAFL |
| Economics may best be defined as a | study of efforts to satisfy seemingly unlimited wants with scarce resources. |
| Goods that are naturally available in abundance are described as | free products |
| A basic requirement for survival is a (n) | need |
| The purchase and use of goods and services to impress other is called | conspicuous consumption |
| Employment in service occupations refers to | people who perform work for other people |
| Productivity goes up whenever | the same output is produced with fewer inputs |
| It is generally agreed that job training is | an investment in human capital |
| Division of labor is characteristic of | assembly line production. |
| Productive inputs doing whatever task they are able to do best is called | specialization |
| In a market economy, the decision of WHAT to produce is often determined by | consumer demands |
| To arrive at an economic decision, a decision-making grid may be used to evaluate | alternative choices of action |
| The production possibilites frontier can be used to illustrate all of the following EXCEPT | specialization and the division of labor |
| Manufactured goods needed to produce other goods and services are called | capital goods |
| They study of economics is important because it enable us to | become better decision makers |
| The factors of production are | land, labor, capital and entrepreneurship |
| The three basic economic questions are | What, How and for Whom to produce |
| Adam Smith was an | economist who wrote "A Wealth of a Nation" |
| Adam Smith believed in the idea of | invisible hand |
| Invisible hand supported the idea | that competition is good |
| He also believed there should be no government intervention know as | laissez-faire |
| Water and diamonds are a good example of | paradox of value |
| The idea of paradox of value is | essentials in life are free, less needed goods are expensive becuase of its limited quantity |
| If the orange crops freezes in California, Iowa residents would pay more for orange juice. This is because of | economic interdependence |
| One way to chart the opportunity cost is called | the production possiblities frontier (PPF) |
| A way of fulfilling a need is known as a | want |
| If an economy is performing at ist production possibility fronteir we say it is | at full potential |
| Assembly line production can best be witnessed | in the automobile industry |
| Assembly line production is also known as | division of labor |
| Why do we use division of labor? | for efficiency |
| The study of careful use of realtively scarce resource is a difinition of | economics |
| What would be an example of investment in human capital? | job training |
| A risk-taker searching for a profit is known as a/an | entrepreneur |
| Items used on a regular basis for more than three years are known as | durable goods |
| Items used less than three years on a regualar basis are known as | consumable goods |
| Purchasing a castle would be an example of | conspicuous consumption |
| Doctors, lawyers, barbers, gardners would be categorized as | service occupations |
| The idea that people can do with their possession what they want to do is | private property |
| Economic activities surrounded by culture, ritual, and habits are known as | traditional economies. |
| In this economy consumer satisfaction would be non-existent | traditional |
| Bringing in new ideas in a traditional economy | would not be accepted |
| A great variety of goods and services would be an example of what kind of economy? | Market |
| Government makes all the decisions for the ecomomy would be considered a____________________ | command economy |
| Because we have some government intervention, we really have a | mixed economy |
| Refusing a job applicant because of age (assuming their with in the labor laws) is known as | descrimination |
| Who provides for public education in the United States? | government |
| The idea of voluntary exchange means | that people freely and willingly engage in market transactions |
| The U.S. has a modified private enterprise economy because | there is some government intervention |
| In what kind of economy would a teenager have the least amount of career choices? | traditional economy |
| Adjusting to change over time would be and advantage of what kind of economy? | Market economy |
| Which group of people determine what ultimately gets produce in a free enterprise economy? | consumers |
| When buyers and sellers engage in transactions | voluntary exchange |
| One of the benefits of economic security | Social Security |
| In this economy a central authority makes most of the economic decisions | command economy |
| What is an organized way of providing for needs and wants of a society? | economic system |
| What do economist call the extent to which a person is better off? | profit |
| A cornerstone of American society | economic freedom |
| The customer is always right. | consumer sovereignty |
| When the income stays the same although the cost of living goes up | He/she is on a fixed income |
| This allows buyers and sellers to come together to exhange goods and services | market economy |
| Both parties benefit | voluntary exchange |
| Cuba has what type of an economy | command |
| When is an economic system successful? | When it satisfies the needs of the people |
| In what type of economic system would an entrepreuner have the best chance of success? | In a market economy |
| What is the role of government? in a modified private enterprise economy | A regulator charged with preserving competition in the marketplace. |
| When general prices go up it is called | inflation |
| What economic goal does the federal law of minimum wage support? | Economic equity |
| What is the incentive to work in a capitalistic society | Private property |
| The United States has what kind of economic system? | A modified private entrprise or a mixed economy |
| Any change in a market economy tend to be ___ | gradual. |
| In a traditional economy there has to be a willingness to _____________ | share goods and services |
| The money borrowed would be considered ________________ | The principal |
| When the business continues | Unlimited Life |
| MacDonalds, Burger King, Kentucky Fried Chicken have businesses in many countries known as | multinational |
| When memebers help sell a product it is known as a | Co-op |
| This type of business is a legal entity but has rights of an individual | Corporation |
| The combining of businesses to make a single company | merger |
| Only one owner runs this business | Sole proprietorship |
| Another name for a part owner of a firm | stockholder |
| Profits paid to shareholders | dividends |
| A ballot so shareholders can vote | Proxy |
| The most common form of business in the U.S. | Sole propretorship |
| When one partner is not an active participant of the daily business he is known as ________ | a limited partner |
| The price one pays for borrowing money | Interest |
| Non-voting shareholders | Preferred stock holders |
| Voting shareholders have what kind of stocks? | common stock |
| A corporation charter is filed where? | With the state of incorporation. |
| Why would two companies want to merge? | Improved production and efficiency |
| For whom would diversification be an advantage? | conglomerates |
| Describe a multinational company | Is a citizen of several countries,move resources, goods, services and financial capital acroos natioanl borders |
| Name some non-profit organizations | Schools, churches, Girl Scouts, Boy Scouts, Red Cross, Salvation Army |
| If you are an owner of shares in a corporation you are a ___________ | Stockholder |
| Who deos not have to pay a separate business tax? | A sole proprietor, partnerships |
| Paid vacations, insurance, sick leave are known as _________ | fringe benefits |
| What does the Securiteis and Exchange Commission regulate? | Sale of corporate stock to the public |
| What is the role of labor unions in negotiating contracts with managements? | Collective bargaining |
| When companies are considered public utilities (for everyone to use) they are operated by | the government |
| What type of merger is it when firms are involved in different steps of manufacturing or marketing? | Vertical |
| Give an example of vertical merger | Pepsi, AOL Time-Warner |
| Costco, Sam's Club are what type of co-op? | Consumer's co-op |
| Credit Unions would be what kind of co-op | Service co-op |
| What is a small business called owned by two or more people? | partnership |
| A large corporation with at least four business, each making unrelated products, nor dependent on each other are known as | Conglomerates |
| When Mobile and Exxon joined to gether it was an example of a | Horizontal merger |
| When consumers join together to buy in bulk to lower prices it is known as ____________ | A cooperative |
| What is the job of the local Chamber of Commerce? | To promote the welfare of its members and the community |
| If a business fails and the owners lose everything is said they have what kind of partnership | A general partnership |
| When you lose everything in a general partnership it is because of ________ | unlimited liability |
| Manufacture goods neede to produce other goods and services are known as | Capital goods |
| Where do consumers spend their money to buy goods and services? | Markets |
| Non-profit organizations do not seek | financial gains for their members |
| Goods intended for individual use are known as | consumer goods |
| Actions in one part of the country or world that have and economic impact on what happens elsewhere demonstrates | economic interdependence |
| What shows the quantity consumer demand at each price? | Demand curve |
| How do you determine total revenue? | Multiply the price of a product by the quantity sold. |
| When the demand for a product is inversely related to its price is known as | The Law of Demand |
| One way to increase the popularity of a product is to ______________ | advertise |
| What do we call the study of the economic behavior of individuals and firms? | Microeconomics |
| If a change in price causes a change in demand we know the product shows | movement along the demand curve |
| When the use of one product increases the use of another product we say the products are | complementary goods |
| This shows that a different quantity is demanded at every price. | Movement along the demand curve |
| When the quantity demanded changes little, even with a relatively large price change we say that product has | inelastic demand |
| A change in consumer income changes the quantity demanded | Income effect |
| Demand is | the ability and willingness to buy the product |
| As a consumer, if the price of oranges double and your income stays the smae you would probably______________ | buy fewer apples, or find a substitute |
| If the price of apples decreases and consumers buy more it reflects __________ | a change in quantity demanded |
| The satisfaction enjoyed by eating one more piece of pizza is known as __________ | marginal utility |
| If consumer demand for peaches at $1.60 per pound and resulted in $2,000 in revenue for a company, the dropped to $1.00 and brough in $2500 in revenue, we can conclude _________ | demand is elastic |
| If a burger stand sold burgers at $3 each and you bought two, but next week you buy 3 for $6 we know that the burger is | unit elastic |
| What determines if a product is elastic? | Can the purchase be postponed? Is there a substitute? Does it take a large chunk of my salary? |
| We know an item is unit elastic if___________________ | the price changes but still produces the same revenue |
| Government's direct role in our economy is to | own and manage public utilities |
| When the quantity demanded changes little, even with a relatively large change in price we know that product is___________ | inelastic |
| If consumer's incomes go up, we can expect | an increase in demand |
| The statement "the demand for an economic product varies inversely with its price" is a definition of | the Law of Demand |
| When a business raises the price of an item and his total revenue goes down we know that the product is ________________ | elastic |
| When we buy Pepsi instead of Coke because the price of coke has gone up we have chosen_________ | a substitute |
| When the cost of flour goes up and there is a decrease in demand for bread_________ | the two goods are complements |
| When Macdonald lowers the price of its burgers it is counting on_________ | The law of Demand |
| When buying high ticket items, consiumers tend to be | more sensitive to price change |
| When consumers income goes down | They will buy less regardless of the price |
| The principle of diminishing marginal utility can be used to explain | the shape of the demand curve |
| What kind of effect is the change in the quantityu demanded due to a change in the relative price of the product | price effect |
| It consists of all revenue | Total receipts |
| Products used in place of other products are | substitutes |
| When the sale of film increases because cameras are selling well, it would be because they are____________ | compliments |
| A list that shows the quantity demanded at all prices | demand schedule |
| the reason a comsumer would buy less units of the same product because of_______________ | diminishing marginal utility |
| The law of variable proportions_________ | describe the relationship between input and output |
| The three stages of production are | increasing returns, diminishing returns, and negative returns |
| A government payment to help out certain industries | subsidies |
| The quantity supplied varies directly with the price | The Law of Supply |
| The sum of fixed and variable cost | Total cost |
| Rent, salaries, equipment leases | fixed costs |
| wages, electricity, inventory | variable cost |
| The extra cost by producing one additional unit of a product is called___________________ | marginal cost |
| Supply is based on | producers offereing products for sale |
| Demand is based on | consumer purchase |
| A factor that would cost the supply curve to shift to the right is | An increase in the number of sellers |
| If the price of Nike's shoes fall______________ | Nike will most likely supply less |
| Where is the profit-maximizing quantity of output found? | When total cost equals total revenue |
| Diminishing return is in what stage of production? | Second |
| When does production rise from workers? | When they are motivated |
| What do economist call the evaluation of extra costs and extra benefits of an action | marginal analysis |
| An extra output gained by adding one more worker is known as | marginal product |
| A basic decision for a supplier is | the amount to offer for sale at various prices. |
| What would be a factor which would cause the supply curve move to the right? | an increase in the number of sellers |
| Demand:cpnsumer purchase as to supply: | producers offering products for sale |
| What do we call the evaluation of extra cost and extra benefits of an action | marginaly analysis |
| First stage of production | increasing returns |
| Second stage of production | diminishing returns |
| Third stage of production | negative returns |
| The demand curbe is the mirror image of | the supply curve |
| The maximum legal price someone can charge is called_________ | price ceiling |
| the lowest legal wage is called a | price floor |
| Makes up the difference between market price and target price | deficiency payment |
| A ticket used to enable a purchase of a product | rationing coupon |
| The allocation of limited supplies is called | rationing |
| When the quantity supplied is greater than the quantity demanded you would have a _______ | surplus |
| What would happen to the price if you have a surplus | The price would go down |
| What do we call a set of assumptions used to describe or predict behaviour? | economic model |
| The price that clears the market. | Equilibrium price |
| prices are relatively stable and quantity supplied is equal to quantity demanded | market equilibrium |
| In a free market, prices are usually a result of | competition |
| Prices serves as a link between producers and___________ | consumers |
| How do people adjust to unexpected events in a market economy? | The producer will adjust his production, consumer will adjust his purchases |
| In a market economy, if prices go up it is an indication that________________ | producers will supply more and consumers buy less |
| An economic advantage in a free market is | that the market finds its own equilibrium |
| A negative aspect of rationing is_______ | it takes away the incentive for people to work |
| If Rite-Aid offers paper towels below cost it is an example of_____ | loss leader |
| Price flexibility works to resolve the problem of ________________ | surpluses and shortages |
| Best Buy returns part of the original payment on computer items to increase sales. This is known as a | Rebate |
| What dow economists mean when they say "market talks." | Prices move up or down significantly |
| In what type of economic system would government planners allocate resources? | Command economy |
| What is the name of the federal agency that is set up to stabilize farm prices? | CCC |
| What is the intersection of supply and demand called? | equilibrium |
| When the quantity demanded is greater than the supply it creates a _________ | shortage |
| What are some problems with rationing? | Fairness, high administrative costs, lack of incentive to work. |
| What does an economic model do? | It is a set of assumptions that can be stated algebraically, graphically, or listed in a table. used to analyze behavior, predict outcomes |
| What kind of tax is paid by donors? | Gift tax |
| Deductions directly take from your paycheck is called | payroll withholding |
| A tax to help pay for Social Security and Medicare | FICA |
| A tax charged on nearly evrything we buy | sales tax |
| A high tax on cigarettes and liquor. | sin tax |
| When higher incomes pay higher taxes it is a_________ | progressive tax |
