Economics Unit 1 Exam Review

Economics is best defined as the study of how societies deal with

The phrase, "the customer is always right," is most often associated with what term?

How many distinct factors of production do economists recognize?

The study of economics involves

The dollar value of all final goods, services, and structures produced in a country in a year is known as

The struggle among sellers to attract consumers by offering the best products at the lowest prices is known as

Who or what does the modification in a modified free enterprise economy?

Which of the following is largely responsible for the growth of a free enterprise system?

Societies are faced with which three basic questions about production of goods?

Which of these statements describes a disadvantage of a traditional economy?

What is one of the benefits related to economic equity?

Which of these helps explain why mixed economies develop?

In a transitioning economy, why would privatization tend to raise a ntion's overall standard of living.

Consumers can influence the production and sale of goods by

Which of these do economists use to illustrate combinations of output?

Inflation causes people to

What gives people and businesses the opportunity to make their own decisions?

One of the characteristics of a capitalist free enterprise economy is

Consumers waiting in a long line for a new product is an example of

What is the name of the federal health insurance program for senior citizens?

_______ protect consumers against harm from products on the market.

Which of the following helps determine something's value?

When using resources, you need to evaluate the costs and benefits of each choice to decide which meets your criteria

Markets in the free enterprise system are seldom regulated by

Paradox of value refers to the

Consumers are powerful because

Who ultimately determines the success of a product?

In American free enterprise capitalism, the profit motive can be best thought of as what?

A nation's wealth is determined by its

What country successfully rebuilt its economy after a war in the 1950s by opening its markets to world trade?

The four factors of production are land, labor, capital, and

The efficient use of scarce resources leads to an increase in

Opportunity cost refers to

When a nation's total output increases over time, the nation is experiencing

Who is said to have "sovereignty" over a free market?

Which of the following could raise the cost of production in a command economy?

Which of the statements best describes the communist ideal?

Which statement describes a disadvantage of a command economy?

Which of these is a major advantage of a market economy?

The three synonymous terms to describe the U.S. economic system are free enterprise, capitalism, and

Which of these economic systems have the least in common?

A general rise in the level of prices over time is known as

Which of these statements is descriptive of a market economy?

Consumers in a free enterprise economy ultimately determine _____ to produce.

What motivates people to work, save, and invest?

A state government builds a highway. This is an example of government fulfilling its role as what?

A car is an example of a