Econ Final Review

Question 1

The system on which a free enterprise economy primarily relies to answer the three economic ?'s

Accepted Answer

price system

Question 2

A natural item, such as farmland, that is used to produce goods and services

Accepted Answer

natural resource

Question 3

The goal of economic stability has two concerns:

Accepted Answer

full employment and stable prices

Question 4

A products' demand elasticity is affected by

Accepted Answer

all of the above

Question 5

Economic efficiency is making the best use of

Accepted Answer

scarce resources

Question 6

Most financial institutions are protected by

Accepted Answer

state and federal deposit insurance

Question 7

May result from flexibility of the price system

Accepted Answer

instability

Question 8

Which of the following is a reason for saving money

Accepted Answer

all of the above

Question 9

A person who purchases goods and services

Accepted Answer

consumer

Question 10

The exchange or property ownership and payment between two individuals or groups is known as

Accepted Answer

financial investment

Question 11

Used as a standardized basis of exchange

Accepted Answer

money

Question 12

Market size can be affected by

Accepted Answer

all of the above

Question 13

Government regulation that establishes a maximum price for a particular good

Accepted Answer

price ceiling

Question 14

The circular flow model represents

Accepted Answer

the resources and products market

Question 15

Anything that is necessary for survival

Accepted Answer

need

Question 16

Which of the following can consumers in a free enterprise economy choose to do w/ their money

Accepted Answer

all of the above

Question 17

Which of the following is a non price determinant of demand

Accepted Answer

all of the above

Question 18

the sum of the fixed costs and the variable costs

Accepted Answer

total cost

Question 19

Which of the following is an example of a fixed expense

Accepted Answer

a monthly mortgage payment

Question 20

Which of the following is an advantage of credit cards?

Accepted Answer

It is a safe alternative to using cash

Question 21

When someone who does not produce or consume a product bears part of the cost of its production

Accepted Answer

negative externality

Question 22

Payment to the government to help fund government services

Accepted Answer

tax

Question 23

Anything people consume beyond what is necessary for survival

Accepted Answer

want

Question 24

A person who attempts to start a new business

Accepted Answer

entrepreneur

Question 25

Production costs that change as the output changes

Accepted Answer

variable cost

Question 26

Production costs that do not change as the level of output changes

Accepted Answer

fixed cost

Question 27

Which of the following terms refers to the amount of money consumers have available to spend?

Accepted Answer

purchasing power

Question 28

the total fixed costs of a company

Accepted Answer

overhead

Question 29

A person who supplies goods and services

Accepted Answer

producer

Question 30

A demand curve only displays a "snapshot" of a market because

Accepted Answer

it represents a specific time period

Question 31

A manufactured item, such as machinery, that is used to produce goods and services

Accepted Answer

capital resources

Question 32

Which of the following is a command economic system that operated in Western Europe

Accepted Answer

manorailism

Question 33

Situation in which each worker is assigned small number of task

Accepted Answer

division of labor

Question 34

Government regulation that establishes a minimum level for prices

Accepted Answer

price floor

Question 35

If a price increase causes a fall in total revenue, demand is

Accepted Answer

elastic

Question 36

Which direction will the demand curve shift if consumers incomes rise?

Accepted Answer

to the right

Question 37

All economies today are actually

Accepted Answer

mixed

Question 38

Exists when the quantity supplied is less than the quantity demanded

Accepted Answer

shortages

Question 39

When someone who does not produce or consume a product benefits from its production

Accepted Answer

positive externality

Question 40

Cuba's economy is an example of

Accepted Answer

authoritarian socialism

Question 41

Allows consumers to pay for an item over time

Accepted Answer

credit

Question 42

Economists measure savings to

Accepted Answer

determine the strength of the economy

Question 43

If substitutes are readily available for a product, it has

Accepted Answer

elastic demand

Question 44

The key motivation behind suppliers' behavior in providing goods to the marketplace

Accepted Answer

profit

Question 45

The system under which business can be conducted freely with little government intervention

Accepted Answer

free enterprise

Question 46

Limitations of the price system

Accepted Answer

market failures

Question 47

Which type of economy is closest to the pure market model?

Accepted Answer

Capitalism

Question 48

Which of the following is a disadvantage of using credit cards?

Accepted Answer

It is tempting to purchase goods you don't need

Question 49

All of the product a company makes in a given period of time

Accepted Answer

total product

Question 50

Which of the following is an example of a flexible expense

Accepted Answer

a trip to the skating ring

Question 51

An example of a time deposit is a

Accepted Answer

savings bond

Question 52

the costs of producing one more unit of output

Accepted Answer

marginal cost

Question 53

Which goal of the US economy is concerned with questions of fairness

Accepted Answer

economic equity

Question 54

Occurs when the quantity supplied and the quantity demanded for a product are = at the same $

Accepted Answer

market equilibrium

Question 55

If substitutes are not readily available for a product, it has

Accepted Answer

inelastic demand

Question 56

Payment of money or benefits by the government to private businesses

Accepted Answer

subsidy

Question 57

The change in output that occurs as a result of adding one more unit of input.

Accepted Answer

marginal product

Question 58

Exists when the quantity demanded is less than the quantity supplied

Accepted Answer

Surplus

Question 59

AS more units of a product are consumed, the satisfaction from consuming each additional unit

Accepted Answer

decreases

Question 60

Children are likely to carry on the economic roles of their parents in a

Accepted Answer

traditional economy

Econ Final Review

Questions 60

Econ Final Review

Questions 60