Unit 1 exam review Economics

a market is any place the sale and purchase of goods and services occurs

Scarcity forces us to Choose

What is equal is not always equitable and what is equitable is not always equal

the last true command economy is north korea

Incentives do not influence people's behavior

In the product market households buy products

GrossDomesticProduct-total value of all G&S made by a country in one year

repetition allows workers to work faster and produce more

In a bull market, investment is up and stock prices are rising

producers sell their final goods and services in the factor market

The last true command economy is

Privatization means the government purchases factories

when a monopoly exists there is lots of competition

A mortgage is designed to protect the lender from nonpayment by the buyer

The FED does not regulate the money supply or set interest rates

Money is used as a standard of value, store of value and medium of exchange

americans pay progressive taxes

a product's usefulness to a person is called its

insuring bank deposits is an example of the pursuit of the goal of economics

the impulse that encourages people to fulfill their needs and wants

traditional economies are found in

Socialism- when the government owns some of the factors of production

Households recive income from selling the factors of production

The FDIC was created to protects bank depositors from the effects of a depression

exchanging one set of goods for another

China has a true command Economy

In a bear market, investment is up and stock prices are rising

In a command economy the government decides how to answer the 3 basic questions

WHich is an asset

the production possibilities curves illustrates all possible combinations of production

In a mixed market economy the government does not play a role.

Traditional economies are found in densely populated easy to access areas

the only thing that separates the US economy from the pure market economy is

the four factors of production are- land, labor, capital and entreprenuership

Inflation causes the purchasing power of your money to increase

an example of a capital good is

Adam Smith is the father of capitalism

a products usefulness to a person is called its

If nothing changes it is impossible to produce beyond the PPF

opportunity cost is the value of the option not choosen