Economics Chapter 01

An economy in which the allocation of resources is determined by supply and demand is a

Sellers who fail to satisfy buyer's wants are "voted out of office" in which type of economy?

What is produced and how it is produced in a traditional economy is the result of

Currency that must be accepted in payment for debts is called

Whether a town should convert a parcel of land into a parking lot or a playground is a(n)

Metallic money became popular because it was durable and easy to carry.

Compared to the command system, government in a market economy plays

A firm's execs contemplating what would happen to sales if the company increased prices is a

Currency and checks each account for how much of the nation's money supply?

Which is not true about the barter system?

Soil, minerals, fish, and wildlife are all examples of

All forms of U.S. currency have value because the government says it does, and this is called

The study of the impact of changes on the economy as a whole is called

There are two kinds of U.S. currency:  coins and checks.

Human wants and the factors of production are both unlimited.

Economists create models to predict how a change in one variable will affect others.

All U.S. currency is legal tender that must be accepted in payment for debts.

Economic life in a market economy is characterized by a self-contained community.

Individuals who create new enterprises or improve existing ones are called

Entrepreneurs are the "idea people" who assume the risks necessary in starting a business.

Currency produced by the government for the convenience of making change is called

Who receives goods and services produced in a traditional society is based largely on

Money whose metallic value is far less than its face value is called

Orders written by financial institutions directing them to pay specified sums are called

The act of buying final goods and services is

As we use goods and services to satisfy our wants, we consume them.

Society must allocate its resources in such a way as to get the most for its money.

Haircuts, medical care, and education are all examples of

Intangible things that have value are

U.S. coins are token money, which means that

A person's career in a traditional economic system is largely determined by

Human resources are not necessary in order for goods and services to be produced.

The exchange of a good or service for another good or service is called

Questions such as "What will be the effect of a tax increase on consumer spending?" are

Mineral ores and fuels are examples of

In a traditional economy, production is carried out using

Scissors, medicines, and textbooks are all examples of

When one thing is given up in order to obtain something else, this is known as a(n)

A good economic model helps economists

Most of the world's people live and work in which type of economic system?

There are two types of money in the U.S.:  currency and checks.

The ingredients that go into the production of goods and services are

The people whose efforts and skills go into the production of goods and services are

The usefulness of adding one more item to the production of a product or service is called

People produce only enough goods to meet the needs of their families in a

Capital formation takes place when individuals and businesses set aside income and savings.

Resources that cannot be replaced or renewed are called

Trees, plants, and animals are all examples of

There is little incentive for entrepreneurs in a market economy to assume risk.

Which of the following is a function of money?

The quantity and quality of goods and services available to individuals and society is

The study of how people and societies use limited resources to satisfy their unlimited wants is

Which Latin term used by economists means "all other things remaining constant?"

The process of using up or wearing out machines is called

The accounting term used to measure the decine in the value of capital goods is

 Which is not one of the fundamental questions every society must answer?

Materials obtained from the land, sea, and air are called

The workforce size and labor productivity affect the amount of goods and services produced.

The amount each worker produces in a specified time is known as

Capital formation is an essential economic process in all societies.

The production of capital goods is called

During the Cold War, the Communist nations of Eastern Europe and the Soviet Union had

A market in which buyers and sellers in a market system make their wishes known is called a

Anything that is generally accepted as payment for goods and services is called

In a traditional economy, the main organizational unit of economic life is the

A Latin terms that means "all other things being equal" is

In the 1990s, most nations that had command economies adopted some form of market economy.

Something that is readily accepted in payment for goods and services is called

An economy in which decisions to allocate resources are made by the government is called a

The opposite of the centrally directed command economy is the decentralized

The trade-off of the value of one good or service for the value of another is called a(n)

To distribute resources in such a way as to get the most for society's money is to

Society's knowledge of production or production methods is called

A simplified way of looking at an economic problem is called a(n)

Resources that can be replaced or renewed are called

Entrepreneurship is a very safe business.

Business firms are always able to satisfy all their wants with the resources available.

Money issued by the federal government is called

An economy in which resources are allocated according to tradition and custom is called a

Who owns most of the industry in command economies?

Economists deal with

In a market system, the major decisions as to what, how, and who are made by the government.

Tangible items of value that we can see or touch are

The machines, tools, and buildings that we use to produce goods and services are called

The central authority decides who will receive the goods and services produced in a(n)

Professionals who study the ways society allocates its resources to satisfy its wants are called

New capital must be produced to replace capital that has been used up or worn out.

The number of workers in the workforce is more important than labor productivity.

Which type of resources are also referred to by economists as "labor" and "the workforce?"

Which of the following is not a factor of production?

People who buy goods and services for personal use are

Barter is much simpler than using money.

Which type of economy is located in rural areas of South America, Asia, and Africa?

Money that has value because the government says it does is called

The chief occupation in a traditional economy is usually manufacturing.

The process of bringing together the factors of production is known as

The first people to develop paper money were the

Economic models may be expressed in the form of a

The study of the effects of economic forces on individual parts of the economy is called

Some regions of the world have low standards of living because they have few natural resources.