Review: Economics and Choice - Econ Test #1

An economic system that includes some government protections, provisions, and regulations.

What are the key features of a free enterprise economy?

_____ is the money left over after the costs of producing a good or service is subtracted from the revenue gained.

Economic Trade-off is often referred to as?

A government payment that helps cover the cost of economic activity is _______

Government programs to protect people from economic hardship.

An advantage of a command economy is ___________.

A free enterprise economy limits intervention from __________

The most basic principles of economics are that:

What is one of the influences on consumer purchase behavior?

________ is the tension between infinite wants and finite resources.

You have 2 hours to either visit the bookstore or go see a movie. Opportunity cost of watching a movie is equivalent to:

What is the price at which demand and supply are equal?

What is one example of a product that would normally require extensive decision-making?

Which factor of production does management fall under?

Economics is the study of ________________ & ________________

______ is a person who chooses not to pay for a good or service but who benefits from it when it is provided.

What two factors contribute to scarcity?

Two countries that are examples of where a command economy exists are _________ & ________.

___________ is defined as starting new businesses, or getting involved with new ventures or ideas.

This means that businesses are motivated by profit & competition, to meet the needs of the consumer.

ALL of the following are good reasons for the government to intervene in the economy EXCEPT: