The Public Sector is?

Part of the economy that involves gov. spending

Standard of Living is?

When the economy grows to provide more jobs and higher wages

The Poverty Line is what?

Minimum income needed to support a family

Costs that stay the same when producing a good

Compliment goods are?

Goods that are bought and used together

Amount of goods people are willing to buy

Free Market economy is what?

Individual chooses what, when, where & how to produce a good

Not buying a product because of its rising price

The gap between limited resources & unlimited wants

Raising prices of essential goods during a disaster

What is an Excise Tax?

Tax placed on production of goods deemed "harmful"

The total value of all goods produced in a country each year

Law of Demand is what?

When the price of a good is lower, people buy more of it

When the gov. makes a payment to support a business

What is a Free Rider?

Someone who use a public good but doesn't contribute to it

In Economics, Security is what?

Ensuring payment and the availability of goods

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Econ Unit 1 Test Review

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Review of Unit 1 of Macroeconomics

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Questions 30

Answers

1
Producers offer more of a good or service when the price increases is?
Quantity Demanded
Law of Demand
Law of Supply
Quantity Supplied
2
The Public Sector is?
Public goods and services provided to a society
How much gov. spends on public goods and services
Part of the economy that involves gov. spending
Money spent on public goods and services
3
Standard of Living is?
When the economy grows to provide more jobs and higher wages
The amount of money you earn each year
How much it costs to provide for a family
The amount of people living above the poverty line
4
The Poverty Line is what?
Minimum income needed to support a family
The percentage of states in poverty
The amount of people living in poverty
The amount of debt that puts you into poverty
5
Fixed Cost is what?
Costs that stay the same when producing a good
Costs that change when producing a good
Cost that stays the same one year but changes the next
Cost that is based on a set amount of goods produced
6
Compliment goods are?
Two different goods that cost the same
Goods that are bought separately but used together
Goods that are not ever used together
Goods that are bought and used together
7
Which is not a factor of production?
Capital
Land
Labor
Economics
8
Quantity Demand is?
Demand for a public good
Amount of goods a producer is willing to sell
Amount of goods demanded by the public
Amount of goods people are willing to buy
9
Free Market economy is what?
Mix of freedom and government regulation
Individual chooses what, when, where & how to produce a good
The oldest and simplest economic form
The gov. controls the means of productions and owns all land
10
Income Effect is?
Buying more of a product because the price is lower
Not buying a product because of its rising price
Buying more of a product because your income has increased
Not buying a product because your income has decreased
11
Knowledge and Skills a person obtains is?
Human Capital
Skill Capital
Physical Capital
Knowledge Capital
12
What is Scarcity?
Not enough resources to produce the desired amount of goods
The gap between limited resources & unlimited wants
When there is the absence of choices of goods
The difference between producer and consumer
13
What is it called when there is growth in the Business Cycle?
Growth
Expansion
Magnification
Extension
14
Price Gouging is?
Raising the price of a good gradually over time
Lowering the price of a good gradually over time
Slashing the price of a good dramatically
Raising prices of essential goods during a disaster
15
What is an Excise Tax?
Tax placed on producers breaking labor laws
Tax on a luxury good
Tax placed on production of goods deemed "harmful"
Tax placed on certain class of people
16
When the government owns all means of production and all the land, what type of economy is this
Centrally Planned
Free Market
Mixed
Traditional
17
GDP is what?
The total value of all public goods
The total value of goods produced by a country's residents
The total value of all goods produced in a country each year
The total value of all goods own by consumers
18
Lowest point of the business cycle is?
Peak
Contraction
Expansion
Trough
19
Law of Demand is what?
When the price of a good is higher, people buy less of it
The amount of goods a producer is willing and able to sell
The amount of goods people are willing to buy
When the price of a good is lower, people buy more of it
20
What is the growth and shrinking of the economy known as?
The Great Depression
The Economic Cycle
Economics
The Business Cycle
21
Human made objects used to create goods or services is?
Worker Capital
Labor Capital
Physical Capital
Human Capital
22
When a public good is depleted or destroyed due to overuse it is known as what?
Tragedy of the Commons
Destruction of the Commons
Resource Abuse
Over-utilization of Resources
23
How much of a product a producer is willing and able to sell at a set price is?
Law of Demand
Law of Supply
Quantity Demanded
Quantity Supplied
24
Contraction in the business cycle is?
Shrinkage
Growth
Trough
Peak
25
Subsidy is what?
When the public pays a special tax on a good
When the gov. helps support the public
When producers have to subsidize their products
When the gov. makes a payment to support a business
26
A good you wouldn't buy if you could afford something more is an?
Normal good
Complement good
Inferior good
Substitute good
27
What is a Free Rider?
A person who steals goods
When a person uses a service free of charge
Someone who use a public good but doesn't contribute to it
When a good is provided for free
28
In Economics, Security is what?
Ensuring payment and the availability of goods
Ensuring producers and consumers choice in their goods
Ensuring the best possible use of resources
Ensuring economic fairness for all
29
Deciding how much of a good to produce is?
Thinking at the Margin
Factors of Production
Production Design
30
The total value of all products produced by a country's residents worldwide each year is?
GDP
GNP
GPD
GND

Econ Unit 1 Test Review Flashcards | StudBud