Introduction to Economics Unit 1

What is one of the most important advantages of a free market?

The right of a government to take private property for public use

Shared good or service it would be inefficient or impractical to exclude those who did not pay

The doctrine that government generally should not intervene in the marketplace

Which of the following might be a positive aspect of centrally planned economies?

The act of giving up one benefit in order to gain another, greater benefit

One externality of recycling would be

What is the government’s role in the American free enterprise system

The resources used to make all goods and services

An income level below that which is needed to support families

A situation in which older products and processes become out of date

Why are free market economies able to attain economic growth?

Why has congress passed public disclosure laws

A term used to describe the self-regulating nature of the marketplace

Education and experience lead to a growth in

The fact that limited amounts of goods and services are available to meet unlimited wants

How are patents and copyrights an incentive to innovation

Which of the following describes a centrally planned economy?

What does a circular flow model of a market economy show?

Schools, roads, police and firemen are examples of what type of goods

A graph that shows alternative ways to use an economy’s productive resources

Which of the following are factors of production

How does technological progress improve the economy

The incentive that drives individuals and business owners to improve their material well-being

The power of consumers to decide what gets produced

A pattern of a period of expansion, or growth, follow by a period of contraction, or decline

What is the difference between scarcity and shortage?

The total value of all final goods and services produced in a country in a given year

The most desirable alternative somebody gives up as the result of a decision

The study of how people seek to satisfy their needs and wants by making choices

Structure of methods and principles a society uses to produce and distribute goods and services

What does the government offer as an incentive for charitable giving

Which of the following is a summary of the three basic economic questions?

How can specialization benefit an economy

An economic side effect of a good or service that generates unintended benefits or costs

The economic concept of guns or butter means that

The physical capital used by a woodworker to make furniture would include

An efficient economy is one that

A general term that refers to government aid for the poor

A specific situation in which the free market does not distribute resources efficiently.