Unit 1 exam review

Households recive income from selling the factors of production

the impulse that encourages people to fulfill their needs and wants

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

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

In the product market households buy products

If nothing changes it is impossible to produce beyond the PPF

exchanging one set of goods for another

producers sell their final goods and services in the factor market

Privatization means the government purchases factories

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

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

a products usefulness to a person is called its

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

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

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

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

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

opportunity cost is the value of the option not choosen

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

an example of a capital good is

americans pay progressive taxes

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

the production possibilities curves illustrates all possible combinations of production

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

the last true command economy is north korea

The last true command economy is

Scarcity forces us to Choose

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

repetition allows workers to work faster and produce more

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

Traditional economies are found in densely populated easy to access areas

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

a product's usefulness to a person is called its

WHich is an asset

Adam Smith is the father of capitalism

when a monopoly exists there is lots of competition

Inflation causes the purchasing power of your money to increase

traditional economies are found in

Incentives do not influence people's behavior

China has a true command Economy