Glencoe Economics Principles and Practices : Vocabulary chapter 1 thru 3

Question 1

a check that transfers a portion of the corporate earnings to a stockholder

Accepted Answer

dividend

Question 2

incentive that encourages people and organizations to improve their material well-being

Accepted Answer

profit motive

Question 3

a firm legally ceases to exist when an owner dies, quits, or sells the business

Accepted Answer

limited life

Question 4

form of business organization recognized by law as a separate legal entity

Accepted Answer

corporation

Question 5

Which of the following is a for-profit business?

Accepted Answer

multinational

Question 6

economic system in which people act in their own best interests to answer economic questions

Accepted Answer

market economy

Question 7

Which of the following is an example of the government playing an indirect role in the economy?

Accepted Answer

public utility regulation.

Question 8

The study of economics is important because it enables us to

Accepted Answer

become better decision makers.

Question 9

The situation in which some products have little value while other have higher value

Accepted Answer

paradox of value.

Question 10

An example of a market economy is

Accepted Answer

the United States.

Question 11

business that is jointly owned by two or more persons

Accepted Answer

partnership

Question 12

Scarcity is defined as

Accepted Answer

Unlimited wants, but limited resources

Question 13

A popular model used to illustrate the concept of opportunity cost is

Accepted Answer

the production possibilities frontier.

Question 14

sum of those economic products that are tangible, scarce, useful, and transferable

Accepted Answer

wealth

Question 15

feature of capitalism that allows people to own and control their possessions

Accepted Answer

private property rights

Question 16

Division of labor is a characteristic of

Accepted Answer

assembly line production.

Question 17

the study of the economy as a whole. (BIG PICTURE)

Accepted Answer

Macroeconomics

Question 18

diagram representing various combinations of goods and/or services

Accepted Answer

production possibilities frontier

Question 19

Entrepreneurs are considered the driving force in an economy because they

Accepted Answer

start new businesses.

Question 20

The three basic economic concepts are WHAT to produce, HOW to produce, and

Accepted Answer

FOR WHOM to produce

Question 21

business that is owned and run by one person

Accepted Answer

proprietorship

Question 22

study of how people try to satisfy their needs through the careful use of scarce resources

Accepted Answer

economics

Question 23

economy in which competition is allowed to flourish with a minimum of government interference

Accepted Answer

free enterprise

Question 24

An advantage of a corporation is that

Accepted Answer

owners have limited liability for debt.

Question 25

economy in which people carry on economic affairs freely but are subject to some government

Accepted Answer

modified free enterprise economy

Question 26

The United States can best be described as having a

Accepted Answer

modified free enterprise system

Question 27

The dollar value of all final goods, services, produced within a country’s borders

Accepted Answer

Gross Domestic Product (GDP).

Question 28

a measure of the amount of goods and services produced with a given amount of resources

Accepted Answer

productivity

Question 29

economy in which consumers make the majority of the WHAT, HOW, and FOR WHOM decisions

Accepted Answer

free enterprise economy

Question 30

economic system in which private citizens own the factors of production

Accepted Answer

capitalism

Question 31

role of the consumer as ruler of the market

Accepted Answer

consumer sovereignty

Question 32

tools, equipment, machinery, and factories used in the production of goods and services

Accepted Answer

capital

Question 33

Which group ultimately determines the products that are produce

Accepted Answer

consumers

Question 34

economic system in which a central authority makes most of the WHAT, HOW, and FOR WHOM decision

Accepted Answer

command economy

Question 35

alternative choices made by consumers in the marketplace

Accepted Answer

trade-offs

Question 36

non-cash charge a firm takes for the general wear and tear on its capital goods

Accepted Answer

depreciation

Question 37

program that provides retirement and disability benefits for working people

Accepted Answer

Social Security

Question 38

study of how people try to satisfy their needs through the careful use of scarce resources

Accepted Answer

economics

Question 39

condition of not having enough resources to produce all the things people want

Accepted Answer

scarcity

Question 40

Manufactured goods needed to produce other goods and services are called

Accepted Answer

capital goods.

Question 41

which of the following is an example of Land

Accepted Answer

Solar energy

Question 42

The purpose of government in a command economy is to

Accepted Answer

make major economic decisions.

Glencoe Economics Principles and Practices : Vocabulary chapter 1 thru 3

Questions 42

Glencoe Economics Principles and Practices : Vocabulary chapter 1 thru 3

Questions 42