Econ Ch 1, 2, and 3 Final Review

_____________ Is the money left over after all of the costs of production are paid

An eighteenth century economist who provided the foundation for capitalism

The way income earned in a country and divided among different groups of earners is called

Something that encourages or motivates a person to take action

True or False?  Profits and losses are signals to business firms.

If ______ did not exist, a rationing device would not be needed

People who have a special talent for taking advantage of new business opportunities are called

Which of the following is the best example of a traditional economy?

An influential economic thinker who helped formulate the vision for socialism and communism

Starbucks raises prices to increase revenue, but instead ends up selling less coffee.  This is

Economy based on customs and beliefs that have been handed down from one generation to the next

A situation in which you can get more of one good by getting less of another.

Economics is divided into 2 branches that study

Free enterprise is also known as 

A graphic representation of all possible combinations of two goods an economy can produce 

What effect do laws, institutions, and regulations play in a free enterprise economy?

A(n) ___________ is something that encourages or motivates a person toward an action

Which of the following statements about entrepreneurs is not true?

Karl Marx believed that when capitalists pursued their self-interests, this led to

A thing we desire to have 

All nations must answer what question?

A ___________ is an agreement between two or more people to do something

work done for a company by people who live in a different country

A _____ is anything used to produce goods or services

Is national defense a public or a private good?

Which is NOT one of the five major features that define free enterprise?

What is the difference between private property and public property?

The price of a good times the number of units of the good sold equals

In a free enterprise economy, businesses will produce 

Compared with a free enterprise economy, in a socialist economy the government is more likely

An overall economic plan is a feature of _________ systems

Who faces trade-offs?

In a free enterprise economy, government plays _________ role in the economy

Is a library a public or private good?

Refers the the integration of economic activities across national borders

The science that studies the choices people make as they try to satisfy their wants 

The most highly valued opportunity or alternative forfeited when a choice is made

The condition where wants are greater than the resources available to satisfy those wants

Produced goods that can be used as resources for further production are called

If a product's total cost is greater than total revenue, the firm incurs a __________

Is a pizza a public or private good?

A good of which one person's consumption takes away from another person's consumption is called

A ________ is an economy with a mixture of capitalist and socialist elements

Which of the following is not a cost of globalization?

Which of the following is an example of making a decision at the margin?