Econ Ch 1-2-3 Test Review: Econ Way of Thinking, Econ Systems, Free Enterprise

Buys goods/services for personal use

This economic system doesn't provide for everyone's basic needs. Supply and demand rule the day

When economic growth takes place, the ___ shifts outward, showing more products can be produced

The dollar value of all final goods and services produced in a country in 1 yr

Humans do things in oder to benefit themselves

In a market economy- who/what ULTIMATELY decides what products will be produced?

Efficiency

This includes land, labor, capital, and entrepreneurship

Public goods are funded by?

The purpose of government in a command economy is to do what?

What DRIVES a market economy?

Limited amount of resources to meet unlimited wants/needs

An example of a market economy is?

TINSTAAFL

Whichof the following is NOT considered an economic and social goal?

The money used to buy the tools and equipment needed for production is known as?

Who holds REAL power in a market economy?

Shows the combinations of output than can be produced when all resources are fully employed

a sustained increase in the general level of prices for goods and services. 

Wrote the Wealth of Nations

The gov't should have a hands off approach to economics.

Looking at the economy as a whole; for example analyzing GDP or inflation rates.

Marginal means?

Everyone is free to start a business in the US

Incentive to improve material well being by seeking to gain material $ well being

The study of economics is important because it enables us to do what?

The government's role in a MIXED economy is that it is the?

Mixed Economy or Modified Free Enterprise is?

The opportunity cost of doing something is the next best alternative, or ____ that you give up.

Wrote the Communist Manifesto

Act of buyers and sellers freely and willingly engaging in market transactions.

He believed the free market should be able to operate in all fields and that the gov should control the money supply.

The minimum wage is an example of a federal law that supports what economic principle?

describes the concept that everything we do has a cost.

On a PPC, if a point is INSIDE the curve, what is occurring?

What 2 markets do households and businesses interact with in the Circular Flow of Economics Model?

Typically had by older persons, this income does not change.