Unit 10 Test Review - Ms. Ard

A model that compares the marginal costs and marginal benefits of a decision

Concentrating on goods and services that can be produced most efficiently.

In which system are economic decisions made based upon price?

The act of buyers and sellers freely and willingly engaging in market transactions.

The increase in expenses caused by producing an additional unit of something.

The cost of the next best use of time or money when choosing to do one thing or another.

Economic questions are answered on the basis of habit or custom.

The price set for a good or service in the marketplace, where demand and supply are perfectly balanced.

Quality of life based on the possession of necessities and luxuries.

A shortage causes the price to rise.

What are the three economic questions all societies must answer?

Which of the following is an example of a natural resource?

A nation’s way of producing things its people want and need.

Increase in a country’s total output of goods and services over time.

The supply of the good or service available is less than the demand for it.

Not having enough resources to satisfy all one’s wants.

Payment to mow the family lawn is included in the GDP.

In economics, demand means all of the people who want a certain good or service.

A market where productive resources are bought and sold.

Which economic system does the United State have?

Who makes most of the economic decisions in the United States?

The money a business receives for its products or services over and above its costs is called

The incentive that drives the U.S. economy is the ___________.

The study of how people use limited resources to satisfy unlimited wants.

A market where goods and services are for sale.

The money a business receives from selling its good or services.

Breaking down a job into separate, smaller tasks that are done by different workers.

Desires individuals and nations have that can be met by getting a good or a service.

Individuals and businesses own all resources used to produce goods and services.

Adam Smith argued that the best way for society to advance was for

In the United States, prices are established primarily through

When private citizens own and decide how to use the factors of production in order to make money, this is known as

A market economy that has elements of command and tradition.

GDP measures the amount produced within a country as well as a nation’s

Which sector uses both taxes and borrowing to operate?

Laissez-faire economics is the belief that government should not interfere in the marketplace.

In a command economy, prices act as signals to both consumers and producers.

Measure of how efficiently resources are used to create products.

GDP reflects the price of ____________________ produced in a country during a single year.

The sum of people’s knowledge and skills that can be used to create products.

The additional income received from each increase of one unit of sales.

The amount of a good or service that producers are willing and able to sell over a range of prices is called

Risk-taking person who starts a new business, introduces a new product, or improves a management technique.

Which of the following provides a service rather than a good?

An expense that does not change no matter how much a business produces.

Thing that is used to make goods or services.

Resources are unlimited.

A model showing how goods, services, and money flow among sectors and markets in the American economy

The alternative you face when you decide to do one thing rather than another.

Scarcity is the basic economic problem because

An expense that changes depending on how much a business produces.

The combination of all fixed and variable costs.

Which of the following directly causes a change in demand?

Why is GDP per capita a better measure than GDP when comparing the economic activity of countries?

In a free enterprise system, individuals & groups have the freedom to start businesses w/ little government interference

Government makes the major economic decisions.

Which type of resource is a factory building?

The amount of a good or service supplied by producers is greater than the amount demanded by consumers.

Which of these is an example of a fixed cost?

The lost income from not taking a shift at work is an opportunity cost of studying for a test.