Module 3: Basics of Economics Review

The economic system that relies on habit, custom, or ritual

One of the world's truest free markets is

One of the three economic questions is

A market-based economic system in which the government is involved to some extent

The hope of reward or fear of penalty that influences a person's behavior is

An economic system where decisions are by made in a free market rather than by state control

Entrepreneurs are willing to take__________ and are good at recognizing ________________.

Name the 3 economic questions

Economic system that believes that government should not intervene in the market place

The type of economic system based on the voluntary exchange in markets

Societies must answer the three economic questions because of

Traditional economies are usually

The principles that a society uses to produce and distribute goods and service is their

Another name for a centrally planned economy

What type of incentive is one where governments offers tax breaks to certain businesses?

The United States is a mixed economy whose foundation is based on socialism.

Opportunity cost is the _________ of the the ______________ of the forgone alternative.

Socialists argue that economic equity can only exist if power is control by the government.

Government program that protects people from unfavorable economic conditions

Set of government programs that protect people from unfavorable economic conditions

The process of bringing new methods, products, or ideas into use is called

Adam Smith believes self-interest and competition work against each other to regulate a market

What type of incentive is it where governments increase tax on gasoline?

The name for the condition of not being able to have all the goods and services one wants?

Anything that people use to make things or do work are known as

Will go away over time.

An individual's own personal gain is

Doctrine that government generally should not intervene in the marketplace

Economic system that believes that government should not intervene in the market place

In economics, Choice occurs because

Exists regardless of price

A shortage is different than scarcity because:

What is the economic definition on Capital?

No matter how well planned, every decision has:

The political system where the government controls all economic systems

Specialization is

Property owned by individuals or companies, not the government or people as a whole

What is added into the circular flow model to show how the US Economy really works?

A period of change in which a nation moves from one economic system to an another

The best example of a centrally planned economy is

Any arrangement that allows buyers and sellers to exchange things is called a

Standard of living is defined as

Societies with traditional economies

Type of government that limits individuals freedoms and wants strict obedience from citizens

Process of selling businesses or services operated by the government to individual investors

Term used by Adam Smith to describe the self-regulating nature of the marketplace

The economic and political systems that believe wealth should be distributed evenly to all

Which of the following is an example of human capital?