Economic Foundations

Question 1

Private Enterprise, also referred to as Free Enterprise, is also known as:

Accepted Answer

capitalism

Question 2

This is the welfare or state of being of the whole planet or between several countries.

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global economy

Question 3

The measure of the goods and services produced using labor and property located in a country.

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gross domestic product

Question 4

The low point of a recession just before recovery begins:

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trough

Question 5

Money, tools, and equipment needed for production of products or services.

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Capital Resources

Question 6

A well-located drive-through window adds value to a bank's services by providing:

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place utlitlity

Question 7

The largest consumer of goods and services in the United States is:

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the government

Question 8

Anything in its natural state – oil, natural gas, coal, trees.

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Land or Natural Resources

Question 9

The quantity of a product consumers are willing and able to buy at a given price:

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Demand

Question 10

The combination of unlimited needs and wants with limited resources results in:

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scarcity

Question 11

The ban against the export or import of certain products or trade with a particular country:

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embargo

Question 12

This refers to rising prices. A low rate (1-5 percent) shows that an economy is stable.

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inflation

Question 13

The condition of the country’s roads, ports, sanitation facilities, and utilities.

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infrastructure

Question 14

A tax placed on imported products to increase the price for which they are sold.

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tariff

Question 15

This occurs when nations become connected through freely moving imports and exports.

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globalization

Question 16

This is the difference between the amount of a country's imports and exports.

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balance of trade

Question 17

All economies must answer the 3 basic economic questions of:

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All of these are correct.

Question 18

The Market Price is found at the point where supply and demand curves meet.

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Equilibrium Point

Question 19

This is a period of prolonged and deep recession.

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depression

Question 20

Based on independent decisions by businesses and consumers with limited government regulation.

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private/freeenterprise economy

Question 21

This is the measure of output per worker hour:

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productivity

Question 22

The employees of the business.

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Labor or Human Resources

Question 23

The individual who takes the risk of owning and operating the business.

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Entrepreneurship

Question 24

What country is the second largest trading partner of the United States?

Accepted Answer

Canada

Question 25

This is a period of economic slowdown. Unemployment begins to rise.

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recession

Question 26

The government answers the three economic questions in a.

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controlled/command economy

Question 27

The price is increased, less is demanded. When the price is decreased, more will be demanded.

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Law of Demand

Question 28

This type of demand occurs when the demand for a product is NOT affected by changes in price.

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inelastic demand

Question 29

This is the rivalry between two or more businesses.

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competition

Question 30

Wrote a book called The Wealth of Nations in 1776 that advocated Capitalism:

Accepted Answer

Adam Smith

Question 31

The high point of an economic recovery:

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peak

Question 32

Created when a product or service is available where it is needed or wanted by consumers.

Accepted Answer

Place Utility

Question 33

The amount of satisfaction, or value, a consumer receives from product or service.

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utility

Question 34

People have unlimited wants and needs, but economic resources are limited, this results in:

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scarcity

Question 35

All economies in the world are really:

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mixed economies

Question 36

This is called the cost-of-living index, it measures the change in prices:

Accepted Answer

consumer price index

Question 37

When demand exceeds supply, this will occur:

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Shortage

Question 38

Created by changes in the form or shape of a product to make it useful.

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Form Utility

Question 39

The way a nation makes economic choices:

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economy

Question 40

This is a period of renewed economic growth following a recession or depression.

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recovery

Question 41

This is a period of economic growth and expansion.

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prosperity

Question 42

This situation occurs when supply exceeds demand:

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Surplus

Question 43

This occurs when products are made available when they are wanted by consumers.

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time utility

Question 44

Created when ownership of a good or service is transferred from one person to another.

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Possession Utility

Question 45

The quantity of a product that producers are willing and able to produce at a given price:

Accepted Answer

Supply

Question 46

This term refers to the constant changes and ups and downs in economic growth:

Accepted Answer

business cycles

Question 47

Which of the following countries is the best example of a Controlled or Command Economy?

Accepted Answer

North Korea

Economic Foundations

Questions 47

Economic Foundations

Questions 47