Unit 10 Test Review - Ms. Ard

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

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

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

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

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

A market where productive resources are bought and sold.

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

Measure of how efficiently resources are used to create products.

The combination of all fixed and variable costs.

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

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

Thing that is used to make goods or services.

Government makes the major economic decisions.

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

Which of the following directly causes a change in demand?

In which system are economic decisions made based upon price?

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

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

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

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

A market economy that has elements of command and tradition.

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

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

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

In the United States, prices are established primarily through

A shortage causes the price to rise.

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

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

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

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

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

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

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

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

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

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

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

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

Scarcity is the basic economic problem because

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

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

Which economic system does the United State have?

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

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

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

Resources are unlimited.

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

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

Which of these is an example of a fixed cost?

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

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

Which sector uses both taxes and borrowing to operate?

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

Which type of resource is a factory building?

What are the three economic questions all societies must answer?

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

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

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

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

A market where goods and services are for sale.