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Economics P.1 Flashcards | StudBud
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Economics P.1
Economics P.1
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Economics Basics & Circular Flow Model
Flashcards
19 cards
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Practice quiz
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Questions
19
Answers
1
In a free enterprise system, competition leads to the best product at the highest prices
True
False
2
What is not a characteristic of a Market Economy?
Requires a large bureaucracy
many basic services provided
high degree of consumer satisfaction
can adjust day-to-day changes
3
How does a corporation usually raise capital? (money)
They sell the product they make
They sell shares of its stock
They ask for donations
They have a BBQ plate sale
4
When speaking of the Four Factors of Production, "labor" means
risk takers in search of profit
people w/all their efforts, abilities and skills
very tiresome work
easy work
5
The basic idea of "choice" presents which problem in economics?
Businesses can sell what they want
Decisions produce costs
Choice is a way of life
People get to decide what they want
6
Scarcity
– the condition of unlimited wants and limited resources
True
False
7
Our RESOURCES are LIMITED, yet our Wants and Needs
opportunities
Limited
Unlimited
undefined
8
Land, Capital, Labor and Entrepreneurship are aka
Factors of Distinction
Factors of Business
Factors of Production
Factors of Concern
9
An example of a free market economic system is
Austrialia
Mozambique
China
Venezuela
10
Cuba has a command economy
True
False
11
Which is a characteristic of the US free enterprise system?
Having a college degree
ownership of private property
Affordable health care
Social Security
12
When David gets a job at the car wash,what is he doing?
buying his resource
buying his goods
selling his resource
selling his goods
13
Microeconomics is generally the study of
Individuals and business decisions
unlimited wants and limited resources
Country and gov't decisions
relationship of the scarcity of a service to its cost
14
Which is not a factor of production?
Capital
Labor
Investment
Land
15
The US free enterprise system creates the incentive to work, save and invest.
False
True
16
Responsive prices, creation of wealth & investment opportunities are examples of
Free socialist system
Free enterprise system
Free government benefits
Free expectation system
17
The following are benefits of free enterprise system, EXCEPT
investment opportunities
prices depend on supply and demand
absence of laws
buyers have freedoms to choose
18
I love entrepreneurship & believe that competition brings the best product & prices, who am I
Socialist Economy
Communist Economy
Free Enterprise Economy
Free benefits Economy
19
What is not a characteristic of a Command Economy?
Does not fluctuate much
requires a large bureaucracy
can adjust day-to-day changes
little incentive for quality work
