Economics Chapter 01

The amount each worker produces in a specified time is known as

Capital formation is an essential economic process in all societies.

People who buy goods and services for personal use are

The quantity and quality of goods and services available to individuals and society is

Human resources are not necessary in order for goods and services to be produced.

To distribute resources in such a way as to get the most for society's money is to

Scissors, medicines, and textbooks are all examples of

Money whose metallic value is far less than its face value is called

The central authority decides who will receive the goods and services produced in a(n)

The accounting term used to measure the decine in the value of capital goods is

The process of bringing together the factors of production is known as

Whether a town should convert a parcel of land into a parking lot or a playground is a(n)

Metallic money became popular because it was durable and easy to carry.

Society's knowledge of production or production methods is called

Mineral ores and fuels are examples of

In the 1990s, most nations that had command economies adopted some form of market economy.

A person's career in a traditional economic system is largely determined by

When one thing is given up in order to obtain something else, this is known as a(n)

Who owns most of the industry in command economies?

 Which is not one of the fundamental questions every society must answer?

Which of the following is a function of money?

New capital must be produced to replace capital that has been used up or worn out.

Human wants and the factors of production are both unlimited.

Materials obtained from the land, sea, and air are called

There is little incentive for entrepreneurs in a market economy to assume risk.

People produce only enough goods to meet the needs of their families in a

Capital formation takes place when individuals and businesses set aside income and savings.

The number of workers in the workforce is more important than labor productivity.

The study of the impact of changes on the economy as a whole is called

Resources that cannot be replaced or renewed are called

All U.S. currency is legal tender that must be accepted in payment for debts.

Currency that must be accepted in payment for debts is called

The process of using up or wearing out machines is called

Some regions of the world have low standards of living because they have few natural resources.

Questions such as "What will be the effect of a tax increase on consumer spending?" are

Which is not true about the barter system?

The ingredients that go into the production of goods and services are

Money issued by the federal government is called

A simplified way of looking at an economic problem is called a(n)

There are two kinds of U.S. currency:  coins and checks.

Orders written by financial institutions directing them to pay specified sums are called

Entrepreneurs are the "idea people" who assume the risks necessary in starting a business.

An economy in which decisions to allocate resources are made by the government is called a

Economists create models to predict how a change in one variable will affect others.

In a traditional economy, the main organizational unit of economic life is the

Who receives goods and services produced in a traditional society is based largely on

An economy in which the allocation of resources is determined by supply and demand is a

Sellers who fail to satisfy buyer's wants are "voted out of office" in which type of economy?

All forms of U.S. currency have value because the government says it does, and this is called

A firm's execs contemplating what would happen to sales if the company increased prices is a

Intangible things that have value are

Which Latin term used by economists means "all other things remaining constant?"

The first people to develop paper money were the

In a market system, the major decisions as to what, how, and who are made by the government.

The machines, tools, and buildings that we use to produce goods and services are called

Society must allocate its resources in such a way as to get the most for its money.

Barter is much simpler than using money.

A market in which buyers and sellers in a market system make their wishes known is called a

U.S. coins are token money, which means that

The study of the effects of economic forces on individual parts of the economy is called

Trees, plants, and animals are all examples of

Tangible items of value that we can see or touch are

Currency and checks each account for how much of the nation's money supply?

A Latin terms that means "all other things being equal" is

As we use goods and services to satisfy our wants, we consume them.

Compared to the command system, government in a market economy plays

Business firms are always able to satisfy all their wants with the resources available.

During the Cold War, the Communist nations of Eastern Europe and the Soviet Union had

The act of buying final goods and services is

The exchange of a good or service for another good or service is called

Which type of economy is located in rural areas of South America, Asia, and Africa?

In a traditional economy, production is carried out using

The opposite of the centrally directed command economy is the decentralized

Something that is readily accepted in payment for goods and services is called

The trade-off of the value of one good or service for the value of another is called a(n)

Money that has value because the government says it does is called

What is produced and how it is produced in a traditional economy is the result of

The chief occupation in a traditional economy is usually manufacturing.

The study of how people and societies use limited resources to satisfy their unlimited wants is

Economists deal with

Individuals who create new enterprises or improve existing ones are called

Most of the world's people live and work in which type of economic system?

Currency produced by the government for the convenience of making change is called

Economic life in a market economy is characterized by a self-contained community.

Resources that can be replaced or renewed are called

Anything that is generally accepted as payment for goods and services is called

Haircuts, medical care, and education are all examples of

There are two types of money in the U.S.:  currency and checks.

The people whose efforts and skills go into the production of goods and services are

Which type of resources are also referred to by economists as "labor" and "the workforce?"

Entrepreneurship is a very safe business.

A good economic model helps economists

Professionals who study the ways society allocates its resources to satisfy its wants are called

The workforce size and labor productivity affect the amount of goods and services produced.

The usefulness of adding one more item to the production of a product or service is called

Economic models may be expressed in the form of a

The production of capital goods is called

Which of the following is not a factor of production?

Soil, minerals, fish, and wildlife are all examples of

An economy in which resources are allocated according to tradition and custom is called a