U1 Micro/Macro Quiz Review

In a Market Economy _____ decides who can afford what

3 basic economic questions include: (3 answers)

In a Command Economy, the ruling class is on the same economic level as the regular citizens

Examination of the additional costs/benefits of an economic act

Consumers receive_______ in exchange for resources provided to firms

Act as consumers in the Circular Flow Model

Pure Capitalism =

Good that is used to produce other goods

All of the following are directly involved in a Circular Flow Model EXCEPT

The activity of setting up a personal business with the goal of making a profit

Example of a NEED:

Level of use/satisfaction a consumer gets from a product

A product purchased by an individual that is meant to be consumed personally

Example of a WANT:

The United States is considered a ______ economy

An example of a command economy is:

The loss of one choice when another choice is made

Scarcity of economic resources is dealt with through Gov/Private Business

Command Economies are characterized by a surplus of private ownership

Choice made at the expense of another

In a Command Economy, scarcity is addressed through:

Microeconomics involves economic interactions between:

The value of a good or service depends on its scarcity and ____________

The Circular Flow of Economic Activity involves: (2 Answers)

Basic economic problem

Act as producers in the Circular Flow Model

Represents how goods, services, and money move through our economy

Items used to produce other goods and services are the factor of production known as