In a free enterprise system_____

individuals may organize any lawful business

An economy with many entrepreneurs would probably

see the development of many new products and production methods

Which brief explanation of the goals of the US Economic System in NOT correct?

Trade Stability=Maintaining trade w/nations promoting US economic interests

Which brief explanation of the goals of the US Economic System in NOT correct?

Full Employment = that everyone has a job

promotes economic growth ( is good for the economy)

In a market economy, proces provide information. This means that prices...

usually tell businesses about the values consumers put on various products

When resources are privately owned,

people have incentive to use them carefully and productively

What resources flow from households to the resource market?

Capital, Labor, Entrepreneurship, Land

Which brief explanation of the goals of the US Economic System in NOT correct?

Full Employment = that everyone has a job

Most busineses earn their profits by

selling what consumers want to buy at prices they are willing to pay

The circular flow model shows all of the following except:

businesses selling resources to households

A command economy is one in which:

Govt has total control over what, how, for whom goods/ services are made

studbud

CH2 econ Review

30 termsStudBud Administration16 plays

Imported from external platform

Flashcards30 cardsFPractice quizPHost liveL

Questions 30

Answers

1
A simplified representation or map of an economy.
Medium of exchange
Model
Circular flow
Price system
2
In a free enterprise system_____
individuals may organize any lawful business
workers do not charge for their labor
good are so plentiful that they are free
everyone has the right to vote in elections
3
An economy with many entrepreneurs would probably
see the development of many new products and production methods
experience little change
grow rapidly by avoiding innovation (new ideas)
have a slower-moving circular flow than an economy with few entrepreneurs
4
Ownership of a good or resource
Economic growth
Resource market
Profit
Property right
5
Provides signals for what will be produced
Model
Price system
Medium of exchange
Circular flow
6
Which brief explanation of the goals of the US Economic System in NOT correct?
Economic Growth = US increases the output of goods and services
Trade Stability=Maintaining trade w/nations promoting US economic interests
Economic Equity = should offer all citizens equal economic opportunities
Price Stability=prices of goods/services & resources do NOT fluctuate alot
7
Which brief explanation of the goals of the US Economic System in NOT correct?
Economic Freedom = belief we have freedom to choose job & how to spend $
Full Employment = that everyone has a job
Efficiency=getting max output from resources used to produce goods/services
Economic Security = basic needs of every person should be met
8
Entrepreneurship
promotes economic growth ( is good for the economy)
keeps businesses producing the same goods and services year after year
usually is discouraged by a free enterprise system
contributes little to our economy
9
Competition can take many forms, but there would be no competition at all without_____
money
markets
businesses
scarcity
10
The circular flow is a simplified picture of our economy which
None of the above
a person buys a milk shake at an ice-cream store
Both of the above
someone uses a mail-order catalog, phone or credit card to buy clothing
11
Where you exchange labor for money to spend on goods and services
Resource markets
Price system
Model
Medium of exchange
12
In a market economy, proces provide information. This means that prices...
usually tell businesses about the values consumers put on various products
clearly identify prodcuts that aren't scarce
often let housholds prodcutsbusinesses want to buy
tell the government which products it should allow businesses to produce
13
When resources are privately owned,
people typically ignore the opportunity cost & benefits of using resources
it is impossible to exchange resources without using money
people have incentive to use them carefully and productively
none of the above
14
Money remaining after deducting costs from sales
Economic growth
Price system
Circular flow
Profit
15
Those who buy goods and services
Producers
Free Markets
Entrepreneurs
Consumers
16
Businesses work as a team to provide bread & peanut butter. Businesses do this in our economy as they are guided by
the stock market
government
voluntary exchange
the banking system
17
Rivalry among businesses for the consumer's dollar
Profit
Medium of exchange
Price system
Competition
18
Increased production of good and services
Competition
Economic growth
Circular flow
Profit
19
What resources flow from households to the resource market?
Capital
Labor
Entrepreneurship
Land
20
Which is not one of the 6 pillars of Free Enterprise?
Enterpreneurship
Market Competition
Government Regulation
Specialization
21
Which brief explanation of the goals of the US Economic System in NOT correct?
Full Employment = that everyone has a job
Efficiency=getting max output from resources used to produce goods/services
Economic Freedom = belief we have freedom to choose job & how to spend $
Economic Security = basic needs of every person should be met
22
Throughout history, peple have used money mainly because
none of the above
governments have required it
it is impossible to exchange without using money
without money, there would be no scarcity
23
The functions of money are all of the following EXCEPT:
A Medium of Exchange
a Means to Barter
a Measure of Value
a Store of Value
24
The movement of money, products and resources between households and businesses
Price system
Model
Medium of exchange
Circular flow
25
Most busineses earn their profits by
charging exorbitant (excessive) prices
competing successfully against consumers
ignoring consumers' preferences
selling what consumers want to buy at prices they are willing to pay
26
The circular flow model shows all of the following except:
people earning money by exchanging their factors of production w/businesses
consumers earnng income by helping produce goods and services
businesses selling resources to households
households exchanging w/businesses in product markets & resource markets
27
A command economy is one in which:
Producers can decide what, how and for whom goods and services are made
Govt has total control over what, how, for whom goods/ services are made
Consumers and producers decide what, how and for whom good/service are made
Consumers are allowed to buy any goods they desire
28
In resource markets, businesses compete against____
private owners of resources
one another
households
no one
29
Which is not one of the 6 pillars of Free Enterprise?
Private Property
Foreign Trade
Price System
Voluntary Exchange
30
A function of money that enable people to make exchanges more easily with one another
Price system
Circular flow
Medium of exchange
Competition

CH2 econ Review Flashcards | StudBud

CH2 econ Review

30 termsStudBud Administration16 plays

Imported from external platform

Flashcards30 cardsFPractice quizPHost liveL

Questions 30

Answers

1
A simplified representation or map of an economy.
Medium of exchange
Model
Circular flow
Price system
2
In a free enterprise system_____
individuals may organize any lawful business
workers do not charge for their labor
good are so plentiful that they are free
everyone has the right to vote in elections
3
An economy with many entrepreneurs would probably
see the development of many new products and production methods
experience little change
grow rapidly by avoiding innovation (new ideas)
have a slower-moving circular flow than an economy with few entrepreneurs
4
Ownership of a good or resource
Economic growth
Resource market
Profit
Property right
5
Provides signals for what will be produced
Model
Price system
Medium of exchange
Circular flow
6
Which brief explanation of the goals of the US Economic System in NOT correct?
Economic Growth = US increases the output of goods and services
Trade Stability=Maintaining trade w/nations promoting US economic interests
Economic Equity = should offer all citizens equal economic opportunities
Price Stability=prices of goods/services & resources do NOT fluctuate alot
7
Which brief explanation of the goals of the US Economic System in NOT correct?
Economic Freedom = belief we have freedom to choose job & how to spend $
Full Employment = that everyone has a job
Efficiency=getting max output from resources used to produce goods/services
Economic Security = basic needs of every person should be met
8
Entrepreneurship
promotes economic growth ( is good for the economy)
keeps businesses producing the same goods and services year after year
usually is discouraged by a free enterprise system
contributes little to our economy
9
Competition can take many forms, but there would be no competition at all without_____
money
markets
businesses
scarcity
10
The circular flow is a simplified picture of our economy which
None of the above
a person buys a milk shake at an ice-cream store
Both of the above
someone uses a mail-order catalog, phone or credit card to buy clothing
11
Where you exchange labor for money to spend on goods and services
Resource markets
Price system
Model
Medium of exchange
12
In a market economy, proces provide information. This means that prices...
usually tell businesses about the values consumers put on various products
clearly identify prodcuts that aren't scarce
often let housholds prodcutsbusinesses want to buy
tell the government which products it should allow businesses to produce
13
When resources are privately owned,
people typically ignore the opportunity cost & benefits of using resources
it is impossible to exchange resources without using money
people have incentive to use them carefully and productively
none of the above
14
Money remaining after deducting costs from sales
Economic growth
Price system
Circular flow
Profit
15
Those who buy goods and services
Producers
Free Markets
Entrepreneurs
Consumers
16
Businesses work as a team to provide bread & peanut butter. Businesses do this in our economy as they are guided by
the stock market
government
voluntary exchange
the banking system
17
Rivalry among businesses for the consumer's dollar
Profit
Medium of exchange
Price system
Competition
18
Increased production of good and services
Competition
Economic growth
Circular flow
Profit
19
What resources flow from households to the resource market?
Capital
Labor
Entrepreneurship
Land
20
Which is not one of the 6 pillars of Free Enterprise?
Enterpreneurship
Market Competition
Government Regulation
Specialization
21
Which brief explanation of the goals of the US Economic System in NOT correct?
Full Employment = that everyone has a job
Efficiency=getting max output from resources used to produce goods/services
Economic Freedom = belief we have freedom to choose job & how to spend $
Economic Security = basic needs of every person should be met
22
Throughout history, peple have used money mainly because
none of the above
governments have required it
it is impossible to exchange without using money
without money, there would be no scarcity
23
The functions of money are all of the following EXCEPT:
A Medium of Exchange
a Means to Barter
a Measure of Value
a Store of Value
24
The movement of money, products and resources between households and businesses
Price system
Model
Medium of exchange
Circular flow
25
Most busineses earn their profits by
charging exorbitant (excessive) prices
competing successfully against consumers
ignoring consumers' preferences
selling what consumers want to buy at prices they are willing to pay
26
The circular flow model shows all of the following except:
people earning money by exchanging their factors of production w/businesses
consumers earnng income by helping produce goods and services
businesses selling resources to households
households exchanging w/businesses in product markets & resource markets
27
A command economy is one in which:
Producers can decide what, how and for whom goods and services are made
Govt has total control over what, how, for whom goods/ services are made
Consumers and producers decide what, how and for whom good/service are made
Consumers are allowed to buy any goods they desire
28
In resource markets, businesses compete against____
private owners of resources
one another
households
no one
29
Which is not one of the 6 pillars of Free Enterprise?
Private Property
Foreign Trade
Price System
Voluntary Exchange
30
A function of money that enable people to make exchanges more easily with one another
Price system
Circular flow
Medium of exchange
Competition