Unit 4 Economic Foundations

Question 1

This situation occurs when supply exceeds demand:

Accepted Answer

Surplus

Question 2

The quantity of a product consumers are willing and able to buy at a given price:

Accepted Answer

Demand

Question 3

Private Enterprise, also referred to as Free Enterprise, is also known as:

Accepted Answer

capitalism

Question 4

The quantity of a product that producers are willing and able to produce at a given price:

Accepted Answer

Supply

Question 5

The measure of the goods and services produced using labor and property located in a country.

Accepted Answer

gross domestic product

Question 6

This is the welfare or state of being of the whole planet or between several countries.

Accepted Answer

global economy

Question 7

The way a nation makes economic choices:

Accepted Answer

economy

Question 8

The ban against the export or import of certain products or trade with a particular country:

Accepted Answer

embargo

Question 9

The largest consumer of goods and services in the United States is:

Accepted Answer

the government

Question 10

Wrote a book called The Wealth of Nations in 1776 that advocated Capitalism:

Accepted Answer

Adam Smith

Question 11

Based on independent decisions by businesses and consumers with limited government regulation.

Accepted Answer

private/freeenterprise economy

Question 12

Money, tools, and equipment needed for production of products or services.

Accepted Answer

Capital Resources

Question 13

The combination of unlimited needs and wants with limited resources results in:

Accepted Answer

scarcity

Question 14

This refers to rising prices. A low rate (1-5 percent) shows that an economy is stable.

Accepted Answer

inflation

Question 15

Created when ownership of a good or service is transferred from one person to another.

Accepted Answer

Possession Utility

Question 16

The condition of the country’s roads, ports, sanitation facilities, and utilities.

Accepted Answer

infrastructure

Question 17

This is the difference between the amount of a country's imports and exports.

Accepted Answer

balance of trade

Question 18

This term refers to the constant changes and ups and downs in economic growth:

Accepted Answer

business cycles

Question 19

People have unlimited wants and needs, but economic resources are limited, this results in:

Accepted Answer

scarcity

Question 20

The government answers the three economic questions in a.

Accepted Answer

controlled/command economy

Question 21

The amount of satisfaction, or value, a consumer receives from product or service.

Accepted Answer

utility

Question 22

This is a period of prolonged and deep recession.

Accepted Answer

depression

Question 23

This is the rivalry between two or more businesses.

Accepted Answer

competition

Question 24

The price is increased, less is demanded. When the price is decreased, more will be demanded.

Accepted Answer

Law of Demand

Question 25

This occurs when products are made available when they are wanted by consumers.

Accepted Answer

time utility

Question 26

Anything in its natural state – oil, natural gas, coal, trees.

Accepted Answer

Land or Natural Resources

Question 27

The number one trading partner of the United States:

Accepted Answer

Canada

Question 28

This type of demand occurs when the demand for a product is NOT affected by changes in price.

Accepted Answer

inelastic demand

Question 29

A tax placed on imported products to increase the price for which they are sold.

Accepted Answer

tariff

Question 30

When demand exceeds supply, this will occur:

Accepted Answer

Shortage

Question 31

This is a period of economic slowdown. Unemployment begins to rise.

Accepted Answer

recession

Question 32

The employees of the business.

Accepted Answer

Labor or Human Resources

Question 33

The Market Price is found at the point where supply and demand curves meet.

Accepted Answer

Equilibrium Point

Question 34

All economies must answer the 3 basic economic questions of:

Accepted Answer

All of these are correct.

Question 35

Which of the following countries is the best example of a Controlled or Command Economy?

Accepted Answer

North Korea

Question 36

The high point of an economic recovery:

Accepted Answer

peak

Question 37

This is a period of economic growth and expansion.

Accepted Answer

prosperity

Question 38

Created when a product or service is available where it is needed or wanted by consumers.

Accepted Answer

Place Utility

Question 39

All economies in the world are really:

Accepted Answer

mixed economies

Question 40

The low point of a recession just before recovery begins:

Accepted Answer

trough

Question 41

This occurs when nations become connected through freely moving imports and exports.

Accepted Answer

globalization

Question 42

The individual who takes the risk of owning and operating the business.

Accepted Answer

Entrepreneurship

Question 43

This is a period of renewed economic growth following a recession or depression.

Accepted Answer

recovery

Question 44

A well-located drive-through window adds value to a bank's services by providing:

Accepted Answer

place utlitlity

Question 45

This is the measure of output per worker hour:

Accepted Answer

productivity

Question 46

Created by changes in the form or shape of a product to make it useful.

Accepted Answer

Form Utility

Question 47

This is called the cost-of-living index, it measures the change in prices:

Accepted Answer

consumer price index

Unit 4 Economic Foundations

Questions 47

Unit 4 Economic Foundations

Questions 47