Econ Final Exam Ch 1 - 3

In free enterprise economies individuals must accept the consequences of their decisions.

In a free enterprise economy, Microsoft decides what goods they will produce for customers

Globalization leads to

Globalization has

Which of the following statements regarding the differences between goods and services is true?

Under free enterprise and socialism, government decision makers write an economic plan.

Government programs that protect people from economic hardship are called a

A command economy is one of the two major economic systems.

Which of the following is an example of making a decision at the margin?

A production possibilities frontier is a way of graphically representing the economic concept

Science that studies choices we make as we try to satisfy our wants in a world of scarcity.

The condition in which our wants are greater than the resources available to satisfy them is.

A market failure occurs when people who are not part of a marketplace interaction

With globalization, the world is moving toward

A public transfer payment happens when the government transfers income from

Offshoring refers to

The question of what goods will be produced must be answered because

Globalization is expanding everyone’s ability to potentially sell to more people.

Economists believe that people respond to

Positive externalities occur when one person's actions

Producers determine the allocation of scarce resources by seeking

The incentive to improve material well-being by seeking to gain from economic activities is called

Free enterprise economies r the only systems that must decide how 2 answer 3 economic questions

Produced goods that can be used as resources for further production are called

A situation in which more of one thing necessarily means less of something else.

Adam Smith and Karl Marx both state that capitalists improve the condition of workers.

Which of the following can not be attributed to Adam Smith’s beliefs?

Profit is the amount of money left over after all the costs of production have been paid.

The main components of a circular flow diagram are households, government and business.

Scarcity forces everyone to

The government can minimize the negative externalities in society through

When employers compete for workers, it often drives wages down.

The money left after production costs are subtracted from revenue is called

In socialism, government plays a large role in the economy.

Communism and socialism have similar characteristics.

In a socialist economic system, resources are owned and controlled by private individuals.

Excludable public goods r those that individuals can't be physically prohibited from consuming

Public goods are funded by

The first economic question every society has to answer concerns what goods to produce.

Which term do economists use a synonym for resources?

The government decides what goods will be produced in a free enterprise economy.

The government sell resources to businesses and business pay for those resources.

A mechanism used by economists to answer a question that has no obvious, easy answer.

Public education is an example of an activity that results in a positive externality.

The desire to earn money is a strong incentive for most people.

A trade-off is most closely related to which economic concept?

Which of the following is not a consequence of scarcity?

How a society answers the three economic questions defines

A ________ is anything that is used to produce goods or services.

A loss occurs any time total revenue is greater than total cost.

Profits and losses determine where resources will be used.

Free contract means that people can chose

Income distribution refers to

A person who does not pay for a service but benefits from it is called a(n)

Under free enterprise, individuals are free to compete with each other.

Communism would fall into the socialism category when classifying economic systems.

In a free enterprise economy the government decides what goods will be produced.

When something motivates a person to take action, economists refer to that something as

According to the economist's way of thinking, a person will do an activity only if

If you choose to study for your exam instead of going to a movie . The opportunity cost is

If there r more entrepreneurs in society there will likely b more choices of goods & services

Adam Smith believed

Which of the following is not one of the three economic questions?

On the circular flow diagram, tax dollars flow to the government from

In the marketplace, producers are looking to

The major differences between free enterprise and socialism include

In free enterprise economies, people who are willing & able to pay the price for goods get them

Two major economic systems are

Which of the following questions would be addressed by macroeconomics?

In a socialist economic system, the government

The circular flow diagram shows

Who faces trade-offs?

Which of the following is a private good?

Which of the following is not an economic resource?

An externality exists when

If a business raises their prices to increase revenue, but instead their revenue decreases.

If __________ did not exist, a rationing device would not be necessary.

In free enterprise less attention is paid to the income distribution than in a socialist system