Module 3: Basics of Economics Review

An individual's own personal gain is

One of the world's truest free markets is

Any arrangement that allows buyers and sellers to exchange things is called a

Type of government that limits individuals freedoms and wants strict obedience from citizens

The best example of a centrally planned economy is

The name for the condition of not being able to have all the goods and services one wants?

Standard of living is defined as

Set of government programs that protect people from unfavorable economic conditions

Societies must answer the three economic questions because of

A period of change in which a nation moves from one economic system to an another

Property owned by individuals or companies, not the government or people as a whole

Government program that protects people from unfavorable economic conditions

The hope of reward or fear of penalty that influences a person's behavior is

Which of the following is an example of human capital?

Name the 3 economic questions

What type of incentive is it where governments increase tax on gasoline?

The United States is a mixed economy whose foundation is based on socialism.

Doctrine that government generally should not intervene in the marketplace

The economic and political systems that believe wealth should be distributed evenly to all

A shortage is different than scarcity because:

What type of incentive is one where governments offers tax breaks to certain businesses?

Anything that people use to make things or do work are known as

What is the economic definition on Capital?

Entrepreneurs are willing to take__________ and are good at recognizing ________________.

Will go away over time.

Term used by Adam Smith to describe the self-regulating nature of the marketplace

Traditional economies are usually

Opportunity cost is the _________ of the the ______________ of the forgone alternative.

Socialists argue that economic equity can only exist if power is control by the government.

Economic system that believes that government should not intervene in the market place

Economic system that believes that government should not intervene in the market place

One of the three economic questions is

The type of economic system based on the voluntary exchange in markets

Specialization is

Adam Smith believes self-interest and competition work against each other to regulate a market

The economic system that relies on habit, custom, or ritual

In economics, Choice occurs because

Exists regardless of price

Process of selling businesses or services operated by the government to individual investors

What is added into the circular flow model to show how the US Economy really works?

An economic system where decisions are by made in a free market rather than by state control

Another name for a centrally planned economy

The process of bringing new methods, products, or ideas into use is called

Societies with traditional economies

A market-based economic system in which the government is involved to some extent

No matter how well planned, every decision has:

The principles that a society uses to produce and distribute goods and service is their

The political system where the government controls all economic systems