Economics Final Review

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Specialization is

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focusing on one product or service.

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Land, labor, capital, and entrepreneurs are the

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factors of production.

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One benefit of starting a corporation is...

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There is limited liability

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What does it mean to "live within your means"?

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spend what you make (or less)

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When is the best time to purchase stocks and mutual funds? Options: When the market is booming. Stocks are selling like crazy., When the market is falling. Almost no one is buying anything., When the market is steady. This means the economy is stable.

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When the market is falling. Almost no one is buying anything.

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If I am trying to sell a car and no one is interested in it, which would I do?

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Lower the price. The demand for the car indicates that this would be best.

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A government with no individual economic freedom in a country would have an economic system of: command, market, mixed

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command

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Which economy is associated with Adam Smith, Wealth of Nations, and Laissez-faire?

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market

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What is an example of something that government would control in a market economy? Options: industry, prices, pollution, resources

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pollution

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What is an example of a government service in a market economy?

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protecting private property