Final Exam Economics

What is Economics?

• The study of how people manage scarce resources

• The study of money

• The study of how money works

• The study of the stock market

A ____ economy is an economic system in which people, families, clans, or tribes produce and distribute goods according to customs.

• command

• market

• traditional

A ____ economy is an economic system in which the government plans and makes all economic decisions.

• traditional

• market

• command

A ____ economy is an economic system in which individual choice and voluntary exchange without government regulations direct economic decisions.

• traditional

• market

• command

Who is affected by the condition of scarcity?

• The rich

• Large economies

• All societies

• Producers (ie: businesses)

Why do all societies have to make decisions about how resources will be used?

• People are greedy

• There are not enough resources for those who want them

• Resources are too expensive for most people

• Because there is a huge gap between the rich and poor

Provides payments for both liability and property insurance on a vehicle

• disability insurance
• automobile insurance
• coverage
• deductible

A formal request to an insurance company asking for a payment when the policyholder has an acciden, illness or injury

• emergency savings
• coverage
• claim
• employee benefits

The risks covered and amount of money paid for losses under an insurance policy

• emergency savings
• beneficiary
• claim
• coverage

Provides payment to replace earnings during times when workers cannot work due to illness or injury

• disability insurance
• dependent
• emergency savings
• beneficiary