Review Economics Part I 2023

In an economy that incorporates concepts of "supply and demand" what is the correct term for the amount of each good or servicses available to consumers?

• consumer

• producer

• supply

• demand

Scarcity forces people to

• alternate wants and needs with unavailable resouces

• allow resources to dictate needs only

• choose which wants and needs to satisfy with available resources

What role is greater in a mixed economy than in a free market?

• Business

• Government

One characteristic of the United States economy is profit. Profit consists of

• earnings after all expenses have been paid

• Money earned before expenses are paid.

• services provided by businesses

Financial Institutions are all of the following EXCEPT

• Business firms

• Banks

• Savings and Loans

• Credit Unions

Financial institutions serves as an intermediary between

• drivers and insurance companies

• schools and students

• taxpayers and government

• savers and borrowers

People use various forms of money to

• discover what businesses are honest

• to protect themselves from robbers

• facilitate the exchange of goods and services

People accept coins and currency issued by the US Government in exchange for goods and services because they

• have no other type of money

• can no longer barter/trade

• have confidence in the US Government

• Refuse to use personal checks

What determines price in a market system?

• lack of competition

• government regulation

• supply and demand

• government intervention

Which type of business is authorized by law to act as a legal person, limits liability and may have stockholders?

• Propreitorship

• Partnership

• Corporation

• Entrepreanur