Economics Unit 1 Exam (Ch1-3)

sellers try to attract consumers with the best products at the lowest prices

• profit motive

• competition

• voluntary exchange

• economic freedom

this is the health insurance that retired people receive

• Medicaid

• Social Security

• Medicare

• Food Stamps

what is the purpose of a consumer's "dollar vote"?

• to directly fund government programs and public services

• to show businesses which products and services are most in demand.

• to create a fixed pricing system for goods and services.

• to redistribute wealth among different economic classes.

Maria loves baking and decides to sell her homemade cookies at a local farmers' market. Each cookie is priced at $2, which Maria believes is more valuable than keeping the cookies for herself. Alex, a customer, enjoys her cookies and values the cookie more than keeping his $2, so he buys the cookie.

• profit motive

• competition

• voluntary exchange

• consumer sovereignty

which of these is FALSE about the government in the US?

• the governments ensures fair competition in the marketplace

• the government provides many public services to people, such as education and police protection

• the government owns all the FOP and dictates production

• the government protects consumers from unsafe products

Match the following

• economic innovation

• the government provides some services, such as unemployment payments, to those suffering

• economic freedom

• you can buy or sell whatever you want, and work wherever you want

• economic equity

• the introduction of AI into businesses has improved output

• economic security

• there is a reasonable belief that goods and services will be available to future generations

• economic sustainability

• the US economy fairly compensates employees, with a minimum wage in place

Match the following

• full employment

• the unemployment rate is under 5%

• price stability

• the GDP (output of a nation) steadily rises over time

• economic growth

• companies make the best use of scarce resources to minimize cost and maximize revenue

• economic efficiency

• the inflation rate is steady

what term is synonymous with "the consumer is ruler"?

• voluntary exchange

• profit motive

• consumer sovereignty

• dollar vote

in which economic system are prices determined by competition in the marketplace?

• command

• mixed

• market

• socialistic

command economies prioritize...

market economies prioritize...

• efficiency

  equity

• equity

  efficiency

• centralization

  planning

• efficiency

  centralization