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WorksheetsReview for Economics Exam
Total questions: 65
Worksheet time: 33mins
What is value?
worth that can be expressed in dollars and cents
study of how people try to satisfy their needs and wants through the use of limited resources.
condition of not having enough resources to produce all the things people want, it is also the basic economic problem.
cost of the next best alternative use of money, time or resources when one choice is made rather than another.
What is economics?
study of how people try to satisfy their needs and wants through the use of limited resources.
condition of not having enough resources to produce all the things people want, it is also the basic economic problem
cost of the next best alternative use of money, time or resources when one choice is made rather than another
alternative choices made by consumers in market place
What is scarcity?
condition of not having enough resources to produce all the things people want, it is also the basic economic problem.
cost of the next best alternative use of money, time or resources when one choice is made rather than another.
alternative choices made by consumers in market place.
quality of life based on the possession of necessities and luxuries that make life easier.
What is an opportunity cost?
cost of the next best alternative use of money, time and resources when one choice is made rather than another.
alternative choices made by consumers in market place
quality of life based on the possession of necessities and luxuries that make life easier
is a characteristic of assembly line production
What is a trade-off?
alternative choices made by consumers in market place
quality of life based on the possession of necessities and luxuries that make life easier.
is a characteristic of assembly line production.
to serve as a medium of exchange, measure of value, and a store of value
What is the Standard-of-living?
quality of life based on the possession of necessities and luxuries that make life easier
is a characteristic of assembly line production
to serve as a medium of exchange, measure of value, and a store of value
means of exchange that allows consumers to use an item before they have completely paid for it.
What is the Division of Labor?
is a characteristic of assembly line production
to serve as a medium of exchange, measure of value, and a store of value
means of exchange that allows consumers to use an item before they have completely paid for it
the ability to fulfill one's needs without assistance
What is the purpose of money?
to serve as a medium of exchange, measure of value, and a store of value
means of exchange that allows consumers to use an item before they have completely paid for it.
the ability to fulfill one's needs without assistance
anything people use to make or obtain what they need or want
What is credit?
means of exchange that allows consumers to use an item before they have completely paid for it
the ability to fulfill one's needs without assistance
anything people use to make or obtain what they need or want.
driving force that encourages people and organizations to improve their material well-being
What is self-sufficiency?
the ability to fulfill one's needs without assistance
anything people use to make or obtain what they need or want
driving force that encourages people and organizations to improve their material well-being
organized way in which a society provides for the wants and needs of its people
What is a resource?
anything people use to make or obtain what they need or want
driving force that encourages people and organizations to improve their material well-being
organized way in which a society provides for the wants and needs of its people
economic system in which people carry their affairs freely but are subject to some government intervention
What is profit motive?
driving force that encourages people and organizations to improve their well-being
organized way in which a society provides for the wants and needs of its people
economic system in which people carry on their affairs freely but are subject to some government intervention
market economy in which private citizens own the factors of production
What is an economic system?
organized way in which a society provides for the wants and needs of its people
economic system in which people carry on their affairs freely but are subject to some government intervention
market economy in which private citizens own the factors of production
economy in which a central authority makes most of the What, How and For Whom decisions
What is a mixed economy?
economic system in which people carry on their affairs freely but are subject to some government intervention.
market economy in which private citizens own the factors of production
economy in which a central authority makes most of the What, How and For Whom decisions
income that does not increase even if prices go up
What is capitalism?
market economy in which private citizens own the factors of production.
economy in which a central authority makes most of the What, How and For Whom decisions
income that does not increase even if the prices go up
actions in the one part of the country or world that have an economic impact on what happens elsewhere
What is command economy?
economy in which a central authority makes most of the What, How and For Whom decisions
income that does not increase even if prices go up
actions in one part of the country or world that have an economic impact on what happens elsewhere.
choose what to buy
What is fixed income?
income that does not increase even if prices go up
actions in one part of the country or world that have an economic impact on what happens elsewhere
choose what to buy
Food, clothing, and shelter
What is economic interdependence?
actions in one part of the country or world that have an economic impact on what happens elsewhere
choose what to buy
Food, clothing, and shelter
natural resources, capital resources, human resources, and entrepreneurship
What do consumers do?
choose what to buy
Food, clothing, and shelter
natural resources, capital resources, human resources, and entrepreneurship
to make major economic decisions
What are human needs?
Food, clothing, and shelter
natural resources, capital resources, human resources, and entrepreneurship
to make major economic decisions
ultimately determine the products that a free enterprise economy produces
What are factors of production?
natural resources, capital resources, human resources, and entrepreneurship
to make major economic decisions
ultimately determine the products that a free enterprise economy produces
a high degree of certainty for its workers
What is the purpose of government in a command economy?
to make major economic decisions
ultimately determine the products that a free enterprise economy produces
a high degree of certainty for its workers
plays the roles of protector, consumer, regulator and promoter of economic goals in the United States
What are consumers?
ultimately determine the products that a free enterprise economy produces
a high degree of certainty for its workers
plays the roles of protector, consumer, regulator and promoter of economic goals in the United States
amount of product that would be offered for sale at all possible prices
What does market economy offer?
a high degree of certainty for its workers
plays the roles of protector, consumer, regulator and promoter of economic goals in the United States
amount of a product that would be offered for sale at all possible prices
government payment to encourage or protect an economic activity
What is government?
plays the roles of protector, consumer, regulator and promoter of economic goals in the United States
amount of a product that would be offered for sale at all possible prices
government payment to encourage or protect an economic activity
cost that changes when the rate of operation or output changes
What is supply?
amount of a product that would be offered for sale at all possible prices
government payment that would be offered for sale at all possible prices
cost that changes when the rate of operation or output changes
products used in place of other products
What is subsidy?
government payment that would be offered for sale at all possible prices
cost that changes when the rate of operation or output changes
products used in place of other products
decline in extra satisfaction from using additional quantities of a product
What is variable costs?
cost that changes when the rate of operation or output changes
products used in place of other products
decline in extra satisfaction from using additional quantities of a product
desire, ability, and willingness to buy a product
What are substitutes?
products used in place of other products
decline in extra satisfaction from using additional quantities of a product
desire, ability, and willingness to buy a product
total output produced by a firm
What is diminishing marginal utility?
decline in extra satisfaction from using additional quantities of a product
desire, ability, and willingness to buy a product
total output produced by a firm
will cause demand curve to shift to the right
What is demand?
desire, ability, and willingness to buy a product
total output produced by a firm
will cause the demand curve to shift to the right
the quantity supplied varies directly with its prices
What is total product?
total output produced by a firm
will cause the demand curve to shift to the right
the quantity supplied varies directly with its price
increase returns, diminishing returns, and negative returns
An increase in demand...
will cause the demand curve to shift to the right
the quantity supplied varies directly with its price
increasing returns, diminishing returns, and negative returns
demand for fewer products.
What is law of supply?
the quantity supplied varies directly with its price
increasing returns, diminishing returns, and negative returns
demand for fewer products
consumers' willingness to replace a costly item with a less costly item
What are the three stages of production?
increasing returns, diminishing returns, and negative returns
demand for fewer products
consumers' willingness to replace aa costly item with a less costly item
elastic
Increased price results in?
demand for fewer products
consumers' willingness to replace aa costly item with a less costly item
elastic
maximum legal price that can be changed for a product
What is the substitution effect?
consumers' willingness to replace aa costly item with a less costly item
elastic
maximum legal price that can be charged for a product
quantity demanded is greater than quantity supplied
When a customer's need or a product is not urgent it tends to be
elastic
maximum legal price that can be charged for a product
quantity demanded is greater than quantity supplied
quantity supplied is greater than quantity demanded at a given price
What is price ceiling?
maximum legal price that can be charged for a product
quantity demanded is greater then quantity supplied
quantity supplied is greater than quantity demanded at a given price
price that produces neither a surplus nor a shortage
What is shortage?
quantity demanded is greater than quantity supplied
quantity supplied is greater than quantity demanded at a given price
price that produces neither a surplus nor a shortage
when the quantity supplied is greater than the quantity demanded
What is surplus?
Quantity supplied is greater than quantity demanded at a given price
Price that produces neither a surplus nor a shortage
Quantity supplied is greater than the quantity demanded
Theoretical situation in which well-informed, independent buyers and sellers exchange identical products
What us equilibrium price?
Price that produces neither a surplus nor shortage
Theoretical situation in which well-informed, independent buyers and sellers exchange identical products
Unintended side effect that either benefits or harms a third party not involved in the activity
Quantity supplied is greater than the quantity demanded
At a given price a surplus occurs when the...
Quantity supplied is greater than the quantity demanded
Theoretical situation in which well-informed, independent buyers exchange identical products
Unintended side effect that either benefits or harms a third party not involved in the activity
Legally formed combination of corporations or companies
What us perfect competition?
Theoretical situation in which well-informed, independent buyers and sellers exchange identical products
Unintended side effect that either benefits or harms a third party not involved in the activity
Legally formed combination of corporations or companies
Market situation in which costs are minimized because a single firm produces the product
What is externality?
Unintended side effect that either benefits or harms a third party not involved in the activity
Legally formed combination of corporations or companies
Market structure in which costs are minimized because a single firm produces the product
Market structure in which a few very larger sellers dominated the industry
What is a trust?
Legally formed combination of corporations or companies
Market situation in which costs are minimized because a single firm produces the product
Market structure in which a few very larger sellers dominated the industry
A monopoly based on the absence of other sellers in a certain location
What is a natural monopoly?
Market situation in which costs are minimized because a single firm produces the product
Market structure in which a few very larger sellers dominated the industry
A monopoly based on the absence of other sellers in a certain location
Economic product that is consumed collectively
What is oligopoly?
market structure in which a few very larger sellers dominated the industry
a monopoly based on the absence of other sellers in a certain location
economic product that is consumed collectively
their costs and benefits are reflected in the market prices paid buyers and sellers
What is geographic monopoly?
a monopoly based on the absence of other sellers in a certain location
economic product that is consumed collectively
their costs and benefits are not reflected in the market prices paid by buyers and sellers
first law that outlawed price discrimination
What is a public good?
economic product that is consumed collectively
their costs and benefits are not reflected in the market prices paid by buyers and sellers
first law that outlawed price discrimination
result in a firm wielding economic and political power
Positive and negative externalities are called market failures because
their costs and benefits are not reflected in the market prices paid by buyers and sellers
first law that outlawed price discrimination
result in a firm wielding economic and political power
most common type of business organization in the United States
What is the clayton antitrust act?
first law that outlawed price discrimination
result in a firm wielding economic and political power
most common type of business organization in the United States
unlimited liability, sole responsibility, limited growth potential and lack of longevity
A decrease in competition within an industry can
result in a firm wielding economic and political power
most common type of business organization in the United States
unlimited liability, sole responsibility, limited growth potential and lack of longevity.
business organization in which two or more people enjoy equal decision making authority
What is sole proprietorship?
most common type of business organization in the United States
unlimited liability, sole responsibility, limited potential and lack of longevity
business organization in which two or more people enjoy equal decision making authority
business structure that is legally distinct from its owners
The disadvantages of sole proprietorships include...
unlimited liability, sole responsibility, limited growth potential and lack of longevity
business organization in which two or more people enjoy equal decision making authority
business structure that is legally distinct from its owners
issuing stock
What is general partnership?
business organization in which two or more people enjoy equal decision making authority
business structure that is legally distinct from its owners
issuing stock
preferred stock
What is a corporation?
business structure that is legally distinct from its owners
issuing stock
preferred stock
increased efficiency
What is the most common way that corporations raise funds
issuing stock
preferred stock
increased efficiency
responsibility for debt
What is the corporate financial instrument that provides guaranteed dividends?
preferred stock
increased efficiency
responsibility for debt
profits paid to shareholders
What is a major advantage of corporate mergers?
increased efficiency
responsibility for debt
profits paid to shareholders
predetermined amount of money paid to a bondholder
What is liability?
responsibility for debt
profits paid to shareholders
predetermined amount of money paid to a bondholder
type of business that is owned collectively by its members
What are dividends?
profits paid to shareholders
predetermined amount of money paid to a bondholder
type of business that is owned collectively by its members
corporate financial instrument which pays interest
What is interest?
predetermined amount of money paid to a bondholder
type of business that is owned collectively by its members
corporate financial instrument which pays interest
worth that can be expressed in dollars and cents
What is corporative?
type of business that is owned collectively by its members
corporate financial instrument which pays interest
worth that can be expressed in dollars and cents
study of how people try to satisfy their needs and wants through the use of limited resources
What is corporate bond?
corporate financial instrument which pays interest
worth that can be expressed in dollars and cents
study of how people try to satisfy their needs and wants through the use of limited resources
condition of not having enough resources to produce all the things people want, it is also the basic economic problem.
