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68 Terms
1
what type of good is a truck used by a florist to deliver flowers?
capital
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2
group that favored a natural economy
physiocrats
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3
if gordon mcconnell's accounting business had expenses equaling $90k and revenues totaling $115k last year, but he could've had a salary of $80k working elsewhere, what was his opportunity cost?
$55,000
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4
states that when the price of a good falls, consumers tend to buy more of that good
income effect
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5
type of good that doesn't last more than three years
nondurable good
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6
type of good directly related to a consumer's income
normal good
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7
type of economic system controlled by a centralized authority
command
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8
type of economic system based upon custom, heredity, and caste
traditional
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9
to what does the free market economy owe its proficiency
property rights, limited government, freedom of enterprise
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10
group of firms that produce similar products or provide similar services
industry
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11
what is the retail clothing industry in a large city an example of?
monopolistic competition
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12
what is the american automobile industry an example of?
oligopoly
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13
which is a non pricing strategy?
advertising
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14
adam smith
invisible hand
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15
carl menger
diamond-water paradox
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16
e. i. du pont
gunpowder entrepreneur
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17
david ricardo
comparative advantage
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18
henry ford
mass production
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19
pierre samuel du pont
physiocracy
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20
study of the choices that individuals and societies make in the production, distribution, and consumption of goods
list of numbers that compares price with quantity demanded
demand schedule
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24
if firm a can produce 40 coats or 50 shoes with the same resources from which firm b can produce 45 coats or 65 shoes, which firm has the comparative advantage in coats?
firm a
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25
governmental agency that investigates trade practices
federal trade commission
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26
first act implemented in 1890 to regulate monopolistic trusts
sherman act
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27
antitrust act passed in 1914 that addressed practices not addressed in earlier laws
clayton act
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28
three things that mass production is based on
division of labor, standardized parts, automatic conveyance
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29
production of goods in which a country or region has absolute or comparative advantage
geographic specialization
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30
makes possible a better standard of living for everyone in a prosperous society
competition
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31
consumers send these to producers to let them know what goods are wanted at what price
market signals
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32
term that deals with the study of specific components within a major economy
microeconomics
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33
illegal system developed to avoid governmental regulations
black market
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34
exchange of goods in the absence of governmental restrictions or penalties
free trade
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35
tax on imported goods
tariff
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36
amount of satisfaction resulting from a one-unit increase of a product
marginal utility
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37
total amount invested in the production of a good
input
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38
total value of a business minus any liabilities
equity
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39
value of the best alternative that is foregone when a different alternative is taken
opportunity cost
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40
place at which quantity demanded and quantity supplied are equal
equilibrium
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41
forces the consumer to buy certain products before he is able to buy what he really wants
tying contract
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42
total amount of a good produced
output
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43
excess of the total revenue payday buyers for goods over the seller's total expense of producing those goods
profit
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44
total amount of satisfaction received from a particular amount of some good
total utility
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45
t/f one way to improve efficiency is to keep output constant and INCREASE input
false, decrease
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46
t/f when the demand for a good increases, the good's equilibrium price tends to INCREASE
true
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47
t/f if the supply of tennis rackets increased while the demand remained steady, stores would likely INCREASE the prices of rackets
false, decrease
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48
t/f the value of a good varies according to its utility and its SCARCITY
true
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49
t/f ABSOLUTE advantage is the ability of an entity to produce a good or provide a service at an opportunity cost that is lower than that of another producer
false, comparative
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50
t/f the TOTAL cost is the sum cost of all the factors of production used in making goods
true
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51
t/f a NATURAL monopoly occurs when a single firm can fill the demand for a good more efficiently
true
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52
t/f a SERVICE is a tangible item for which people will pay
false, good
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53
t/f a CONSUMER is an individual who provides goods
false, producer
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54
t/f SUPPLY is the relationship between a good's price and the amount that producers are willing to make available
true
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55
t/f PROFICIENCY is the quality of producing effectively with a minimum of waste
false, efficiency
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56
t/f the result of a price ceiling would be called a SHORTAGE
true
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57
t/f a failing business should continue production as long as total revenue exceeds VARIABLE costs
false, fixed
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58
t/f a decrease in the DEMAND for workers is caused by increased wages
true
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59
t/f a ppc bending INWARD signifies that two goods are best produced in moderation with each other
false, outward
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60
t/f a CONSERVATIVE economic philosophy seeks full employment over economic growth and stability
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