Economics fall final

1. Define Economics 

1. What resources that are made by humans and used to create other goods and services are called?

capital

1. What are the resources used to make all goods and services called?

Factors of production

1.  What describes an efficient economy?

Utilizes its resources effectively to maximize output and minimize waste, operating to its full potential, and producing goods 

1. How do economists show the opportunity cost of a decision?  

By comparing benefits and costs of different alternatives

1.  What is the opportunity cost of a decision?

The value or benefit that you give up when you choose one option over another

1. By the end of summer, Jason had saved enough money for college from his job as a waiter.  He even had some money left over.  Although he wanted both, he decided to buy a DVD player rather than a digital camera.  What is the opportunity cost in this scenario?

   Digital camera

1. What is a factory building an example of?

Physical capital

1. How can technology increase a country's production possibilities? 

Improved efficiency, improved productivity, and increased innovation

1. WHat are the 3 key economic questions?

1. What goods and services should be produced

2.  How will it be produced

3. How will the output society produces be distributed

1. How could the Chinese economy be characterized?

Centrally planned economy mixed with socialism capitalism 

1. What is the purpose of a production possibility curve graph is to

Show alternative ways to use an economy’s resources

1. What does a Production possibilities frontiers curve show when they are charted on a graph?

The production possibilities of an economy when resources are maximized in production

1. According to the guns and butter example, if a country decides to spend more on military goods, what will happen?

They are spending more on defense and national security results in having to reduce spending on areas like consumer goods or social programs

1.  What does a production possibilities frontier represent?

The different cobs of goods or services that an economy can produce given its available resources and tech.

1. What are the most important advantages of a free market? List several!

Encourages comp,effiecency,flexibility allows ppl to choose what to produce, buy, and sell, economic growth, consumer choices

 In what kind of an economy does the government make all the decisions?

Centrally planned economy

1. How would the economy of Canada be likely to be characterized?

Mixed economy free market with some government intervention

1.  Why does the government use its powers to make sure that businesses disclose so much information to the public?

To make buyers more knowledgeable and safer ensure that buyers have access to accurate info that can help make an informed decision about what to buy and from whom

1. What effect does new technology usually have on an economy?

It makes the economy tronger and more effiecent,increased productivity, and inovation, economic growth, new job oppurtunites, improve the quality of goods and services

1. What is the term for the total value of all goods and services produced in a particular economy?

GDP gross domestic product

1. When the price of something increases, the quantity demanded does what?

decreases

1. On a demand curve, a shift along the curve, as opposed to a shift in the entire curve indicates what?

 A change in quanity demanded price of product changed which cuased people to buy more less

1.  What would economists consider a likely substitute for coffee? List a few!

tea

1. Lately, Ticketmaster was criticized for the way they sold Taylor Swift concert tickets.  Many people would have preferred to buy from someone else, but Ticketmaster was the only company selling tickets.  What kind of market structure is this?

Monopoly

1.  McDonald’s would be what type of market structure?

Oligopoly because oligopoly can only exist when a few firms are dominating the industry and have the ability to set prices. McDonald's cannot be considered as a Monopoly because it does not single sell a good which is unique.

1.  What is the central bank of the United States called?

The Federal reserve

The Federal Deposit Insurance Corporation (FDIC) was created to do what?

maintain stability and public confidence in the nation's financial system.

1. What type of things can cost you money in large interest payments? List a few!

Credit card debt,personal loans,and payday loans

1. What is the difference between a bank and a credit union?

banks are typically for-profit institutions while credit unions are not-for-profit and distribute their profits among their members.

1. List the advantages of sole proprietorship?

• Unlimited liability

• Simplified ownership

• Fewer business fees

• Complete ownership

1. Which businesses have limited liability?

Corporations

1. Lester lost his job due to the recession.  Why type of unemployment is it?

Cyclical unemployment

1. High levels of employment with low levels of inflation indicates that the business cycle has entered which stage in the chart above?

expansion

1. A recessionary period of the business cycle would include which characteristics?

Unemployment rise productivity lowers and inflation increases

What is the lowest point of a business cycle?

trough

1. Why was the Federal Reserve created?

To enhance the stability of the American banking system.

created by the Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system. 

1.  How many Federal Reserve Banks are there?

            

12

1. Why should a person be careful about using credit cards?

• Easy to overspend

• Easy to get into debt

1. What did gold back in the past?

Currency

1. Which telephone company was once a monopoly?

AT&T

1. What law was passed to defeat monopolies?

The sherman antitrust act

1. What is one of the most lasting legacies of the government’s role in economics (an agency or department)?

Legacy of the new deal