What is the relationship between scarcity and decision making in economics?
People must make choices on how to use scarce resources to satisfy wants.
Which of the following national fiscal policy actions would be the most effective way to increase personal income for retired workers?
Increase the FICA payroll tax funding Social Security
High levels of unemployment combined with high levels of inflation and a shrinking economy could indicate that the business cycle has entered into a period of?
We might be entering a Recession.
One of the benefits of the U.S. free enterprise system is the…? ( think variety of products available to consumers)
A large variety of choices for consumers.
What is the economic motive for implementing a progressive income tax? ( Think different levels of income)
In order to decrease the income differences in a society.
How do households earn income according to the circular flow model?
By providing labor resources to companies.
One result of competition in a free enterprise system is? (think a positive for consumers)
Lower prices for goods
When compared to the U.S. economy, the economy of China is characterized by a lack of? ( think government control/ownership of business)
Lack of choices and competition.
Be able to identify equilibrium price on a graph.
Where the Demand Curve and Supply Curve intersect.
What would cause the price of a sports magazine to decrease? ( think about something a competitor might do)
If the competition lowered their price or offered a free subscription.
Understand the law of demand and how an increase in price might effect it.
Consumers are less likely to pay or willing to pay.
Which of the following resources would fall under the factor of production called land?
Natural gas, water, oil, iron ore,coal
In a free market society, the answer to the question about how much to produce is determined by what?
Consumer Demand
Would an increase in productivity result in economic growth?
Yes
Review a chart and understand that Inflation Rates above 8% are considered high for a country.
Fact
Which of the following areas is one in which it is both a source of federal revenue and an expenditure? ( Income Tax; Defense Spending; Social Security: Net Interest)
Social Security
What type of tax is collected by state and local governments but not by the federal government?
Property Tax and Sales Tax
Which characteristic of the U.S. free enterprise system creates the incentive to work, save, and invest? (think about our ability to own land, homes, and our own businesses)
Our ability to owe private property and start own businesses.
The U.S free enterprise system is characterized by markets that respond to consumer demand.
Fact
Distribution of goods and services is a basic characteristic of all economic systems.
Fact
What might cause the demand curve to shift to the left? Would this be an increase or decrease in demand?
An incident that would cause consumers to buy less of the product.
How will quantity supplied and quantity demanded be affected by an increase in price($10) of a popular item?
Supply will increase and Demand will decrease.
Understand that opportunity cost is the product that you didn’t purchase when you decided to buy something else with a limited budget.
Fact
Which of the following would represent capital needed to start a tailoring or garment making business?
Weaving Machines and Sewing Machines
Decisions produce costs, this shows how choice presents a basic problem in Economics.
Fact
Knowt
Note
Studied by 20 people
