Economics Review Fall 2013

Economics Review Who wrote “The Wealth of Nations” ? Who wrote “The Wealth of Nations” ?

Economics Review Adam Smith Adam Smith

Economics Review Under modified capitalism in the United States, which of the following is done by the government? {Could be more than one} Under modified capitalism in the United States, which of the following is done by the government? {Could be more than one} Enforcer of laws and contracts Enforcer of laws and contracts Maintainer of competition Maintainer of competition Distributor of resources Distributor of resources Protector of workers and consumers Protector of workers and consumers Corrector of market failures Corrector of market failures Provider of goods and services Provider of goods and services Stabilizer of the economy Stabilizer of the economy Regulator of businesses Regulator of businesses

Economics Review Enforcer of laws and contracts Enforcer of laws and contracts Maintainer of competition Maintainer of competition Protector of workers and consumers Protector of workers and consumers Corrector of market failures Corrector of market failures Provider of goods and services Provider of goods and services Stabilizer of the economy Stabilizer of the economy Regulator of businesses Regulator of businesses

Economics Review A business that is owned and managed by one person is a (an) ____________. A business that is owned and managed by one person is a (an) ____________.

Economics Review Sole Proprietorship Sole Proprietorship

Economics Review When the market is dominated by a few large, profitable firms, it is called ____. When the market is dominated by a few large, profitable firms, it is called ____.

Economics Review Oligopoly Oligopoly

Economics Review A person cannot be required to join a union as a condition of getting or keeping a job if there are ________________ Laws A person cannot be required to join a union as a condition of getting or keeping a job if there are ________________ Laws

Economics Review Right to Work Laws Right to Work Laws

Economics Review If you are denied credit, you have the right to – If you are denied credit, you have the right to – see your credit files (report) see your credit files (report) get a credit card get a credit card fill out a credit application fill out a credit application throw a fit throw a fit

Economics Review see your credit files (report) see your credit files (report)

Economics Review What are the phases of the business cycle? What are the phases of the business cycle?

Economics Review Expansion Expansion Contraction Contraction Peak Peak Trough Trough

Economics Review Concentrating on producing what a country can do best and importing other goods is defined as – Concentrating on producing what a country can do best and importing other goods is defined as –

Economics Review specialization specialization

Economics Review The price at which currency is bought and sold is known as – The price at which currency is bought and sold is known as –

Economics Review exchange rate exchange rate

Economics Review What is an association that operates to benefit a cause or charity? What is an association that operates to benefit a cause or charity?

Economics Review Non-profit Organization Non-profit Organization

Economics Review Would any of the following be an advantage to a franchise? Would any of the following be an advantage to a franchise? National product recognition National product recognition If the business goes bankrupt, the owner owes nothing. If the business goes bankrupt, the owner owes nothing. No one can sue the store. No one can sue the store. profits are tax free. profits are tax free.

Economics Review National product recognition. National product recognition.

Economics Review In which business organization would the owner have total liability and receive all of the profits? In which business organization would the owner have total liability and receive all of the profits?

Economics Review Sole Proprietorship Sole Proprietorship

Economics Review At which point (s) along the PPF can this society produce efficiently? At which point (s) along the PPF can this society produce efficiently?

Economics Review Points A and B Points A and B

Economics Review At which point along the PPF does the society under produce? At which point along the PPF does the society under produce?

Economics Review Point D Point D What could cause this? What could cause this?

Economics Review Can this society produce at Point C Can this society produce at Point C along the PPF Curve? How? How?

Economics Review By adding new technology or resources in an economy By adding new technology or resources in an economy

Economics Review What business organization has the most regulations and is difficult to start up? What business organization has the most regulations and is difficult to start up?

Economics Review Corporation Corporation

Economics Review What kind of government aid is provided to retired and disabled workers as well as their survivors? What kind of government aid is provided to retired and disabled workers as well as their survivors?

Economics Review Social Security Social Security

Economics Review What is the largest source of tax income for the federal government? What is the largest source of tax income for the federal government?

Economics Review Personal Income tax Personal Income tax

Economics Review What are the economic goals of the United States? What are the economic goals of the United States?

Economics Review Economic Equity Economic Equity Economic Growth Economic Growth Economic Freedom Economic Freedom Economic Security Economic Security Price Stability Price Stability

Economics Review A shortage (on a Supply and Demand Graph) will cause the price to _______. A shortage (on a Supply and Demand Graph) will cause the price to _______.

Economics Review Rise Rise

Economics Review A surplus on the PPF curve will cause the price to ______. A surplus on the PPF curve will cause the price to ______.

Economics Review Fall Fall

Economics Review Would any of following generalizations be true based on the information learned in the class? Would any of following generalizations be true based on the information learned in the class? Countries with low literacy rates have a high per capita G.D.P. Countries with low literacy rates have a high per capita G.D.P. People tend to live longer lives in developing nations. People tend to live longer lives in developing nations. Countries with a high per capita G.D.P. tend to have high literacy rates. Countries with a high per capita G.D.P. tend to have high literacy rates. In nations with a high per capita G.D.P., people usually have a short life expectancy. In nations with a high per capita G.D.P., people usually have a short life expectancy.

Economics Review Countries with a high per capita G.D.P. tend to have high literacy rates. Countries with a high per capita G.D.P. tend to have high literacy rates.

Economics Review The main reason that some US businesses moved their factories to other countries in the 1900s was ____________. The main reason that some US businesses moved their factories to other countries in the 1900s was ____________.

Economics Review cheaper wages cheaper wages

Economics Review What is NAFTA? What is its purpose? What is NAFTA? What is its purpose?

Economics Review North American Free Trade Agreement North American Free Trade Agreement Removal of trade restrictions among United States, Canada, and Mexico and stimulation of economic growth Removal of trade restrictions among United States, Canada, and Mexico and stimulation of economic growth

Economics Review Which are the ways to increase productivity?

Economics Review More capital goods per worker More capital goods per worker New and better technology New and better technology Better allocation of resources Better allocation of resources

Economics Review What are the fundamental economic questions? What are the fundamental economic questions?

Economics Review Who consumes goods and services? Who consumes goods and services? How should goods and services be produced? How should goods and services be produced? What goods and services should be produced? What goods and services should be produced?

Economics Review What are the characteristics of Capitalism? What are the characteristics of Capitalism?

Economics Review Economic Freedom Economic Freedom Private Property Private Property Voluntary Exchange Voluntary Exchange

Economics Review If supply exceeds demand there is (a/an) __________. If supply exceeds demand there is (a/an) __________.

Economics Review Surplus Surplus

Economics Review If demand exceeds supply there is (a/an) _________. If demand exceeds supply there is (a/an) _________.

Economics Review Shortage Shortage

Economics Review When the business and owners are legally separated so that the owners aren’t responsible for the debts of the business, you have _____________. When the business and owners are legally separated so that the owners aren’t responsible for the debts of the business, you have _____________.

Economics Review limited liability limited liability

Economics Review Issued by state and local governments, they pay a lower rate of interest but are tax-free. Issued by state and local governments, they pay a lower rate of interest but are tax-free. Treasury Notes Treasury Notes Penny Stock Penny Stock Municipal Bonds aka “Munis” Municipal Bonds aka “Munis” Preferred Stock Preferred Stock Common Stock Common Stock

Economics Review Municipal Bonds aka “Munis” Municipal Bonds aka “Munis”

Economics Review What is the amount of interest charged to member banks when they get a temporary loans by the Federal Reserve? What is the amount of interest charged to member banks when they get a temporary loans by the Federal Reserve?

Economics Review Discount Rate Discount Rate

Economics Review What is the dollar value of all final goods and services produced within a country’s borders in a year? What is the dollar value of all final goods and services produced within a country’s borders in a year?

Economics Review Gross Domestic Product - GDP Gross Domestic Product - GDP

Economics Review What insurance covers your vehicle for anything other than collision, such as theft, broken glass, water, and etc.? What insurance covers your vehicle for anything other than collision, such as theft, broken glass, water, and etc.?

Economics Review Comprehensive Comprehensive

Economics Review If Country A can produce tractors at a lower cost than Country B. Country A has a (n) _____ Advantage. If Country A can produce tractors at a lower cost than Country B. Country A has a (n) _____ Advantage.

Economics Review Absolute Advantage Absolute Advantage

Economics Review What was Bill Gates’ goal for his company? What was Bill Gates’ goal for his company? form a Utopia form a Utopia have a computer on every desk and in every home, all running his software have a computer on every desk and in every home, all running his software create a new system based on no taxation without political representation create a new system based on no taxation without political representation allow customers to have it there way while encouraging competition allow customers to have it there way while encouraging competition

Economics Review have a computer on every desk and in every home, all running his software have a computer on every desk and in every home, all running his software

Economics Review Which of the following are true concerning a corporation? Which of the following are true concerning a corporation? stockholders own the company stockholders own the company the owners receive dividends the owners receive dividends the owners are liable the owners are liable policies are set by a board of directors policies are set by a board of directors

Economics Review stockholders own the company stockholders own the company the owners receive dividends the owners receive dividends policies are set by a board of directors policies are set by a board of directors

Economics Review Which business organization can the company be owned by outside investors to increase capital availability? Which business organization can the company be owned by outside investors to increase capital availability?

Economics Review Corporation Corporation

Given the above table and graph, what is the equilibrium price and quantity? Economics Review

$3.00 and 7,000

Economics Review What would happen to Equilibrium Price and Quantity if the demand curve remains unchanged and the supply curve shifts to the right?

Economics Review quantity would increase and the price would decrease quantity would increase and the price would decrease

Economics Review What would happen to Equilibrium Price and Quantity if the supply curve remains unchanged and the demand curve shifts to the left? What would happen to Equilibrium Price and Quantity if the supply curve remains unchanged and the demand curve shifts to the left?

Economics Review quantity would decrease and the price would decrease quantity would decrease and the price would decrease

Economics Review What would happen to the supply of oranges if there was a freeze in Northern Florida that destroyed 40% of the orange crop? What would happen to the supply of oranges if there was a freeze in Northern Florida that destroyed 40% of the orange crop?

Economics Review it would decrease it would decrease

Economics Review What would happen to Equilibrium Price and Quantity if the demand curve shifts to the left and the supply curve shifts to the left? What would happen to Equilibrium Price and Quantity if the demand curve shifts to the left and the supply curve shifts to the left?

Economics Review price would remain unchanged or decrease and quantity would decrease price would remain unchanged or decrease and quantity would decrease

Economics Review What would happen to Equilibrium Price and Quantity if the demand curve shifts to the right and the supply curve shifts to the right? What would happen to Equilibrium Price and Quantity if the demand curve shifts to the right and the supply curve shifts to the right?

Economics Review price would remain unchanged or go up and quantity would increase price would remain unchanged or go up and quantity would increase

Economics Review What does the FDIC do?

Economics Review Insures deposits in bank accounts Insures deposits in bank accounts

Economics Review Which business organizations are decisions shared by the few owners? Which business organizations are decisions shared by the few owners?

Economics Review Partnership Partnership

Economics Review What is fiscal policy?

Economics Review Using government taxation & spending to make adjustments to the economy Using government taxation & spending to make adjustments to the economy

Economics Review What is Scarcity?

Economics Review It means that there are limited resources to satisfy unlimited wants It means that there are limited resources to satisfy unlimited wants

Economics Review What characteristics would describe a partnership? What characteristics would describe a partnership?

Economics Review two or more people own the company two or more people own the company Add more!!!! Add more!!!!

Economics Review What is a deduction on personal income taxes if a person itemizes? What is a deduction on personal income taxes if a person itemizes?

Economics Review Mortgage Interest on 1-2 homes Mortgage Interest on 1-2 homes Charitable contributions Charitable contributions State property or sale taxes State property or sale taxes

Economics Review What is the relationship between American exports and American economic growth? What is the relationship between American exports and American economic growth? Exports account for one-third of Exports account for one-third of America’s economic growth. The American economy depends totally on exports. The American economy depends totally on exports. Over half of the economy’s growth can be attributed to exports. Over half of the economy’s growth can be attributed to exports.

Economics Review Exports account for one- third of America’s economic growth. Exports account for one- third of America’s economic growth.

Economics Review What is the role of government in a pure market economy - What is the role of government in a pure market economy -

Economics Review government does not interfere in the economy government does not interfere in the economy

What role do households play in the production of businesses’ products and government’s goods and services? Households –

Economics Review provide the resources that make production possible.

Give examples

Economics Review What are the characteristics of a Command Economy? What are the characteristics of a Command Economy?

Government controls the economy. Government controls the economy.

Economics Review

Economics Review What are the characteristics of a Traditional Economy? What are the characteristics of a Traditional Economy?

Economics Review Small and ritualistic Small and ritualistic

Economics Review What are the characteristics of a Free Enterprise Economy? What are the characteristics of a Free Enterprise Economy?

Economics Review Economy balancing government intervention and freedom like the U.S. Economy balancing government intervention and freedom like the U.S.

Economics Review Which of the following questions might an economist ask in order to develop a hypothesis about consumer spending in the United States after World War I? Which of the following questions might an economist ask in order to develop a hypothesis about consumer spending in the United States after World War I? What products did households buy in the 1920s? What products did households buy in the 1920s? How many labor strikes occurred in the 1920s? How many labor strikes occurred in the 1920s? What was the average hourly wage in the 1920s? What was the average hourly wage in the 1920s? How long did it take to produce a car in the 1920s? How long did it take to produce a car in the 1920s?

Economics Review What products did households buy in the 1920s? What products did households buy in the 1920s?

Economics Review Which economic activity could be carried out just as well in suburban, rural, or urban environments? Which economic activity could be carried out just as well in suburban, rural, or urban environments?

Economics Review A service activity such as teaching. A service activity such as teaching.

Economics Review Why will deficit spending end a depression? Why will deficit spending end a depression?

Economics Review It increases purchasing power and stimulates economic growth. It increases purchasing power and stimulates economic growth.

Economics Review Be able to read a chart and graph. Be able to read a chart and graph.

Economics Review What is the process in which union and company representatives meet to negotiate a new labor contract is known as – What is the process in which union and company representatives meet to negotiate a new labor contract is known as –

Economics Review Collective Bargaining Collective Bargaining

Economics Review Which are the problems in developing nations? Which are the problems in developing nations?

Economics Review Unstable government Unstable government Illiteracy Illiteracy Capital Flight Capital Flight Limited natural resources Limited natural resources Rapid Population Growth Rapid Population Growth Foreign Debt Foreign Debt Poor health care Poor health care