The reason people must choose which goods to buy and consume is: -specialization Scarcity An abundance of free resources People engaging in exchange

The reason people must choose which goods to buy and consume is: -specialization Scarcity An abundance of free resources People engaging in exchange

Decide the amount of each resource to produce Decide the amount of each resource to produce. Analyze how labor intensive it will be to produce. Analyze how capital intensive it will be to produce. These statements are closely related to which of the basic economic questions: What to produce. For whom to produce How to produce What to sell

Decide the amount of each resource to produce Decide the amount of each resource to produce. Analyze how labor intensive it will be to produce. Analyze how capital intensive it will be to produce. These statements are closely related to which of the basic economic questions: What to produce. For whom to produce How to produce What to sell

Entrepreneurs are people who- Put together land, labor, and capital to create new businesses Help settle labor disputes Work on the floor of the stock exchange Produce all of a country’s guns and butter

Entrepreneurs are people who- Put together land, labor, and capital to create new businesses Help settle labor disputes Work on the floor of the stock exchange Produce all of a country’s guns and butter

The circular flow model emphasizes: The relationship of buyers and sellers within a market The government collection of taxes from firms The government purchases of goods from producers Firms selling resources to households

The circular flow model emphasizes: The relationship of buyers and sellers within a market The government collection of taxes from firms The government purchases of goods from producers Firms selling resources to households

It would increase revenue for firms and the government Imagine that households decide to increase their spending. Based on the circular-flow model, how would this event be reflected in the economy? It would increase revenue for firms and the government It would increase current purchasing power and cause expansion It would withdraw income, or current purchasing power, from the system It would increase the amount of imports purchased by consumers

It would increase revenue for firms and the government Imagine that households decide to increase their spending. Based on the circular-flow model, how would this event be reflected in the economy? It would increase revenue for firms and the government It would increase current purchasing power and cause expansion It would withdraw income, or current purchasing power, from the system It would increase the amount of imports purchased by consumers

What does it mean that a company is going public? The company takes large loans from the government The company holds a press conference to release new products The company sells ownership shares, otherwise known as stock, to the general public. The company sells bonds to the general public

What does it mean that a company is going public? The company takes large loans from the government The company holds a press conference to release new products The company sells ownership shares, otherwise known as stock, to the general public. The company sells bonds to the general public

Restrictions on occupational choices Limits on competition The U.S. free enterprise system encourages private property ownership through- Restrictions on occupational choices Limits on competition Increased government regulation Tax incentives for homeowners

Restrictions on occupational choices Limits on competition The U.S. free enterprise system encourages private property ownership through- Restrictions on occupational choices Limits on competition Increased government regulation Tax incentives for homeowners

Opportunity costs arise in production because- Resources must be shifted away from producing one good in order to produce another Resources are unlimited Monetary costs of inputs usually outweigh non-monetary costs Wants are limited in society

Opportunity costs arise in production because- Resources must be shifted away from producing one good in order to produce another Resources are unlimited Monetary costs of inputs usually outweigh non-monetary costs Wants are limited in society

What are the three basic economic questions a free market economy answers? What to produce, how much to produce, when to produce What to produce, how to produce, how much to produce What to produce, how to produce, and for whom to produce How to produce, how much to produce, and for whom to produce

What are the three basic economic questions a free market economy answers? What to produce, how much to produce, when to produce What to produce, how to produce, how much to produce What to produce, how to produce, and for whom to produce How to produce, how much to produce, and for whom to produce

Which is a unique characteristic of corporations? Lack of special taxation Limited life Enjoys the legal rights of an individual Subject to less regulations

Which is a unique characteristic of corporations? Lack of special taxation Limited life Enjoys the legal rights of an individual Subject to less regulations

Risk of decline in value Risk of lost purchasing power Manuel would like to invest his money so it can grow. There are always risks. Which of the following is not a risk he should consider? Risk of decline in value Risk of lost purchasing power Risk of liquidity Risk of failure of default

Risk of decline in value Risk of lost purchasing power Manuel would like to invest his money so it can grow. There are always risks. Which of the following is not a risk he should consider? Risk of decline in value Risk of lost purchasing power Risk of liquidity Risk of failure of default

What is an important benefit of the U.S. free market system? Government intervention in all industry sectors Freedom of choice for consumers and producers Freedom of choice for consumers and borrowers Limited variety of goods and services

What is an important benefit of the U.S. free market system? Government intervention in all industry sectors Freedom of choice for consumers and producers Freedom of choice for consumers and borrowers Limited variety of goods and services

To say that a country has an absolute advantage in the production of steel is to say that- Its opportunity cost of producing steel is lower than any other country’s The relative proice of steel is higher in that country than in any other It can produce more steel with a given amount of resources than any other country can Its opportunity cost of producing steel is greater than any other country’s

To say that a country has an absolute advantage in the production of steel is to say that- Its opportunity cost of producing steel is lower than any other country’s The relative price of steel is higher in that country than in any other It can produce more steel with a given amount of resources than any other country can Its opportunity cost of producing steel is greater than any other country’s

International trade is based on specialization, as countries specialize in products they have a comparative advantage. What determines a comparative advantage? Absolute advantage Relative price Sectors of the economy Opportunity cost

International trade is based on specialization, as countries specialize in products they have a comparative advantage. What determines a comparative advantage? Absolute advantage Relative price Sectors of the economy Opportunity cost

Why is NAFTA important to trade? It eliminates barriers to trade and smoothes the progress of the cross-border movement of goods and services throughout N. America It is the only international organization whose main function is to ensure that trade flows smoothly, predictably, and freely It is an organization created to provide goods and services to European countries torn apart after two World Wars It is an agreement that ensures consistent trade between the U.S. , Russia, and China

Why is NAFTA important to trade? It eliminates barriers to trade and smoothes the progress of the cross-border movement of goods and services throughout N. America It is the only international organization whose main function is to ensure that trade flows smoothly, predictably, and freely It is an organization created to provide goods and services to European countries torn apart after two World Wars It is an agreement that ensures consistent trade between the U.S. , Russia, and China

Consumers; government Labor; consumers Consumers; labor The group that benefits the most from free international trade is _____, and the group that benefits the least is ____. Consumers; government Labor; consumers Consumers; labor Government; labor

Consumers; government Labor; consumers Consumers; labor The group that benefits the most from free international trade is _____, and the group that benefits the least is ____. Consumers; government Labor; consumers Consumers; labor Government; labor

What is one of the effects of trade barriers on economic activity? Tariffs and quotas increase the price of an imported product Quotas increase the number of a product exported to a country Tariffs decrease the price of an imported product Trade barriers guide consumers toward the purchase of imported goods

What is one of the effects of trade barriers on economic activity? Tariffs and quotas increase the price of an imported product Quotas increase the number of a product exported to a country Tariffs decrease the price of an imported product Trade barriers guide consumers toward the purchase of imported goods

Pierre is an importer of US corn Pierre is an importer of US corn. The cost of corn is $2500 per 5000 bushels. Pierre wants to import 60,000 bushels. If the exchange rate is 1C = 1.50 USD, how many Euros will Pierre need to convert to US dollars? 30,000 C 20,000 C 25,000 C 7500 C

Pierre is an importer of US corn Pierre is an importer of US corn. The cost of corn is $2500 per 5000 bushels. Pierre wants to import 60,000 bushels. If the exchange rate is 1C = 1.50 USD, how many Euros will Pierre need to convert to US dollars? 30,000 C 20,000 C 25,000 C 7500 C

1. Free Enterprise 2. Socialism 3. Communism What set best completes the chart? 1. Little Freedom, Total Freedom, No Freedom 2. Little Freedom, No Freedom, Total Freedom 3. Total Freedom, No Freedom, Little Freedom 4. Total Freedom, Little Freedom, No Freedom

1. Free Enterprise 2. Socialism 3. Communism What set best completes the chart? 1. Little Freedom, Total Freedom, No Freedom 2. Little Freedom, No Freedom, Total Freedom 3. Total Freedom, No Freedom, Little Freedom 4. Total Freedom, Little Freedom, No Freedom

Allowing for strong free markets What idea advocated by John Maynard Keynes was attempted to pull the US economic system out of recession. Allowing for strong free markets Little government intervention in the economy Job specialization and division of labor to increase the productivity of an economy Increased role of government to correct instability in a country’s economy

Allowing for strong free markets What idea advocated by John Maynard Keynes was attempted to pull the US economic system out of recession. Allowing for strong free markets Little government intervention in the economy Job specialization and division of labor to increase the productivity of an economy Increased role of government to correct instability in a country’s economy

The demand for butter should increase Assume that consumers consider butter and bread complementary goods. If the price of bread increases by 25%, what will be the expected consequence for butter? The demand for butter should increase The demand for butter should decrease The demand for butter remains the same The price of butter should decrease

The demand for butter should increase Assume that consumers consider butter and bread complementary goods. If the price of bread increases by 25%, what will be the expected consequence for butter? The demand for butter should increase The demand for butter should decrease The demand for butter remains the same The price of butter should decrease

Which of the following exemplifies monopolistic market structure? Large number of sellers, substantial barriers to entry, some control over price One seller, no opportunity to enter the market, complete control over price Large number of sellers, few barriers to entry, no control over price A few sellers, substantial barriers to entry, some control over price.

Which of the following exemplifies monopolistic market structure? Large number of sellers, substantial barriers to entry, some control over price One seller, no opportunity to enter the market, complete control over price Large number of sellers, few barriers to entry, no control over price A few sellers, substantial barriers to entry, some control over price.

Which of the following is the best title for the list above Zoning laws ordinances regulating noise building safety and sanitation preservation of historic buildings Which of the following is the best title for the list above Gov’t restrictions placed on businesses Costs and benefits of business property Monopolistic competition Economic interdependence

Which of the following is the best title for the list above Zoning laws ordinances regulating noise building safety and sanitation preservation of historic buildings Which of the following is the best title for the list above Gov’t restrictions placed on businesses Costs and benefits of business property Monopolistic competition Economic interdependence

According to the law of supply… The quantity of a product supplied will decrease as buyers’ incomes decrease Producers will not supply a product if there is an opportunity cost attached to acquiring the product There is a direct relationship between the price of a product and the quantity of the product supplied There is an inverse relationship between the price of a product and the quantity of the product supplied

According to the law of supply… The quantity of a product supplied will decrease as buyers’ incomes decrease Producers will not supply a product if there is an opportunity cost attached to acquiring the product There is a direct relationship between the price of a product and the quantity of the product supplied There is an inverse relationship between the price of a product and the quantity of the product supplied