1. Chapter 2 and 3 Economics Chapter 2 and 3 Economics

2. First part of Jeopardy deals with Chapter 2

3. Level of economic prosperity:

4. Standard of Living

5. The concentration of the productive efforts of individuals and businesses on a limited number of activities:

6. Specialization

7. The structure of methods and principles that a society uses to produce and distribute goods and services (2 words):

8. Economic System

9. An individual’s own personal gain:

10. Self-Interest

11. Another name for a centrally planned economy.

12. Command Economy

13. The hope of reward or fear of penalty that encourages a person to behave in a certain way:

14. Incentive

15. The arena of exchange in which firms purchase the factors of production from households: A) Profit B) Factor Payment C) Factor Market D) Consumer Sovereignty

16. C) Factor Market

17. The power of consumers to decide what gets produced: A) Profit B) Factor Payment C) Factor Market D) Consumer Sovereignty

18. D) Consumer Sovereignty

19. The struggle among producers for the dollars of consumers:

20. Competition

21. A set of government programs that protect people who face unfavorable economic conditions is called a _______ _____.

22. Safety Net

23. The amount of money a business receives in excess of its expenses:

24. Profit

25. An economic system that relies on habit, custom, or ritual to decide the three key economic questions.

26. Traditional Economy

27. The income people receive in return for supplying factors of production: A) Profit B) Factor Payment C) Factor Market D) Consumer Sovereignty

28. B) Factor Payment

29. A range of economic and political system based on the belief that wealth should be evenly distributed throughout society: A) Communism B) Authoritarian C) Capitalism D) Socialism

31. Describing a form of government that limits individual freedoms and requires strict obedience from its citizens: A) Communism B) Authoritarian C) Capitalism D) Socialism

32. B) Authoritarian

33. True or False: A political system in which the government owns and controls all resources and means of production and makes all economic decisions is called communism.

34. True

35. The doctrine that government generally should not intervene in the marketplace:

36. Laissez Faire

37. The process of selling businesses or services operated by the government to individual investors, and then allowing them to compete in the marketplace:

38. Privatization

39. An economic system in which investments in firms are made in a free market by private decisions rather than state control: A) Free Enterprise System B) Mixed Economy C) Incentive D) Competition

40. A) Free Enterprise System

41. A person or group of people living in a single residence: A) Firm B) Invisible Hand C) Household D) Trick question—none of the above

42. C) Household C) Household

43. An organization that uses resources to produce or service, which it then sells: A) Firm B) Invisible Hand C) Household D) Trick question—none of the above

44. A) Firm

45. This man coined the ‘invisible hand’ to describe self-regulating nature of the marketplace:

46. Adam Smith

47. A market-based economic system in which the government is involved to some extent: A) Traditional Economy B) Command Economy C) Market Economy D) Mixed Economy

48. D) Mixed Economy

49. Property that is owned by individuals or companies, not by the government or the people as a whole (2 words):

50. Private Property

51. The arena of exchange in which households purchase goods and services from firms: A) Product Market B) Factor Market C) Factor Payment D) Incentive

52. A) Product Market

53. The process of bringing new methods, products, or ideas into use: A) Profit B) Innovation C) Standard of Living D) Safety Net

54. B) Innovation

55. Any arrangement that allows buyers and sellers to exchange things: A) Standard of Living B) Profit C) Innovation D) Market

57. Second part of Jeopardy deals with Chapter 3

58. A commitment to the value of work:

59. Work Ethic

60. A proposed law submitted directly to the public: A) Referendum B) Obsolescence C) Patent D) Copyright

61. A) Referendum A) Referendum

62. Situation in which older products and processes become out-of-date: A) Referendum B) Obsolescence C) Patent D) Copyright

63. B) Obsolescence

64. The principle that everyone has the same legal rights: A) Private Property Rights B) Legal Equality C) Voluntary Exchange D) Interest Groups

65. B) Legal Equality

66. True or False The principle that people decide what agreements they want to enter into is called private property rights.

67. FALSE This is called Free Contract

68. The concerns of a society as a whole: A) Public Disclosure Laws B) Gross Domestic Product C) Eminent Domain D) Public Interest

70. The right of a government to take private property for public use: A) Public Disclosure Laws B) Gross Domestic Product C) Eminent Domain D) Public Interest

71. C) Eminent Domain

72. True/False: Laws requiring companies to provide information about their products or services is called public disclosure laws.

73. True

74. The dollar value of all final goods and services produced within a country’s borders in a given year: A) GNP (Gross National Product) B) GDP (Gross Domestic Product) C) NDP (National Domestic Product) D) USP (United States Product)

75. B) GDP (Gross Domestic Product)

76. The principle that anyone can compete in the marketplace: A) Profit Motive B) Free Contract C) Legal Equality D) Open Opportunity

77. D) Open Opportunity

78. Love of one’s country:

79. Patriotism

80. Something which benefits a good or service when they don’t purchase an item: A) Positive Externality B) Negative Externality C) Public Good D) Average Externality

81. A) Positive Externality

82. A shared good or service for which it would be inefficient or impractical to make consumers pay individually and to exclude those who did not pay: A) Average Externality B) Negative Externality C) Public Good D) Positive Externality

83. C) Public Good

84. Give two examples of a public good….

85. 1. Public Education 2. Highway System 3. Law Enforcement 1. Public Education 2. Highway System 3. Law Enforcement

86. True/False: Market failure is a situation in which the free market, operating on its own does not distribute resources efficiently.

87. True

88. A period of macroeconomics expansion, or growth, followed by one of contraction, or decline: A) Referendum B) Business Cycle C) Gross Domestic Product D) Public Sector

89. B) Business Cycle

90. The cost of producing a good or service to be paid for by someone other than the producer:

91. Negative Externality

92. A license that gives the inventor of a new product the exclusive right to sell it for a specific period of time:

93. Patents

94. Patents in the United States are for how long: A) 10 years B) 17 years C) 20 years D) 23 years

95. C) 20 years

96. The part of the economy that involves the transaction of the government: A) Obsolescence B) Referendum C) Free Rider D) Public Sector

97. D) Public Sector

98. True or False: An in-kind benefits is a financial award given by a government agency to a private individual or group in order to carry out a specific task.

99. False This is called a grant

100. True or False: Direct payments of money by the government to the poor, disabled, and retired people is called welfare.

101. False This is called cash transfers

102. An income level below that which is needed to support families or households:

103. Poverty Threshold

104. A private organization that tries to persuade public officials to act in ways that benefit its members: A) Interest Group B) Eminent Domain C) Private Property Rights D) Legal Equality

105. A) Interest Group

106. A government document that grants an author exclusive rights to public and sell creative works:

107. Copyright

108. The incentive that drives individuals and business owners to improve their material well-being: A) Open Opportunity B) Economic Transition C) Profit Motive D) Laissez Faire

109. C) Profit Motive

110. For one point, name all FIVE of the basic principles of Free Enterprise the U.S. uses today:

111. 1.Profit motive 2. Open Opportunity 3. Legal Equality 4. Private Property 5. Freedom to Buy and Sell 1.Profit motive 2. Open Opportunity 3. Legal Equality 4. Private Property 5. Freedom to Buy and Sell

112. Last Question : Give an example of a positive externality.

113. Answers will vary…

114. Last Question : Give an example of a negative externality.

115. Answers will vary…