1. ___________ is determining how to satisfy unlimited wants with limited resources.

2. 1. Economics is determining how to satisfy unlimited wants with limited resources.

3. 2. The universal problem that forces us to make choices in a world of limited resources and unlimited wants is?

4. Scarcity

5. What are the essential ingredients needed to produce any product or service?

6. 2. What are the essential ingredients needed to produce any product or service? Factors of Production

7. __________ involves taking risks and combining the factors of production in the most efficient manner.

8. 3. Entrepreneurship involves taking risks and combining the factors of production in the most efficient manner.

9. What is an entrepreneurs most valuable trait?

10. 3. What is an entrepreneurs most valuable trait? Knows when to take a risk

11. Opportunity cost is the most desirable ____________ given up as a result of a decision.

12. 4. Opportunity cost is the most desirable ____________ given up as a result of a decision. alternative

13. Which basic economic questions looks at the allocation of scarce resources?

14. 7. Which basic economic questions that look at the allocation of scarce resources? What should be produced? How should it be produced? Who gets what is produced?

15. 6. What are the four types of market systems?

16. 6. What are the four types of market systems? Traditional Command Market Mixed

17. What type of market answers the basic economic questions the way they have always been done?

18. 7.What type of market answers the basic economic questions the way they have always been done? Traditional

19. Which economic system answers the basic economic questions through the government?

20. 8. Which economic system answers the basic economic questions through the government ? Command

21. Which economic system is where the buyers and sellers answer the basic economic questions?

22. 9. Which economic system is where the buyers and sellers answer the basic economic questions? Free Market

23. What type of economic system does the United States have?

24. 10. What type of economic system does the United States have? Mixed

25. _______ ________, the father of capitalism, believed society benefited from the pursuit of self-interest and his beliefs influenced the United States and other economic systems.

26. 11. Adam Smith, the father of capitalism, believed society benefited from the pursuit of self- interest and his beliefs influenced the United States and other economic systems.

27. This man believed that the group’s needs should be put ahead of the individual’s needs. Also known as the father of communism, who was he?

28. 12. This man believed that the group’s needs should be put ahead of the individual’s needs. Also known as the father of communism, who was he? Karl Marx

29. What do you call a shared commodity or service that would be inefficient to make people pay for or try to exclude them from?

30. 13. What do you call a shared commodity or service that would be inefficient to make people pay for or try to exclude them from? Public good

31. Who finances public sector goods?

32. 13. Who finances public sector goods? Government

33. What sector is represented by individuals, businesses, and non- government entities ?

34. 14. What sector is represented by individuals, businesses, and non-government entities ? Private Sector

37. ________ is a person who receives public goods but does not pay for the public goods.

38. 16. Free rider is a person who receives public goods but does not pay for the public goods.

39. What law states that at higher prices consumers generally buy smaller quantities, and at lower prices consumers tend to buy larger quantities?

40. 17. What law states that at higher prices consumers generally buy smaller quantities, and at lower prices consumers tend to buy larger quantities? Law of Demand

41. __________ goods are ones that people buy INSTEAD of something and ___________ goods are ones that people buy to GO WITH something.

42. 18. Substitute goods are ones that people buy INSTEAD of something and complementary goods are ones that people buy to GO WITH something.

43. ___________ ______ is the additional, or extra, expense of producing one more item.

44. 19. Marginal cost is the additional, or extra, expense of producing one more item.

45. 20. Which law helps explain consumer behavior by stating that there comes a point when satisfaction decreases with increased consumption?

46. 20. Which law helps explain consumer behavior by stating that there comes a point when satisfaction decreases with increased consumption? Law of Diminishing Marginal Utility

47. _________ is the various amounts of a good which producers are willing and able to offer for sale at a given time at all different possible prices. -wood -last

48. 21. Supply is the various amounts of a good which producers are willing and able to offer for sale at a given time at all different possible prices. -wood -last

49. The __________ tells us businesses offer more for sale when prices are higher and offer less for sale when prices fall.

50. 22. The Law of Supply tells us businesses offer more for sale when prices are higher and offer less for sale when prices fall.

51. What can graphically explain market conditions?

52. 23. What can graphically explain market conditions? Supply & demand curves

53. A _______ is a condition when the price is above the point of equilibrium or market clearing price.

54. 24. A surplus is a condition when the price is above the point of equilibrium or market clearing price.

55. ____________ ____________ markets exist when the products are identical, or nearly identical, and there are many sellers.

56. 25. Perfect competition markets exist when the products are identical, or nearly identical, and there are many sellers.

57. What do large businesses experience when they buy discounts and/or afford equipment smaller businesses cannot afford?

58. 26. What do large businesses experience when they buy discounts and/or afford equipment smaller businesses cannot afford? Economies of scale

59. What do you call it when increased inputs do not lead to increased productivity?

60. 27.What do you call it when increased inputs do not lead to increased productivity? Diminishing returns

61. The majority of businesses can be categorized as forms of __________, or ________.

62. 28. The majority of businesses can be categorized as forms of proprietorships, partnerships, or corporations.

63. What do you call a business with one owner and benefits from being one’s own boss?

64. 29. What do you call a business with one owner and benefits from being one’s own boss? Sole proprietorship

65. What do you call businesses with few owners that usually share responsibilities to match their strengths?

66. 30. What do you call businesses with few owners that usually share responsibilities to match their strengths? partnerships

67. What type of businesses provides limited liability for owners, unlimited life for the firm, and the ability to raise large amounts of monetary capital?

68. 31. What type of businesses provides limited liability for owners, unlimited life for the firm, and the ability to raise large amounts of monetary capital? Corporations

69. What is it called when labor unions use elective representatives to negotiate with their employers? - ion

70. 32. What is it called when labor unions use elective representatives to negotiate with their employers? Collective bargaining - ion

71. Corporations sell this to link investors and businesses looking to expand.

72. 33. Corporations sell this to link investors and businesses looking to expand. stock

73. _______ ______ is a type of investment which gives ownership to the investors and a chance to profit via dividends and capital gains.

74. 34. Common stock is a type of investment which gives ownership to the investors and a chance to profit via dividends and capital gains.

75. What are the three uses of money?

76. 35. What are the three uses of money? Medium of exchange Standard of measure Store of value

77. This purpose of money states that money can be used as trade for goods and services… what is it?

78. 36. This purpose of money states that money can be used as trade for goods and services… what is it? Medium of exchange

79. What use of money means we can use money to compare the value of different goods and services?

80. 37. What use of money means we can use money to compare the value of different goods and services? Standard of measure

81. Which purpose of money explains that money is worth a similar amount later if you choose to save it instead of spend it?

82. 38. Which purpose of money explains that money is worth a similar amount later if you choose to save it instead of spend it? Store of value

83. 39. What are the six characteristics of money?

84. 39. What are the six characteristics of money? Durable Portable Divisible Accepted Uniform Limited supply

85. What type of money has no value and is accepted only because the government says it has value and the people believe it?

86. 40. What type of money has no value and is accepted only because the government says it has value and the people believe it? Fiat

87. ________ are financial institutions that are non-profit and whose customers are members.

88. 41. Credit Unions are financial institutions that are non-profit and whose customers are members.

89. _________ insures customers deposits if a bank fails.

90. 42. FDIC, Federal Deposit Insurance Corporation, insures customers deposits if a bank fails.

91. What explains the profit or loss you are getting on your investment?

92. 43. What explains the profit or loss you are getting on your investment? Rate of return

93. What tool can help consumers better manage their resources?

94. 44. What tool can help consumers better manage their resources? A budget

95. Which agency provides information to consumers concerning both good and bad business practices by area companies?

96. 45. Which agency provides information to consumers concerning both good and bad business practices by area companies? Better Business Bureau

97. What are the three C’s of Credit???

98. 46. What are the three C’s of Credit??? Character, Capacity, & Collateral

99. When looking at the three C’s of credit, which refers to the individual’s ability to put property (assets) up to secure the loan?

100. 47. When looking at the three C’s of credit, which refers to the individual’s ability to put property (assets) up to secure the loan? collateral

101. Which of the three C’s of credit is the individuals ability to pay bills on time or payment history?

102. 48. Which of the three C’s of credit is the individuals ability to pay bills on time or payment history? character

103. When looking at the three C’s of credit, which refers to the earnings of the individual and his or her ability to take on new debt?

104. 49. When looking at the three C’s of credit, which refers to the earnings of the individual and his or her ability to take on new debt? capacity

105. What is the dollar value of all final goods and services produced in the US in the course of a year?

106. 50.What is the dollar value of all final goods and services produced in the US in the course of a year? Gross Domestic Product

107. ___________ _______ __________ components are consumer spending, business investments, government spending, and net exports.

108. 51. Gross domestic product components are consumer spending, business investments, government spending, and net exports.

109. What is a period of rising prices and affects consumers as well as producers?

110. 52. What is a period of rising prices and affects consumers as well as producers? inflation

111. People on ________ _________ can be negatively affected by inflation.

112. 53. People on fixed income can be negatively affected by inflation.

113. What are the two principles taxes are based on?

114. 54. What are the two principles taxes are based on? Ability to pay & benefits received

115. This tax principle promotes the idea that the rich can afford to pay taxes the poor cannot afford to pay.

116. 55.This tax principle promotes the idea that the rich can afford to pay taxes the poor cannot afford to pay. Ability to Pay

117. What are the three categories of taxes?

118. 56. What are the three categories of taxes? Progressive, regressive, & proportional

119. ______________ taxes are characterized by a lower tax rate for lower incomes and a higher tax rate for higher incomes.

120. 57. Progressive taxes are characterized by a lower tax rate for lower incomes and a higher tax rate for higher incomes.

121. ______________ taxes are designed to take the same percentage of your income regardless of how much money you make

122. 58. Proportional taxes are designed to take the same percentage of your income regardless of ow much money you make

123. ___________ provides the majority of revenues for the U.S. government

124. 59. Income tax provides the majority of revenues for the U.S. government

125. ___________ are taken from your paycheck. They include federal taxes, state taxes, and FICA.

126. 60.Withholding taxes are taken from your paycheck. They include federal taxes, state taxes, and FICA.

127. Which type of policy manages the nation’s financial affairs through a program of expenditures and taxation?

128. 61. Which type of policy manages the nation’s financial affairs through a program of expenditures and taxation? Fiscal

129. Who focused on taxes and spending on the whole economy (as opposed to the individual) and argued for demand –side policies as a more effective means of managing the economy?

130. 64. Who focused on taxes and spending on the whole economy (as opposed to the individual) and argued for demand –side policies as a more effective means of managing the economy? John Maynard Keynes

131. When commercial banks increase their loans to business and consumers, this usually results in an ___________ in the nation’s money supply.

132. 65. When commercial banks increase their loans to business and consumers, this usually results in an increase in the nation’s money supply.

133. A budget ________ occurs in years when expenditures exceed revenues.

134. 66. A budget deficit occurs in years when expenditures exceed revenues.

135. How do you figure out the amount of the national debt?

136. 67. How do you figure out the amount of the national debt? Sum of yearly deficits

137. Who manages the money supply and is the nation’s central bank?

138. 68.Who manages the money supply and is the nation’s central bank? - Federal Reserve

139. What tools can the Fed use to manage the economy through monetary policy?

140. 70. What tools can the Fed use to manage the economy through monetary policy? Changing the discount rate Changing the reserve requirement Buying and selling securities

141. Open Market Operations are a __________ _______ tool used by the Federal Reserve where they buy and sell US securities. -ywog Spanish for hands

142. 71. Open Market Operations are a monetary policy tool used by the Federal Reserve where they buy and sell US securities. Spanish for hands

143. A __________ is two consecutive economic quarters where GDP decreases.

144. 72. A recession is two consecutive economic quarters where GDP decreases.

145. What do you call a very severe recession where there are large numbers or people out of work, acute shortages, and excess capacity in manufacturing plants?

146. 73. What do you call a very severe recession where there are large numbers or people out of work, acute shortages, and excess capacity in manufacturing plants? depression

147. What type of advantage exists when a country can produce something at a lower opportunity cost than another country?

148. 74. What type of advantage exists when a country can produce something at a lower opportunity cost than another country? comparative

149. An ___________ _________ is when it takes a country fewer resources to produce something than another country.

150. 75. An absolute advantage is when it takes a country fewer resources to produce something than another country.

151. ____________, ___________, and the ___________ are trade arrangements designed to benefit both individuals and countries.

152. 76. NAFTA, the EU and the WTO are trade arrangements designed to benefit both individuals and countries.

153. ____________ favors domestic industry, while _____ ______ favors absence of trade barriers.

154. 77. Protectionism favors domestic industry, while free trade favors absence of trade barriers.

155. What type of trade legislation benefits some groups at the expense of others - La Brea - a tree falls in the forest

156. 78. What type of trade legislation benefits some groups at the expense of others. Tariffs - La Brea - a tree falls in the forest

157. What do you call it when you import more than you export? - Triangular

158. 79.What do you call it when you import more than you export? - trade deficit - Triangular

159. ________ ______ determine the value at which foreign currency can be traded.

160. 80. Exchange Rates determine the value at which foreign currency can be traded.