1. Chapter 3 Quiz Review Economics

2. This depicts how money flows throughout the economy.
Circular Flow Model

3. Where final products
are sold by firms to
Households.
Where households
Sell the Factors of
Production to firms

4. A federal health insurance program for senior citizens, regardless of income.
Medicare

5. The act of buyers and sellers freely and willingly engaging in market transactions.
Voluntary Exchange

6. These allow people to own and control their possessions as they wish.
Private Property Rights

7. Here people and businesses carry on their economic affairs freely, but they are subject to some government intervention and regulation.
Mixed Economy

8. The lowest legal wage that can be paid to most workers.
Minimum Wage

9. The person who organizes and manages the land, capital, and labor in order to seek the reward called profit.
Entrepreneurs

10. This started in December of 2007 and lasted until mid-2009
This started in December of 2007 and lasted until mid During this 18-month period, the nation’s Gross Domestic Product actually shrank about 4.5 to 5 percent!
Great Recession

11. This recognizes the role of the consumer as sovereign, or ruler, of the market. The phrase “the customer is always right” reflects this power.
Consumer Sovereignty

12. The energy for these is derived from renewable plant and animal materials, vegetable oils, and municipal and industrial wastes. 
Biofuels

13. A federal program of disability and retirement benefits that covers most working people.
Social Security

14. Resources are privately owned, and competition is allowed to flourish with a minimum of government interference.
Free Enterprise

15. This does not increase over time, even though prices do.
Fixed Income

16. The extent to which revenue from sales exceeds the full opportunity cost of the resources involved in producing the products sold. 
Profit

17. The struggle among sellers to attract consumers with the best products at the lowest prices. 
Competition

18. A rise in the general level of prices—occurs, workers need more money to pay for food, clothing, and shelter.
Inflation

19. The incentive to improve material well-being—is largely responsible for the growth of a free enterprise system.
Profit Motive

20. The market where households buy the products that firms sell.
Product Market

21. The market where firms buy economic resources.
Factor Market

22. Land, Labor, Capital, & Entrepreneurship.
The Factors of Production
Land, Labor, Capital, & Entrepreneurship.

23. They own and sell the Factors of Production.
Households
They own and sell the Factors of Production.

24. The Invisible Hand
This describes the self-regulating nature of a free enterprise economy.

25. Efficiency, freedom, growth, and a wide variety of products.
The advantages of a Free Enterprise Economy.
Efficiency, freedom, growth, and a wide variety of products.

26. This makes an economy more efficient.
Specialization
This makes an economy more efficient.