1. Economic Fundamentals SSEF1-6
Unit 1 Review Game
Economic Fundamentals
SSEF1-6

2. Rules Each team gets a dry erase board and marker
Each team to raise the correct answer in the air will earn 1 point.
Tally your points on your answer board.
First place= +6 Second place= +5
Third place= +4 Fourth place= +3

3. Ready… Set… Here we go!

4. _______________ begin new businesses because they believe the potential rewards of success outweigh the potential costs associated with the risks.

5. Entrepreneurs

6. ________________ is a basic condition that exists when unlimited wants exceed limited productive resources

7. Scarcity

8. _______________ is the value of one’s next best alternative given up when a choice is made

9. Opportunity Cost

10. Rational actors in the economy will only select a choice if the marginal ___________ of it are equal to or greater than the marginal _____________ of the action.

11. Benefits/costs

12. A fast food restaurant that uses division of labor when one employee takes drive-thru orders, and one employee cooks the food while another employee wraps the food to give to the customer is a prime example of ______________________.

13. Specialization

14. ___________ _____________ occurs when two economic actors willingly trade one item for another because the value of the item they are receiving is greater at the time than the item they are giving up to receive it.

15. Voluntary Exchange

16. Economic systems must answer these 3 questions of production?
What to make?
How to make it?
__________________

17. Who do we produce it for?

18. In a _____________ economic system, the answers to the questions are determined by the interactions of buyers and sellers in the market with very little to no government intervention.

19. Market

20. In a ________________ economic system, the questions are answered by a central authority or government

21. Command

22. In a market economy, individuals and firms own all the factors of production. There is also a high level of competition because firms can freely open and close businesses. Competition benefits consumers with _______ prices.

23. Lower

24. Economic growth is measured by GDP. Typical growth for the U. S
Economic growth is measured by GDP. Typical growth for the U.S. is ________% GDP growth per year.

25. 2-3%

26. If the U.S. economy is stable, GDP growth is around 3% and ______________ rate is between 4-6%.

27. Unemployment

28. Governments in the United States provide ___________ goods and services only when there is a reason that the market is unable to provide the good or service at a level considered beneficial to society

29. public

30. _____________ ___ _____________ involves taking tax money from one group of individuals or firms and giving it to other individuals and firms. Example: welfare payments

31. Redistribution of income

32. Increasing taxes or regulations on companies that pollute would be an example of the government __________________ ________________ ___________.

33. Resolving Market failures

34. Economic growth occurs when countries invest in physical capital and __________ capital.

35. Human

36. On the production possibilities frontier, point A represents

37. Inefficient production

38. Points B, C, and D represent…

39. Efficient Production

40. Prior to starting a new business, entrepreneurs evaluate their ability to generate _____________ which is calculated as a firm’s revenue minus its costs.

41. Profits

42. In England, the government owns industries such as the airline, TV stations, hospitals, universities, and defense contractors. However, most other industries are privately owned firms that compete for business. England can BEST be described as having a ___________ economy.

43. Mixed

44. Tradeoffs, opportunity costs, marginal benefits, marginal costs and personal priorities are all important to consider when making a _____________ decision.

45. rational

46. The study of how individuals, firms (businesses), and nations can best allocate their limited resources is called _______________

47. Economics

48. When the government upholds intellectual property laws such as copyrights and patents, they are ___________ _______ ______

49. Protecting private property

50. A cost due to an increase in activity is called a

51. Marginal cost

52. Mary decides to produce and sell apple juice
Mary decides to produce and sell apple juice. She leases an apple orchard and renovates her kitchen to produce and bottle the apple juice. Mary hires three employees. Two employees will maintain the apple orchard and bottle the juice, and one will market the apple juice using the Internet. In the manufacture and sale of apple juice, what factor of production does Mary represent?

53. Entrepreneur

54. An economic system in which there is little innovation, little profit motive, and government own the means of production and property

55. Command economy

56. Opportunity cost means individuals make decisions that require them to _________ _____the next best alternative.

57. Give up

58. The relationship of inputs to outputs is

59. productivity

60. Government agencies inspect restaurants on a regular basis to ensure the restaurants are obeying health and food safety regulations. Therefore, they charge _________ prices to cover the costs of the time and resources used in meeting the regulations.

61. higher

62. When governments break up ________________ and try to address shortages or surpluses, they are serving the role of resolving market failures.

63. monopolies

64. At a restaurant you may find a host, waiter, bus person, cook, and dishwasher. This is an example of the economic principle of _____________ _______ ________________.

65. Division of labor

66. Market economies allocate resources by ____________.

67. price

68. An allocation strategy that we deal with on a daily basis is ________________ ________________, ____________ __________ when others get the good or service before us.

69. First come, first serve

70. Lower prices for consumers, more efficiency and innovation by producers, and less overall government influence in a market are all effects typically associated with government ___________.

71. deregulation

72. If the government raises the excise tax on gasoline making it more expensive, people will act predictably by the negative ____________ and most likely take fewer vacations.

73. incentive

74. Economic growth of a country can be seen on the PPC going outward to the __________.

75. right

76. _____________ leads to a need for voluntary exchange.

77. Specialization

78. The marginal revenue a business owner earns comes from producing _________ more product.

79. one

80. Lettuce, onions, tomatoes, and potatoes would all be considered ________ resources used by a restaurant.

81. land

82. If you had two job offers from Walmart and Target, and you choose to work at Target, then your opportunity cost is what you could’ve had working at ________.

83. Walmart

84. In a pure market economy (NO ______________ INTERVENTION), any projects to improve society would be paid for by those who are willing to pay for them.

85. Government

86. BONUS QUESTION: 10 POINTS (All or nothing) Part 1: What banking/finance law did the U.S. government repeal in 1999? Part 2: Was this repeal an example of regulation or deregulation?