I FORM EXAM REVIEW A student generated review for the final exam.
LEGAL DISCLAIMER <ul><li>***This should serve as a STUDY AID – and should not be the sole study technique that you use to ...
<ul><li>67 QUESTIONS. </li></ul><ul><li>STARTS......NOW!!!! </li></ul>
QUESTION: <ul><li>How do you find the total costs? </li></ul>
ANSWER: <ul><li>Fixed costs + variable costs </li></ul>
QUESTION: <ul><li>The amount of money it takes to produce “one more unit” is called what cost? </li></ul>
ANSWER: <ul><li>Marginal cost </li></ul>
QUESTION: <ul><li>What are examples of fixed costs? </li></ul>
ANSWER: <ul><li>Mortgage, property taxes </li></ul>
QUESTION: <ul><li>define marginal revenue </li></ul>
ANSWER: <ul><li>change in the total revenue that results from selling “one more unit” </li></ul>
QUESTION: <ul><li>What effects does a contraction (or in some cases, recession) have on the economy </li></ul>
ANSWER: <ul><li>The unemployment rate rises, factories cut back on producing, and the economy as a whole is affected. </li...
QUESTION: <ul><li>What happens at the economic peak? </li></ul>
ANSWER: <ul><li>Factories are producing at full capacity, the unemployment rate is low, and the economy is doing well. </l...
QUESTION: <ul><li>What does an ideal or typical business cycle look like? </li></ul>
ANSWER: <ul><li>It is very inconsistent, constantly rising and falling in motions called expansions, peaks, contractions o...
QUESTION: <ul><li>Name three different levels of governments in our country  </li></ul>
ANSWER: <ul><li>Federal </li></ul><ul><li>State </li></ul><ul><li>Local </li></ul>
QUESTION: <ul><li>Name 3 of the 4 things that are expenditures of State governments </li></ul>
ANSWER: <ul><li>Intergovernmental expenditures, Entitlement programs, Public Welfare, or Subsidizing  </li></ul>
QUESTION: <ul><li>Name 3 of the 4 thing that are expenditures of Local government  </li></ul>
ANSWER: <ul><li>Education, Fire and police protection, Water supply or Sewage and sanitation </li></ul>
QUESTION: <ul><li>The Factor of Demand, Changes in Income is tied closely to how the _______ is doing? </li></ul>
ANSWER: <ul><li>Economy </li></ul>
QUESTION: <ul><li>Price of Related Goods states that if Coca-Cola prices go up, Pepsi demand goes _______? </li></ul>
ANSWER: <ul><li>UP! </li></ul>
QUESTION: <ul><li>In Changes in Expectations people guess the question ______ </li></ul><ul><ul><li>If there might be a su...
ANSWER: <ul><ul><li>D: What will the future bring? </li></ul></ul>
QUESTION: <ul><li>If price of DVD player goes down, demand for DVD’s goes ________? </li></ul>
ANSWER: <ul><li>UP! </li></ul>
QUESTION: <ul><li>What is GDP? </li></ul>
ANSWER: <ul><li>is the total value of all the  final  goods and services produced in a country in one year. </li></ul>
QUESTION: <ul><li>How do we find GDP? </li></ul>
ANSWER: <ul><li>To find GDP, we multiply the price of every good or service in a country by the amount of that good or ser...
QUESTION: <ul><li>What are some weaknesses of GDP? </li></ul>
ANSWER: <ul><li>Many other things raise a country’s well-being without raising GDP, such as reduction in crime and drug an...
QUESTION: <ul><li>What is NDP and why is it a better way to measure standard of living? </li></ul>
ANSWER: <ul><li>NDP takes GDP, and factors in depreciation. Depreciation is wear and tear to durable goods that lowers the...
QUESTION: <ul><li>What is price ceiling? </li></ul>
ANSWER: <ul><li>A price ceiling is where the government says that the price of a good or service cannot go above a certain...
QUESTION: <ul><li>What is an example of price ceiling? </li></ul>
ANSWER: <ul><li>An example of a price ceiling is on the rent of buildings in New York City. </li></ul>
QUESTION: <ul><li>What is a price floor? </li></ul>
ANSWER: <ul><li>A price floor is when the government says the price cannot go below a certain amount. </li></ul>
QUESTION: <ul><li>What is an example of a price floor? </li></ul>
ANSWER: <ul><li>An example is the minimum wage.  </li></ul>
QUESTION: <ul><li>What are the six aspects of capitalism? </li></ul>
ANSWER: <ul><li>Markets, economic freedom, private property rights, competition, profit motive, and voluntary exchange </l...
QUESTION: <ul><li>What does competition lead to? </li></ul>
ANSWER: <ul><li>Competition between buyers and sellers keeps the cost of production low and the quality of the goods highe...
QUESTION: <ul><li>What does private property rights five us the incentive to do? </li></ul>
ANSWER: <ul><li>It gives us the incentive to work, save, and invest because we know we can keep any gains that we might ea...
QUESTION: <ul><li>What do you think the 2 best aspects of capitalism and why? </li></ul>
ANSWER: <ul><li>Markets </li></ul><ul><li>Economic Freedom </li></ul><ul><li>Private Property Rights </li></ul><ul><li>Com...
QUESTION: <ul><li>unlimited wants and limited resources lead to what? </li></ul>
ANSWER: <ul><li>scarcity </li></ul>
QUESTION: <ul><li>draw a diagram to show the choices all societies have to face.  </li></ul>
ANSWER: <ul><li>Unlimited wants  limited resources </li></ul><ul><li>  Scarcity </li></ul><ul><li>Choices all societies ha...
QUESTION: <ul><li>What is the difference between human capital and physical capital? </li></ul>
ANSWER: <ul><li>Human capital is the knowledge necessary for manufacturing products, and physical capital is the tools you...
QUESTION: <ul><li>What is the definition of a market? </li></ul>
ANSWER: <ul><li>A market is a place where goods and services are bought and sold. Free and willing exchange </li></ul>
QUESTION: <ul><li>What is a command economy? </li></ul>
ANSWER: <ul><li>A command economy is an economy in which the government controls all decisions. </li></ul>
QUESTION: <ul><li>What is an entrepreneur? </li></ul>
ANSWER: <ul><li>An entrepreneur is an individual who starts their own business. </li></ul>
QUESTION: <ul><li>Why do societies have to choose how to produce? </li></ul>
ANSWER: <ul><li>People also have to decide How to produce, because there are many different options available in order to ...
QUESTION: <ul><li>Why do societies have to choose for whom to produce? </li></ul>
ANSWER: <ul><li>They must ask this, for they have to figure out how goods and services  will be distributed among the citi...
QUESTION: <ul><li>What are trade off’s? </li></ul>
ANSWER: <ul><li>Alternative decisions between one thing to another. </li></ul>
QUESTION: <ul><li>Give 2 examples of how the price of stock changes (not Supply and Demand </li></ul>
ANSWER: <ul><li>rumors of possible takeover/ merger,  </li></ul><ul><li>tech breakthrough  </li></ul><ul><li>success of th...
QUESTION: <ul><li>What are the 2 ways a person can make $ off of the stock </li></ul>
ANSWER: <ul><li>Dividends and Capital Gains </li></ul>
QUESTION: <ul><li>What is The Factor Market? </li></ul>
ANSWER: <ul><li>Market where productive resources are bought and sold. It’s where individuals can earn money. People provi...
QUESTION: <ul><li>What is the Product Market? </li></ul>
ANSWER: <ul><li>market where producers offer goods and services for sale </li></ul>
QUESTION: <ul><li>What is the main purpose of the Factor Market? </li></ul>
ANSWER: <ul><li>The main purpose of the Factor Market is to provide the Factors of Production to businesses so they may pr...
QUESTION: <ul><li>If two people with different income spend the same amount of money on gas, why is this regressive tax? <...
ANSWER: <ul><li>Because if your income is higher, your percentage is lower, and if you make less your percentage higher ma...
QUESTION: <ul><li>What type of tax rate is this if all people are taxed 20% of their income? </li></ul>
ANSWER: <ul><li>Proportional Tax </li></ul>
QUESTION: <ul><li>In a progressive tax, who is taxed more? </li></ul>
ANSWER: <ul><li>Rich </li></ul>
QUESTION: <ul><li>What are Food Stamps? </li></ul>
ANSWER: <ul><li>Money given to people in poverty to buy food </li></ul>
QUESTION: <ul><li>What is WIC? </li></ul>
ANSWER: <ul><li>WIC provides money to women, infants, and children who are under 5 to buy necessary items, and food </li><...
QUESTION: <ul><li>What should happen to wealth in socialism? </li></ul>
ANSWER: <ul><li>distributed equally throughout society based on some sort of method or formula </li></ul>
QUESTION: <ul><li>What would a socialist world transform? </li></ul>
ANSWER: <ul><li>Human Nature </li></ul>
QUESTION: <ul><li>What are the two types of Collective Ownership? </li></ul>
ANSWER: <ul><li>Communal Ownership and State Ownership </li></ul>
QUESTION: <ul><li>WHERE do people earn their wages? </li></ul>
ANSWER: <ul><li>IN the FACTOR market </li></ul>
QUESTION: <ul><li>the business sector makes goods and services for us to purchase in the product market. The business sect...
ANSWER: <ul><li>why are there arrows going both ways between the business sector and the product MARKET? </li></ul>
QUESTION: <ul><li>What is a Factor market and what is a product market? </li></ul>
ANSWER: <ul><li>a factor market is where people earn wages in exchange for labor.  A product market is where producers off...
QUESTION: <ul><li>What is the business sector and what is the consumer sector? </li></ul>
ANSWER: <ul><li>the business sector receives payments for making goods and services for us to purchase. The consumer secto...
QUESTION: <ul><li>why does the arrow pointing to the foreign sector go both ways?  </li></ul>
ANSWER: <ul><li>because we sell products around the world but we also buy from around the world as well!  </li></ul>
QUESTION: <ul><li>what does the government give to the product market and what does it take from it?  </li></ul>
ANSWER: <ul><li>the government provides local services and it buys goods and services for war and such.  </li></ul>
QUESTION: <ul><li>What is the key principle of Laissez-Faire Economics? </li></ul>
ANSWER: <ul><li>The government should have minimal interference and only interfere to promote competition </li></ul>
QUESTION: <ul><li>What is a Natural Monopoly? </li></ul>
ANSWER: <ul><li>a market situation in which the costs of production are minimized, or lessened, by having a single firm pr...
QUESTION: <ul><li>When does a natural monopoly usually happen?  </li></ul>
ANSWER: <ul><li>usually happens when there are numerous companies competing for a service in which it requires items on pu...
QUESTION: <ul><li>What type of tax is social security? </li></ul>
ANSWER: <ul><li>A payroll tax that is only taken by the government </li></ul>
QUESTION: <ul><li>Who receives Social Security benefits? </li></ul>
ANSWER: <ul><li>The Elderly, the retired, and the disabled </li></ul>
QUESTION: <ul><li>What is mandatory spending? </li></ul>
ANSWER: <ul><li>spending that DOES NOT need to be approved annually by the government </li></ul>
QUESTION: <ul><li>What is discretionary spending? </li></ul>
ANSWER: <ul><li>spending that DOES need to be approved annually by the government. </li></ul>
QUESTION: <ul><li>What do entrepreneurs do?  </li></ul>
ANSWER: <ul><li>start new businesses, introduces new products and improves processes </li></ul>
QUESTION: <ul><li>What are some examples of natural resources? </li></ul>
ANSWER: <ul><li>surface land, water, fish, animals, forests, and mineral deposits </li></ul>
QUESTION: <ul><li>What are wants? </li></ul>
ANSWER: <ul><li>things we would like to have, such as entertainment, vacations, and other items that make life more comfor...
QUESTION: <ul><li>What is the definition of Economics? </li></ul>
ANSWER: <ul><li>the study of how we make decisions in a world in which resources are limited. </li></ul>
QUESTION: <ul><li>What is an economic system? </li></ul>
ANSWER: <ul><li>way of producing the things its people want and need. </li></ul>
QUESTION: <ul><li>What is marginal benefit? </li></ul>
ANSWER: <ul><li>the  additional  satisfaction or benefit received when one more unit is produced. </li></ul>
QUESTION: <ul><li>What is the BEST Kind of “GOOD” to buy? </li></ul>
ANSWER:
GOOD LUCK WITH YOUR STUDIES! <ul><li>Eat a good breakfast! </li></ul><ul><li>Go to Sleep early! </li></ul><ul><li>Take Stu...
Upcoming SlideShare
Loading in …5
×

I Form Exam Review

699 views
634 views

Published on

Published in: Education, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
699
On SlideShare
0
From Embeds
0
Number of Embeds
94
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

I Form Exam Review

  1. 1. I FORM EXAM REVIEW A student generated review for the final exam.
  2. 2. LEGAL DISCLAIMER <ul><li>***This should serve as a STUDY AID – and should not be the sole study technique that you use to prepare yourself for the exam. </li></ul><ul><li>***The accuracy of these notes may be in question...it is user generated – like Wikipedia – so I would make sure that I double checked everything and crossed reference any questionable areas. </li></ul><ul><li>***There are concepts on the exam that ARE NOT INCLUDED on this webpage – so do not think for a second that you can just study with this.... </li></ul>
  3. 3. <ul><li>67 QUESTIONS. </li></ul><ul><li>STARTS......NOW!!!! </li></ul>
  4. 4. QUESTION: <ul><li>How do you find the total costs? </li></ul>
  5. 5. ANSWER: <ul><li>Fixed costs + variable costs </li></ul>
  6. 6. QUESTION: <ul><li>The amount of money it takes to produce “one more unit” is called what cost? </li></ul>
  7. 7. ANSWER: <ul><li>Marginal cost </li></ul>
  8. 8. QUESTION: <ul><li>What are examples of fixed costs? </li></ul>
  9. 9. ANSWER: <ul><li>Mortgage, property taxes </li></ul>
  10. 10. QUESTION: <ul><li>define marginal revenue </li></ul>
  11. 11. ANSWER: <ul><li>change in the total revenue that results from selling “one more unit” </li></ul>
  12. 12. QUESTION: <ul><li>What effects does a contraction (or in some cases, recession) have on the economy </li></ul>
  13. 13. ANSWER: <ul><li>The unemployment rate rises, factories cut back on producing, and the economy as a whole is affected. </li></ul>
  14. 14. QUESTION: <ul><li>What happens at the economic peak? </li></ul>
  15. 15. ANSWER: <ul><li>Factories are producing at full capacity, the unemployment rate is low, and the economy is doing well. </li></ul>
  16. 16. QUESTION: <ul><li>What does an ideal or typical business cycle look like? </li></ul>
  17. 17. ANSWER: <ul><li>It is very inconsistent, constantly rising and falling in motions called expansions, peaks, contractions or recessions, and troughs. Then the cycle restarts. </li></ul>
  18. 18. QUESTION: <ul><li>Name three different levels of governments in our country </li></ul>
  19. 19. ANSWER: <ul><li>Federal </li></ul><ul><li>State </li></ul><ul><li>Local </li></ul>
  20. 20. QUESTION: <ul><li>Name 3 of the 4 things that are expenditures of State governments </li></ul>
  21. 21. ANSWER: <ul><li>Intergovernmental expenditures, Entitlement programs, Public Welfare, or Subsidizing </li></ul>
  22. 22. QUESTION: <ul><li>Name 3 of the 4 thing that are expenditures of Local government </li></ul>
  23. 23. ANSWER: <ul><li>Education, Fire and police protection, Water supply or Sewage and sanitation </li></ul>
  24. 24. QUESTION: <ul><li>The Factor of Demand, Changes in Income is tied closely to how the _______ is doing? </li></ul>
  25. 25. ANSWER: <ul><li>Economy </li></ul>
  26. 26. QUESTION: <ul><li>Price of Related Goods states that if Coca-Cola prices go up, Pepsi demand goes _______? </li></ul>
  27. 27. ANSWER: <ul><li>UP! </li></ul>
  28. 28. QUESTION: <ul><li>In Changes in Expectations people guess the question ______ </li></ul><ul><ul><li>If there might be a surplus? </li></ul></ul><ul><ul><li>When will Jay Kelly get it? </li></ul></ul><ul><ul><li>Is the Marginal Cost greater then Marginal Revenue? </li></ul></ul><ul><ul><li>What will the future bring? </li></ul></ul>
  29. 29. ANSWER: <ul><ul><li>D: What will the future bring? </li></ul></ul>
  30. 30. QUESTION: <ul><li>If price of DVD player goes down, demand for DVD’s goes ________? </li></ul>
  31. 31. ANSWER: <ul><li>UP! </li></ul>
  32. 32. QUESTION: <ul><li>What is GDP? </li></ul>
  33. 33. ANSWER: <ul><li>is the total value of all the final goods and services produced in a country in one year. </li></ul>
  34. 34. QUESTION: <ul><li>How do we find GDP? </li></ul>
  35. 35. ANSWER: <ul><li>To find GDP, we multiply the price of every good or service in a country by the amount of that good or service and add everything up. </li></ul>
  36. 36. QUESTION: <ul><li>What are some weaknesses of GDP? </li></ul>
  37. 37. ANSWER: <ul><li>Many other things raise a country’s well-being without raising GDP, such as reduction in crime and drug and alcohol abuse. It is also just an estimate of the value of goods or services, and is only accurate only to a point. For example, some workers may be given food, fuel, or housing as part of their wages, while others aren’t. Furthermore, GDP measures quantity , not quality , and there is a great difference between an appliance today compared to a few years ago. </li></ul>
  38. 38. QUESTION: <ul><li>What is NDP and why is it a better way to measure standard of living? </li></ul>
  39. 39. ANSWER: <ul><li>NDP takes GDP, and factors in depreciation. Depreciation is wear and tear to durable goods that lowers their quality over time. For example, a new car is worth more than the same car 5 years later. </li></ul>
  40. 40. QUESTION: <ul><li>What is price ceiling? </li></ul>
  41. 41. ANSWER: <ul><li>A price ceiling is where the government says that the price of a good or service cannot go above a certain amount. </li></ul>
  42. 42. QUESTION: <ul><li>What is an example of price ceiling? </li></ul>
  43. 43. ANSWER: <ul><li>An example of a price ceiling is on the rent of buildings in New York City. </li></ul>
  44. 44. QUESTION: <ul><li>What is a price floor? </li></ul>
  45. 45. ANSWER: <ul><li>A price floor is when the government says the price cannot go below a certain amount. </li></ul>
  46. 46. QUESTION: <ul><li>What is an example of a price floor? </li></ul>
  47. 47. ANSWER: <ul><li>An example is the minimum wage. </li></ul>
  48. 48. QUESTION: <ul><li>What are the six aspects of capitalism? </li></ul>
  49. 49. ANSWER: <ul><li>Markets, economic freedom, private property rights, competition, profit motive, and voluntary exchange </li></ul>
  50. 50. QUESTION: <ul><li>What does competition lead to? </li></ul>
  51. 51. ANSWER: <ul><li>Competition between buyers and sellers keeps the cost of production low and the quality of the goods higher than they would otherwise be. </li></ul>
  52. 52. QUESTION: <ul><li>What does private property rights five us the incentive to do? </li></ul>
  53. 53. ANSWER: <ul><li>It gives us the incentive to work, save, and invest because we know we can keep any gains that we might earn. </li></ul>
  54. 54. QUESTION: <ul><li>What do you think the 2 best aspects of capitalism and why? </li></ul>
  55. 55. ANSWER: <ul><li>Markets </li></ul><ul><li>Economic Freedom </li></ul><ul><li>Private Property Rights </li></ul><ul><li>Competition </li></ul><ul><li>Profit Motive </li></ul><ul><li>Voluntary Exchange </li></ul><ul><li>Which ones did you pick? </li></ul>
  56. 56. QUESTION: <ul><li>unlimited wants and limited resources lead to what? </li></ul>
  57. 57. ANSWER: <ul><li>scarcity </li></ul>
  58. 58. QUESTION: <ul><li>draw a diagram to show the choices all societies have to face. </li></ul>
  59. 59. ANSWER: <ul><li>Unlimited wants limited resources </li></ul><ul><li> Scarcity </li></ul><ul><li>Choices all societies have to face </li></ul><ul><li>What How For whom </li></ul>
  60. 60. QUESTION: <ul><li>What is the difference between human capital and physical capital? </li></ul>
  61. 61. ANSWER: <ul><li>Human capital is the knowledge necessary for manufacturing products, and physical capital is the tools you will need to make the products. </li></ul>
  62. 62. QUESTION: <ul><li>What is the definition of a market? </li></ul>
  63. 63. ANSWER: <ul><li>A market is a place where goods and services are bought and sold. Free and willing exchange </li></ul>
  64. 64. QUESTION: <ul><li>What is a command economy? </li></ul>
  65. 65. ANSWER: <ul><li>A command economy is an economy in which the government controls all decisions. </li></ul>
  66. 66. QUESTION: <ul><li>What is an entrepreneur? </li></ul>
  67. 67. ANSWER: <ul><li>An entrepreneur is an individual who starts their own business. </li></ul>
  68. 68. QUESTION: <ul><li>Why do societies have to choose how to produce? </li></ul>
  69. 69. ANSWER: <ul><li>People also have to decide How to produce, because there are many different options available in order to obtain a certain item, and businesses/individuals want to make the most logical, productive (and cheap) way to obtain these items </li></ul>
  70. 70. QUESTION: <ul><li>Why do societies have to choose for whom to produce? </li></ul>
  71. 71. ANSWER: <ul><li>They must ask this, for they have to figure out how goods and services will be distributed among the citizens </li></ul>
  72. 72. QUESTION: <ul><li>What are trade off’s? </li></ul>
  73. 73. ANSWER: <ul><li>Alternative decisions between one thing to another. </li></ul>
  74. 74. QUESTION: <ul><li>Give 2 examples of how the price of stock changes (not Supply and Demand </li></ul>
  75. 75. ANSWER: <ul><li>rumors of possible takeover/ merger, </li></ul><ul><li>tech breakthrough </li></ul><ul><li>success of the company </li></ul>
  76. 76. QUESTION: <ul><li>What are the 2 ways a person can make $ off of the stock </li></ul>
  77. 77. ANSWER: <ul><li>Dividends and Capital Gains </li></ul>
  78. 78. QUESTION: <ul><li>What is The Factor Market? </li></ul>
  79. 79. ANSWER: <ul><li>Market where productive resources are bought and sold. It’s where individuals can earn money. People provide the 4 Factors of Production </li></ul>
  80. 80. QUESTION: <ul><li>What is the Product Market? </li></ul>
  81. 81. ANSWER: <ul><li>market where producers offer goods and services for sale </li></ul>
  82. 82. QUESTION: <ul><li>What is the main purpose of the Factor Market? </li></ul>
  83. 83. ANSWER: <ul><li>The main purpose of the Factor Market is to provide the Factors of Production to businesses so they may produce more goods and services </li></ul>
  84. 84. QUESTION: <ul><li>If two people with different income spend the same amount of money on gas, why is this regressive tax? </li></ul>
  85. 85. ANSWER: <ul><li>Because if your income is higher, your percentage is lower, and if you make less your percentage higher making it a regressive. </li></ul>
  86. 86. QUESTION: <ul><li>What type of tax rate is this if all people are taxed 20% of their income? </li></ul>
  87. 87. ANSWER: <ul><li>Proportional Tax </li></ul>
  88. 88. QUESTION: <ul><li>In a progressive tax, who is taxed more? </li></ul>
  89. 89. ANSWER: <ul><li>Rich </li></ul>
  90. 90. QUESTION: <ul><li>What are Food Stamps? </li></ul>
  91. 91. ANSWER: <ul><li>Money given to people in poverty to buy food </li></ul>
  92. 92. QUESTION: <ul><li>What is WIC? </li></ul>
  93. 93. ANSWER: <ul><li>WIC provides money to women, infants, and children who are under 5 to buy necessary items, and food </li></ul>
  94. 94. QUESTION: <ul><li>What should happen to wealth in socialism? </li></ul>
  95. 95. ANSWER: <ul><li>distributed equally throughout society based on some sort of method or formula </li></ul>
  96. 96. QUESTION: <ul><li>What would a socialist world transform? </li></ul>
  97. 97. ANSWER: <ul><li>Human Nature </li></ul>
  98. 98. QUESTION: <ul><li>What are the two types of Collective Ownership? </li></ul>
  99. 99. ANSWER: <ul><li>Communal Ownership and State Ownership </li></ul>
  100. 100. QUESTION: <ul><li>WHERE do people earn their wages? </li></ul>
  101. 101. ANSWER: <ul><li>IN the FACTOR market </li></ul>
  102. 102. QUESTION: <ul><li>the business sector makes goods and services for us to purchase in the product market. The business sector buys goods and services from the product market so it can make more stuff for us to purchase. </li></ul>
  103. 103. ANSWER: <ul><li>why are there arrows going both ways between the business sector and the product MARKET? </li></ul>
  104. 104. QUESTION: <ul><li>What is a Factor market and what is a product market? </li></ul>
  105. 105. ANSWER: <ul><li>a factor market is where people earn wages in exchange for labor. A product market is where producers offer goods and services for sale! </li></ul>
  106. 106. QUESTION: <ul><li>What is the business sector and what is the consumer sector? </li></ul>
  107. 107. ANSWER: <ul><li>the business sector receives payments for making goods and services for us to purchase. The consumer sector is where people receive goods and services for money. </li></ul>
  108. 108. QUESTION: <ul><li>why does the arrow pointing to the foreign sector go both ways? </li></ul>
  109. 109. ANSWER: <ul><li>because we sell products around the world but we also buy from around the world as well! </li></ul>
  110. 110. QUESTION: <ul><li>what does the government give to the product market and what does it take from it? </li></ul>
  111. 111. ANSWER: <ul><li>the government provides local services and it buys goods and services for war and such. </li></ul>
  112. 112. QUESTION: <ul><li>What is the key principle of Laissez-Faire Economics? </li></ul>
  113. 113. ANSWER: <ul><li>The government should have minimal interference and only interfere to promote competition </li></ul>
  114. 114. QUESTION: <ul><li>What is a Natural Monopoly? </li></ul>
  115. 115. ANSWER: <ul><li>a market situation in which the costs of production are minimized, or lessened, by having a single firm produce the product </li></ul>
  116. 116. QUESTION: <ul><li>When does a natural monopoly usually happen? </li></ul>
  117. 117. ANSWER: <ul><li>usually happens when there are numerous companies competing for a service in which it requires items on public land (most likely telephone lines or a water distributer). </li></ul>
  118. 118. QUESTION: <ul><li>What type of tax is social security? </li></ul>
  119. 119. ANSWER: <ul><li>A payroll tax that is only taken by the government </li></ul>
  120. 120. QUESTION: <ul><li>Who receives Social Security benefits? </li></ul>
  121. 121. ANSWER: <ul><li>The Elderly, the retired, and the disabled </li></ul>
  122. 122. QUESTION: <ul><li>What is mandatory spending? </li></ul>
  123. 123. ANSWER: <ul><li>spending that DOES NOT need to be approved annually by the government </li></ul>
  124. 124. QUESTION: <ul><li>What is discretionary spending? </li></ul>
  125. 125. ANSWER: <ul><li>spending that DOES need to be approved annually by the government. </li></ul>
  126. 126. QUESTION: <ul><li>What do entrepreneurs do? </li></ul>
  127. 127. ANSWER: <ul><li>start new businesses, introduces new products and improves processes </li></ul>
  128. 128. QUESTION: <ul><li>What are some examples of natural resources? </li></ul>
  129. 129. ANSWER: <ul><li>surface land, water, fish, animals, forests, and mineral deposits </li></ul>
  130. 130. QUESTION: <ul><li>What are wants? </li></ul>
  131. 131. ANSWER: <ul><li>things we would like to have, such as entertainment, vacations, and other items that make life more comfortable and enjoyable. </li></ul>
  132. 132. QUESTION: <ul><li>What is the definition of Economics? </li></ul>
  133. 133. ANSWER: <ul><li>the study of how we make decisions in a world in which resources are limited. </li></ul>
  134. 134. QUESTION: <ul><li>What is an economic system? </li></ul>
  135. 135. ANSWER: <ul><li>way of producing the things its people want and need. </li></ul>
  136. 136. QUESTION: <ul><li>What is marginal benefit? </li></ul>
  137. 137. ANSWER: <ul><li>the additional satisfaction or benefit received when one more unit is produced. </li></ul>
  138. 138. QUESTION: <ul><li>What is the BEST Kind of “GOOD” to buy? </li></ul>
  139. 139. ANSWER:
  140. 140. GOOD LUCK WITH YOUR STUDIES! <ul><li>Eat a good breakfast! </li></ul><ul><li>Go to Sleep early! </li></ul><ul><li>Take Study Breaks every 30-45 minutes! </li></ul><ul><li>Find time to EXERCISE! </li></ul><ul><li>RELAX! </li></ul>

×