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76 Cards in this Set
- Front
- Back
The inability to satisfy all wants at the same time
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scarcity
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People have to make choices because resources are _______
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limited
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Factors of production that are used in the production of goods and services are called __________
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resources
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Name four types of resources
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natural, human, capital, entrepreneurship
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That which is given up when a choice is made is called _______ ____
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opportunity cost
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The amount of money exchanged for a good or service is the _______
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price
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______ are used to change economic behavior
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incentives
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What determines price?
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the interaction of supply and demand
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the amount of a good or service that consumers are willing and able to buy at a certain price
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demand
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the amount of a good or service thta producers are willing and able to sell at a certain price
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supply
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making goods or providing services
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production
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what determines what is produced
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resources available and consumer preferences
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the using of goods and services is known as _______
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consumption
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what determines what is purchased?
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consumer prefernce and price
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Name three major economic systems
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free market
command economy mixed economy |
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what makes on type of economic system different from others
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the extend of government involvement in economic decision making
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Characteristics of a _______ _____ economy are private ownership of property and resources; profit; competition; consumer sovereignty and individual choice
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free market
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this economic system is the most common in the world today. the government plays a bigger roll that in a free market economy, but less of a role that in the commany economy
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mixed economy
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in a mixed economy individuals and business are the decision makers for the ____ sector, and government is decision maker in the ______ sector.
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private--- public
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a form of business organization with one owner who takes all the risks and all the profits
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proptietorship
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who does the economic decision- making in the U.S.
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it's share by individuals, business and government
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name five characterisitcs of the U.S. economy
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free markets; private property; profit; competition; consumer sovereignty
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one characteristic of the u.s. economy is free markets. this means:
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markets are allowed to operate without undue interference from the government
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one characteristic of the u.s. economy is private property. this means:
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individuals and businesses have the right to own personal property as well as the means of production without undue interference from the government
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one characteristic of the u.s. economy is profit. profit consists of:
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earnings after all expenses have been paid
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characteristics of a ____ economy are central ownership of property and resources; centrally-planed econmy; lack of consumer choice
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command
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what would be the benefit for a business owner of turning his business into a corporation
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if the business fails, the owner won't lose his personal savings because his liability is limited to investment
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in the u.s economy, what flows continuously among households, businesses and markets
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resources, goods and services
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what do individual and business savings do for the economy?
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provide financial capital that can be borrowed for business expansion and increased consupmtion
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businesses (producers) buy ______; make products that are sold individuals, other businesses, and the government; and use the profits to buy more ______.
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resources--- resources
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governments use _____ ______ from individuals and businesses to provide public gods and services.
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tax revenue
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how do financial institutions like banks encourage saving and investing?
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private financial institutions act as intermediaries between savers and borrowers
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what are some examples of private financial institutions
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banks, savings and loans, credit unions, and securities brokerages
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banks receive deposits and make ________.
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loans
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worldwide markets, buying and selling of goods and services by all nations.
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global economy
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why the united states trade with other nations
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to increase wealth
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why do states and nations trade?
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to obtain goods and services the cannot produce or produce effieciently themselves
to buy goods and services at a lower costs or a lower opportunity cose to sell goods and services to other countries to create jobs |
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louisiana and the united states ______ in the production of certain goods and services
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specialize
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one characteristic of the u.s. economy in competition. this means-
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rivalry between producers/sellers of a good or service results in better quality goods and services at a lower price
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one characteristic of the u.s. economy is consumer sovereignty. this means:
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consumers determine through purchases, what goods and services will be produced
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free markets are markets that are allowed to operate without ______ ___ from the government.
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undue interference
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competition results in:
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better quality goods and services at a lower price
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in the U.s., who determines thorugh purchases, what goods and services will be produced?
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consumers
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a form of business organization with one owner who takes all the risks and all the profits
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proprietorship
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a form of business organization with tow or more owners who share the risks and the profits
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partnership
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a form of business organization that is authorized by law to act as a legal person regardless of the number of owners. owners sharethe profits. owner liability is limited to investment.
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corporation
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a person who takes a risk to produce goods and services in search of profit.
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entrepreneur
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in a proprietorship, who takes all the risks and all the profits?
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a single owner
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a business partnership has _____ ____ who share the risks and the profits?
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two or more owners
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a corporation is a from of business that is authorized by law, regardless of the number of owners, to act as:
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a legal person
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in which from of business is owner liability limited to investment?
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corporation
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what is the impact of technological innovation on world trade?
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contribute to the golbal flow of information, captial, goods, and services; lowers the cost of producion
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the government both promotes and regulates _______.
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competition
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how does the government promotes marketplace competition?
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enforcing antitrust legislation to discourage the development of monopolies
engaging in global trade supports business start-ups |
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the government promotes competition by enforcing ______ legislation to discourage the development of monopolies
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antitrust
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what are some examples of public goods and services?
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interstate highways, postal service, and national defense
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how do governments get the money to produce public goods and services?
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through tax revenue and through borrowed funds
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where does congress get the authority to tax personal and business incomes?
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16th amendment
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the government can ______, _____, and ______ to influence economic activity.
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tax, borrow and spend
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government _____ ______ reduce the funds for private and business spending.
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tax increases
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government _____ ____ increase funds for pricate and business spending.
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tax decreases
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increased government spending ______ demand, which may _____ employment and production.
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increases, increase
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___________ government spending reduces demand, which may result in a ______ of the economy
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less, slowing
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increased government spending may result in _____ taxes
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higher
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decreased government spending may result in ____ taxes
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lower
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the FED is the-
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federal reserve system
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the Fed is the _____ _____ of the United States.
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central bank
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the Fed regulates the
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money supply
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the reserve bank acts as a banker's bank by issuing currency and regulating the amount of ______ in circulation.
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money
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what does the Fed do to slow the economy?
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the fed can restrict the money supply, causing interest rates to rise
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why would the Fed incerase the money supply, causing interest rates to decline?
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to stimulate the economy
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what are three ways the Federal Reserve Bak can slow the economy?
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increase in the reserce requirement; raise the discount rate; sell government securities
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what are three ways the Federal Reserve Bank can stimulate the economy?
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lower the reserve requirement; lowers the discount reate; purchases government securities
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how does the U.S. government protect consumer rights and property rights
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the government passes laws and creates agencies to protect consumer rights and property rights
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how is public health and safety protected?
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government agencies establish guidelines that protect public health and safety.
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what kind of advancements create new jobs in the workplace?
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technological advancements
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