BUSS100 CH1&2

Resource development is:

Adam Smith believed that countries would prosper if businesspeople were free to start and run their own businesses. Businesspeople would make a profit by providing the goods, services and ideas that others in the economy wanted, and they would hire others to help increase those profits, leading to social and economics benefits for many. This idea was called the __________.

In the boxed material "Making Ethical Decisions," the textbook describes corruption practices in developing nations. These practices include payoffs to government officials in order to get an edge on competing better in one's industry. Which of the following statements best describes the ethical message explained in this box?

________ is the name of a free-market economic system in which most of the factors of production and distribution - such as land, factories, railroads, and stores - are owned by individuals.

Which of the following is a basic right under capitalism?

In a free market economic system, the mechanism of __________ is the key determinant used to signal to producers what to produce and how much to produce.

The quantity of a good or service that producers are willing to sell at different prices during a specific time period is known as the:

A simple supply curve shows that an increase in the price of a good will cause the quantity supplied to:

A typical demand curve shows that:

When the supply curve and demand curve for a particular good are shown together on a single graph, the point at which the two curves intersect identifies the:

If a shortage exists for a good in a free-market economy, the:

The markets for laundry detergents, soft drinks, and automobiles are dominated by just a few sellers. Economists would classify these markets as examples of:

In most large cities there are a large number of bakeries. These bakeries produce similar, but not identical, products. Some bakeries claim to have the best cheesecakes in town, while others brag about their cookies or specialty breads. The bakery market in a large city is an example of:

The presence of competition in free markets:

One of the greatest concerns associated with capitalism is that:

Brain drain has occurred in many socialistic nations because:

Communism is an economic system in which:

The total value of final goods and services produced within a nation's borders in a given year is known as that nation's:

Efforts by the Federal Reserve Bank (the Fed) to control the money supply and interest rates are known as:

Fiscal policy involves increases or decreases in:

The "invisible hand" in Adam Smith's theory turns self-directed gain into social and economic benefits for all.

Capitalism is the foundation of the U.S. economic system.

The main goal of resource development is to find ways to:

The freedom of people to buy, sell, and use land, buildings, machinery, and inventions are basic capitalist rights under:

A free market is one in which decisions about what to produce and in what quantities are made by:

A simple supply curve shows a relationship between the:

An oligopoly is a market that is characterized by:

When the market price of a good is below the equilibrium price, and all other determinants are unchanged:

When the market price of a good is above its equilibrium value, and all other determinants are unchanged:

A major premise of a socialist system is: