Economics Unit 2

to exchange goods and services without the use of money

person or group that rivals another

to trade, or a market where buyers and sellers interact

place where buyers and sellers exchange goods and services

a company's sales divided by the total sales in the industry over a certain period of time

to exchange goods and services, with or without the use of money

an item's worth

willing

A market _____. exists whenever buyers and sellers exchange goods and services does not involve monetary transactions to buy goods and services only includes squares set up in towns to sell goods and services

Ben wants to sell his used couch to Pam. Ben and Pam will trade the couch for money, if both individuals expect to _____. lose buy gain

The interaction between buyers and sellers in the marketplace leads to goods and services being distributed by _____. market share price force

When people buy something, they value it ________ than it costs them. But, when people sell something, they value it ______________ than the payment they receive.

person whose economic wants are satisfied by using goods and services

the willingness and ability of consumers to buy a good or service

goods and services that become popular very quickly and then lose their popularity very fast

something that people put their money into because they hope to make more money in the future

money earned on an investment

A consumer uses goods and services to _____. make products using fair trade earn money by selling them satisfy economic wants

Consumers influence how goods and services are made by _____. selling organic products, such as fruits choosing which goods and services to buy producing goods made from recycled materials

Select all that apply. Select the items that support the statement: Consumer preferences affect how producers make goods. buying organic products and non-GMO foods purchasing products made from recycled materials consuming food made in a fair trade way

Gum and candy are often for sale right next to cash registers. This buying situation encourages consumers to use their money to make ________ purchases.

money used for an economic purpose, such as investment

person who organizes other productive resources to make goods and services

when an invention becomes usable in a way that has economic value

to make a new product

person who makes goods and services

the chance that things will turn out differently than expected

Entrepreneurs and other sellers ____________ when buyers purchase the product they sell at prices more than high enough to cover the costs of production.

You are running a business, and each good that you produce costs $1.50. In order to earn a profit, you could choose a price of _____ for your product. 50 cents $1.00 $2.00

Select all the items that describe an entrepreneur. can invent new products can start new businesses takes on risks hopes to lose money can create jobs

Select the true statement(s) about entrepreneurs. Entrepreneurs usually wind up making a lot of money. A small business owner may be an entrepreneur and a producer. Entrepreneurs believe they can make a profit from their invention. Entrepreneurs usually work longer hours than most people.

human resource that is used to produce goods and provide services

the amount of output that comes from a unit of input

people who comment on a person's character and qualifications

price of labor, usually expressed on a yearly basis

price of labor, often given on an hourly, daily, or weekly basis

Select all that apply. Which of the following phrases describe labor? Not part of the production process Earns wages or salaries A human resource and factor of production Used to produce goods and services Includes teachers, pilots, and doctors

Select all that apply. Select the items that describe incentives for an employee to accept a job offer. High wages Expensive commute Very long workdays Good benefit package Safe work environment

Employers are willing to pay ________ and __________ to workers, because they expect to be able to sell the goods and services at prices high enough to cover the costs of production.

Factors that improve human capital and can increase labor productivity include choosing a career, training, and _____. minimum wage education production costs

___________ productive workers are likely to be of greater value and earn higher wages than ___________ productive workers.

Considering the case of the two health clinics above, why do you think that trouble was brewing? There was serious competition for tech jobs at the downtown clinic. The new technology at the uptown clinic was too difficult for the staff to understand. The doctors pitted the staff of one clinic against the staff at other clinic. The staff at the downtown clinic saw that their colleagues at the uptown clinic were treated better and had more opportunity.

sole right to publish or sell a form of artistic work

cannot be touched

intangible assets that result from creativity

sole right granted to an individual who invents a good or service

theft of intellectual property

payment to a person with a copyright or patent for the right to use that person's product

can be touched

word or words, symbol, or design that identifies a certain good or service

something that gives a producer an economic advantage over other producers

Select all that apply. Select the items granted by the government to provide intellectual property rights. Piracy Intangible assets Copyrights Trademarks Patents

A movie writer can ____________ a movie script in order to benefit financially from that creation.

The government defines, establishes, and __________ property rights.

By establishing property rights, governments provide _______ for people to create new goods and services.

Select all that apply. Select the items that describe potential benefits of providing intellectual property rights. More innovations More economic growth More job opportunities More sales to other countries More piracy opportunities

bank service that allows people to keep their money in the bank and to take out the money on demand

paper money of a certain value

amount of one currency that can be traded for a unit of another currency

the process of stamping out a coin from metal

items that are widely accepted as final payment for goods and services; also called currency

Select all that apply. Select the items that describe the benefits of coins and paper money. easy to carry valuable easily divisible wear out easily

When money is deposited in the bank for later use, it is a _____. medium of exchange store of value unit of account

When you use paper money to pay for food, the money is a _____. medium of exchange store of value unit of account

When you compare the prices of two different pairs of shoes, money is a _____. medium of exchange store of value unit of account

Which type of money would be hardest to travel with? commodity money fiat money representative money foreign money

Which type of money is based only on faith? commodity money fiat money representative money foreign money

Which form of money is NOT used in the U.S.? $50 bills Dollar coins Euros Checking account deposits

Based on the exchange rate table below, one U.S. dollar is able to buy _____ Mexican pesos. Japan YEN 101.96 China YUAN 6.2471 Mexico PESO 12.8575 Canada DOLLAR 1.0853 101.96 1.0853 12.8575

Which of the following statements are true? Select all that apply. The amount of one currency that can be traded for a unit of another currency is the exchange rate. Many exchange rates float, or constantly change. It is best to travel abroad when the exchange rate gets you more units of a foreign currency. Units of currency from different countries have the same value.

Which is not an important determining factor in the value of the American dollar on the currency in international markets? A stable government Inflation Interest rates The balance of export/imports Its representative value

a set of written directions that tells a bank how to use money to pay someone

what is given up from trading or bartering

relating to money

focusing on one area

Money makes trading easier by replacing ________ with transactions involving paper money, coins, and checks.

Select the statement that is not true about bartering. Bartering can be more time-consuming than trading with money. Bartering encourages specialization. It's difficult to determine fair values for goods and services.

Select all that apply. What do producers use to make goods and services? money natural resources human resources capital goods

Select all that apply. What do people consume to satisfy their economic wants? goods money services factories

Money encourages specialization by decreasing the __________ .

decreasing the average cost of each good as output increases

money used for investments

monetary aid given by another organization (such as the government or corporations)

organizations established mainly for religious, health, educational, civic, or social purposes

Select all that apply. Select the producers that have earning profits as a main goal. small firms corporations not-for-profit organizations

Select all that apply. Select the organizations that use grants as a means to raise money. small firms corporations not-for-profit organizations

Sally works for a big corporation because she wants to earn a high salary. Fred works for a not-for-profit organization because he wants to help people in medical need. This illustrates that the goals of different organizations affect _____. the benefits of the people who work for these businesses the amount of goods and services that consumers purchase the quantity of capital raised to pay for expenses

Corporations have more ways to raise __________ to pay for productive resources than small firms or not-for-profit organizations.

If an empty building costs nearly a million dollars to purchase, which organization would likely be the most able to purchase it? small business corporation not-for-profit organization

amount of money in a bank account

type of security that is issued for a certain amount

financial institutions whose funds come mainly from deposits

price of money borrowed or saved

money to be paid back under certain terms

chance that things will turn out differently than expected

The cost of borrowing money is called _____. risk deposit interest

If you take out a $30,000 student loan at 6%: you will only need to pay back the amount you borrowed you will need to pay back only the interest on the amount you borrowed once you graduate you will have a monthly payment of about $255 each month for the next 15 years your parents are liable for your debt

Select all that apply. Select the items that can result in higher interest earned. higher interest rate higher balance greater number of withdrawals

Select all that apply. Select the items that are considered low risk investments. stocks bonds bank accounts

Individuals and companies respond to incentives in order to allocate their scarce resources in ways that provide the ___________ possible returns to them.

amount of money that a government overspends in a certain amount of time

decisions to change spending or tax levels by the federal government

item that can be used by everyone, provides benefits to more than one person at a time, and whose use cannot be restricted to only those people who have paid to use it

fees that the government charges on products, activities, or income

Select all that apply. Select all the items that are public goods or services. roads education military police force

The two main sources of government revenue are ________ .

A budget deficit is the _____. revenue earned by the government amount overspent in a certain time the effects of fiscal policy

What person or organization will usually supply goods and services when it appears that the benefits to society outweigh the costs to society? entrepreneur corporation government banks

Select all that apply. Select the items that describe possible effects of incentives for political leaders. favor programs with immediate benefits implement policies that favor a small, powerful group provide policies whose costs outweigh the benefits favor programs with immediate costs

a country's primary authority on areas related to money

the central bank of the U.S.

the influence of the central bank on the growth of the money supply

currency, coins, and checking-account deposits

a central bank's buying and selling of securities to influence the growth of the money supply

The Federal Reserve is the central bank of _____. Sweden the United States the European Union

The Federal Reserve helps protect people who borrow money to pay an expense by _____. enforcing the Truth in Lending Act lowering interest rates providing safe loans

When the Federal Reserve influences the growth of the money supply, it is carrying out _________.

Open-market operations are when the Federal Reserve buys and sells securities to influence the _____. reserve requirement tax rate money supply

rules that prevent the creation and behavior of monopolies

Select all that apply. Which of the following describe a kind of market participant? consumer producer entrepreneur labor

Both trading and bartering _____. involve money consist of trade secrets are voluntary exchanges

Select all that apply. Select all the items that describe the jobs of money. store of value tool of bartering unit of account medium of exchange

Select all that apply. Select all the items that describe factors that market participants face as part of the decision process. costs and benefits incentives and disincentives constraints and rules profit goals and laws

To help the economy grow, the federal government can _____. spend less money decrease tax levels raise interest rates