Unit 2 Econ

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

Select all that apply. Select the items that describe voluntary exchanges. A. trading money for a car B. bartering baseball cards C. being forced to give up your lunch D. occurs between individuals and countries

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

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

Select all that apply. Two Wheel Bicycle Company increased its market share from 10 percent to 25 percent during one year. Select statements that could be true as a result of this increase. A. Two Wheel Bicycle manufactures more bicycles. B. Employees get a raise. C. Two Wheel Bicycle increases its advertising budget. D. The owner opens another Two Wheel Bicycle store.

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

Select all that apply. Which of the following economic questions involve the consumer? A. Who will consume the goods and services? B. What goods and services will be produced? C. How will the goods and services be produced?

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

Select all that apply. Select the items that support the statement: Consumer preferences affect how producers make goods. A. buying organic products and non-GMO foods B. purchasing products made from recycled materials C. 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.

Both the satisfaction of creating new products and the possibility of earning money are _____ for an entrepreneur. A. risks B. incentives C. innovations

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. A. 50 cents B. $1.00 C. $2.00

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

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

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

Select all that apply. Select the items that describe incentives for an employee to accept a job offer. A. High wages B. Expensive commute C. Very long workdays D. Good benefit package E. 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 _____. A. minimum wage B. education C. 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? A. There was serious competition for tech jobs at the downtown clinic. B. The new technology at the uptown clinic was too difficult for the staff to understand. C. The doctors pitted the staff of one clinic against the staff at other clinic. D. The staff at the downtown clinic saw that their colleagues at the uptown clinic were treated better and had more opportunity.

Bartering is the exchange of goods and services without the use of _____. A. revenue B. regulations C. money

A place where people exchange goods and services is called a _____. A. competitor B. market C. value

Voluntary exchanges happen when both parties expect to _____. A. gain B. lose C. barter

Markets distribute goods and services based on _____. A. revenue B. price C. profits

Made-Up Music owns 25 percent of the music market. Twenty-five percent refers to this company's _____. A. market costs B. free market C. market share

Rajiv is a person whose wants are satisfied by using goods and services. Rajiv is a _____. A. producer B. consumer C. entrepreneur

Select all that apply. Which of the following economic questions involve a consumer? A. What goods and services will be produced? B. Who will buy the goods and services? C. How will the goods and services be produced?

Something that people put money into in hopes of making more money is called a(n) _____. A. fad B. return C. investment

You learn that a popular shoe company, FABSHOES, has factories overseas where the employees are treated badly and in some cases beaten. As a consumer, how could you impact the producers to change the way they treat their employees? A. you tell your parents and they stop buying shoes B. you tell the store that stocks the shoes about what you've learned C. you scratch out the name of the company on your shoes so people won't think you've bought FABSHOES D. you and your friends get a campaign together to protest by urging friends to stop buying FABSHOES

Consumers are willing and able to buy goods and services. This describes the ________ of these goods and services.

Select all that apply. Inventors and entrepreneurs are: A. are often one and the same B. never work well together C. both have the skills to quickly sell the product they invented D. can work together to innovate products and bring them to stores E. often need one another to start new companies

Entrepreneurs and other producers accept risks because they hope to earn _____. A. prices B. patents C. profits

Losing money and working long hours are _______________ for an entrepreneur.

Lower production costs can allow companies to _____. A. charge lower prices B. make less profits C. sell fewer products

Labor is a _____ used to produce goods and services. A. salary B. reference C. human resource

Select all that apply. Brian is considering a job offer. Incentives for taking the job may include _____. A. long commute B. high salary C. benefit package D. safe work environment E. manageable work schedule

People receive income by exchanging human resources for ________ or ______________ .

Employers want workers that provide the _____. A. highest returns B. lowest productivity C. fewest references

Some employers, labor unions, and _____ can help workers receive fair pay and safe work environments. A. natural resources B. consumers C. the government

What is a short-term benefit for a company to regularly keeping wages low? A. Employees find high job satisfaction. B. Companies can expect a high turn-over. C. Employees will become demoralized. D. The company can keep costs to a minimum.

Select all that apply. Select the items that describe antitrust laws. A. created to prevent monopolies B. intended to promote competition C. can have unintended consequences D. create one-company industries E. encourage price setting to maximize profits

Property rights are _____. A. agreements enforceable by law B. privileges to decide how resources are used C. legal obligations to repay a debt

Which of the following situations is an example of the kind of decision a government would make in regard to its property rights? A. Should Jan expand her marketing business? B. Is Sam's Save N Sell Store treating its employees fairly? C. Should this land be used to build a library? D. Should students be required to wear uniforms?

Select the true statement about standards for weights and measures. A. Sales of products or services impacted by weights and measures laws in the US represent a small proportion of output. B. A pound of flour from the Fluffy Flour Company will be the same weight as a pound of flour from another company. C. Companies owned by private individuals do not have to follow the standards. D. Standards often wind up discouraging the exchange of goods in the economy.

Select all that apply. Select items that affect incentives for people to produce and exchange goods and services. A. liability rules B. property rights C. contract enforcement D. standards for weights and measures

Select all that apply. Select the items granted by the government to provide intellectual property rights. A. Piracy B. Intangible assets C. Copyrights D. Trademarks E. 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. A. More innovations B. More economic growth C. More job opportunities D. More sales to other countries E. More piracy opportunities

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

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

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

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

Which type of money would be hardest to travel with? A. commodity money B. fiat money C. representative money D. foreign money

Which type of money is based only on faith? A. commodity money B. fiat money C. representative money D. foreign money

Which form of money is NOT used in the U.S.? A. $50 bills B. Dollar coins C. Euros D. 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 A. 101.96 B. 1.0853 C. 12.8575

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

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

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

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

Money encourages specialization by decreasing the ________________ __________ .

To maintain effective levels of competition in as many markets as possible, the government enforces _______________ __________ .

A _______________ is a company that owns most of its market share and can set its own price.

Shoe for All Company was a monopoly. But then competition was allowed to enter its market. As a result of this competition, the prices at Shoe for All Company were likely to: A. rise B. drop C. remain the same

A legal obligation that involves repaying a debt is called a _____. A. liability B. profit C. property right

Knowing that you are buying one pound of bread is part of _____. A. contract enforcement B. property rights C. standards for weights and measures

A song is an example of a(n) ______________ _____________ .

The government protects the rights of inventors by issuing _____. A. copyrights B. patents C. trademarks

Knowledge that gives a producer an economic advantage over other producers is called a _____. A. trade secret B. trademarks C. patents

By providing intellectual property rights, a government provides people with the incentives to ______ money.

A patent protects inventors by: A. Giving away the invention free to the public. B. Setting up a company for the inventor to make her product. C. Keeping others from using the invention without the permission of the inventor. D. Making certain the inventor is paid well for her invention.

The amount of one currency that can be traded for a unit of another currency is called the _____. A. market price B. exchange rate C. one-for-one rate

When Ricky sells his used desk for $50, money is a _____. A. medium of exchange B. store of value C. unit of account

Julio is given $10 in allowance money. He heads down to the store and finds two games that he can buy. In comparing the prices of these goods, Julio is using money as a _____. A. medium of exchange B. store of value C. unit of account

Forms of money in the United States consist of paper money, coins, and _____. A. bartering B. minting C. checking account balances

Select all that apply. Select the items that apply to money made from precious metals and paper. A. easily divisible B. valuable C. durable D. hard to transport

Bartering involves exchanging goods and services. But today, ________ can be exchanged for goods and services.

In a barter economy ______. A. a fair exchange is always given B. you place the value on the goods you want to barter C. you always have something that someone wants to barter for D. you never get the better end of the deal

In a world of bartering, Naomi produces a lot of goods on her own. In a world with money, she can _______________ her dream of teaching.

A set of written directions that tell a bank how to use money to pay someone is called a __________ .

Money encourages specialization by _______________ exchange costs.

When the U.S. dollar goes up against the British Pound, it could be a result of _____. A. poor government relations B. an increase in the trade deficit C. speculation on Wall Street D. trouble in the Leadership of the US Department of Treasury

Which of the following is not a problem with commodity money? A. value B. portability C. uniformity D. divisibility

Select all that apply. Select the producers that have earning profits as a main goal. A. small firms B. corporations C. 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 _____. A. the benefits of the people who work for these businesses B. the amount of goods and services that consumers purchase C. the quantity of capital raised to pay for expenses

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

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

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

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

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

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

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

The two main sources of government revenue are _________ ______ _________________ .

A budget deficit is the _____. A. revenue earned by the government B. amount overspent in a certain time C. 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? A. entrepreneur B. corporation C. government D. banks

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

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

Select the items that are jobs of the Federal Reserve. A. increase personal and sales taxes B. manage risk in the financial markets C. watch banks and protect customers D. provide banking services E. influence the money supply

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

Economies of scale involve decreasing ______________ ________ as output rises.

How might a battered women's shelter organize differently from a skateboard shop? Select all that apply. A. the skate shop might borrow enough money to open while the women's shelter might seek investors who could profit from the investment B. the skate shop might hire highly qualified employees while the women's shelter might advertise for help at the local high school newspaper C. the women's shelter would look for space that could temporarily house women and children where a skate shop would look for property that had a secure storage space for stock D. a skate shop would have a solid profit and loss strategy and a women's shelter would developed a clear fundraising strategy E. a skate shop's main focus would be on goods, a women's shelter's main focus would be on services

Which of the following are capital sources for corporations? Select all that apply. A. issuing stocks B. issuing bonds C. private donations D. loans E. grants

_____________________________ are established primarily for religious, health, educational, civic, or social purposes and are exempt from certain taxes.

Which of the following is interest meant to do? A. help you pay for college B. enable a bank to cover expenses C. bring profit the lender D. deter you from borrowing too much

Someone who wants to make a safe (not risky) investment might consider putting his or her money into _____ or _____. A. stocks, the bank B. stocks, bonds C. bonds, the bank

When banks make loans, they put more money into the economy. This increases the _____. A. money supply B. interest rates C. stock prices

Banks channel money from savers to borrowers to _____. A. investors B. the government C. scarce resources

Select the sources of tax revenue for federal, state, and local governments. Select all that apply. A. personal income B. sales C. payroll D. education

The two revenue sources for the government are _____ and _____. A. taxes and spending B. taxes and interest C. taxes and borrowing

Fiscal policy refers to changes in tax levels and government _____. A. loans B. spending C. revenue

The Federal Government is NOT responsible for which of the following? A. providing public roads B. raising taxes on the top 1% C. renovating the Florida state house d. setting limits on how much the federal government can borrow

The central bank in the United States is called the _____. A. Federal Reserve B. Federal Government C. Federal Money

The Federal Reserve offers banking services to which of the following? Select all that apply. A. other banks B. U.S. government C. foreign countries

Open-market operations involve _____ and _____ securities to influence the money supply. A. investing, selling B. buying, borrowing C. buying, selling

During times of economic growth, people are buying ___________ goods and services.

When a central bank influences the growth of the money supply, it is carrying out _____. A. monetary policy B. fiscal policy

Why is saving money for expensive items you want to purchase a smart financial choice? A. You sacrifice some money now for greater benefits later. B. It is financially responsible to focus on short-term goals rather than long-term goals. C. There are no opportunity costs involved in saving money. D. The rewards for saving are high profits rather than using credit or debt.

Good Guy received his home loan for $200,000. Determine which of the following was the mortgage company's most important reason for giving him his loan. A. the neighborhood in which the home is located B. budget plan of how the payments will be made C. the total value of current assets and all income D. the referral from other clients of the company

If a student wants to be considered for financial aid, who is required to fill out the FAFSA? A. the school counselor B. your senior advisor C. the student with parent or guardian assistance D. the school superintendent's office

The Higher Education Act of 1965 created programs to do which of the following? A. provide grants for college educations B. provide loans for college educations C. provide work-study programs for college tuition D. all of these answers

If the government buys new firetrucks, the government is participating in which market? A. firms B. household C. factor D. product