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Questions and Answers
Which term refers to the total value of all goods and services produced within a given period by a national economy through domestic factors of production?
Which term refers to the total value of all goods and services produced within a given period by a national economy through domestic factors of production?
- Gross national product
- Standard of living
- Gross domestic product (correct)
- Aggregate output
What measure indicates the prices of typical products purchased by American consumers living in urban areas?
What measure indicates the prices of typical products purchased by American consumers living in urban areas?
- Purchasing power parity
- Standard of living
- GDP per capita
- Consumer price index (correct)
How is productivity defined in an economic context?
How is productivity defined in an economic context?
- The improvement of living standards over time
- The output required to meet consumer demand
- The total value of all goods and services produced by a national economy
- The efficiency of resources used to produce goods and services (correct)
What economic condition is characterized by widespread increased prices without increased purchasing power?
What economic condition is characterized by widespread increased prices without increased purchasing power?
Which of the following best represents a stable economy where money supply and production increase at a similar rate?
Which of the following best represents a stable economy where money supply and production increase at a similar rate?
Which term describes the overall economic well-being of individuals in an economy, often related to income and living standards?
Which term describes the overall economic well-being of individuals in an economy, often related to income and living standards?
What does a high level of GDP per capita typically indicate about a country?
What does a high level of GDP per capita typically indicate about a country?
What is the primary purpose of using economic indicators?
What is the primary purpose of using economic indicators?
Which economic system relies on a centralized government to allocate resources?
Which economic system relies on a centralized government to allocate resources?
What type of economic system is characterized by private ownership of production?
What type of economic system is characterized by private ownership of production?
In which type of economy do consumers have significant freedom to choose where they work and what they buy?
In which type of economy do consumers have significant freedom to choose where they work and what they buy?
Which of the following is not a characteristic of a mixed market economy?
Which of the following is not a characteristic of a mixed market economy?
What is a key feature of a planned economy?
What is a key feature of a planned economy?
Which economy is most reflective of the system used in the United States?
Which economy is most reflective of the system used in the United States?
Which economic system may limit choice for consumers and workers?
Which economic system may limit choice for consumers and workers?
Which option is typically not associated with a capitalist economic system?
Which option is typically not associated with a capitalist economic system?
What is the price at which the quantity of goods demanded and the quantity of goods supplied are equal?
What is the price at which the quantity of goods demanded and the quantity of goods supplied are equal?
What occurs when the quantity demanded exceeds the quantity supplied?
What occurs when the quantity demanded exceeds the quantity supplied?
What is the primary force that determines what a firm buys and sells?
What is the primary force that determines what a firm buys and sells?
What is the willingness and ability of producers to offer a good for sale referred to as?
What is the willingness and ability of producers to offer a good for sale referred to as?
Which of the following is proven when buyers purchase more of a product when the price drops and less when the price increases?
Which of the following is proven when buyers purchase more of a product when the price drops and less when the price increases?
What is the impact when the supply of a good greatly increases while demand remains constant?
What is the impact when the supply of a good greatly increases while demand remains constant?
What happens to equilibrium price when demand decreases while supply remains constant?
What happens to equilibrium price when demand decreases while supply remains constant?
Which economic theory explains the relationship between the quantity of goods supplied and the price?
Which economic theory explains the relationship between the quantity of goods supplied and the price?
What is the primary goal of stabilization policy?
What is the primary goal of stabilization policy?
Which of the following is a key component of fiscal policy?
Which of the following is a key component of fiscal policy?
How does the government primarily implement monetary policy?
How does the government primarily implement monetary policy?
What distinguishes a recession from a depression?
What distinguishes a recession from a depression?
Which of the following is a method the government might use to restore economic stability?
Which of the following is a method the government might use to restore economic stability?
What does real GDP measure?
What does real GDP measure?
Which of the following factors can influence monetary policy?
Which of the following factors can influence monetary policy?
What situation typically leads economists to declare that an economy is in recession?
What situation typically leads economists to declare that an economy is in recession?
What type of economy is characterized by individual producers and consumers controlling production through supply and demand?
What type of economy is characterized by individual producers and consumers controlling production through supply and demand?
What is the key difference between various economic systems?
What is the key difference between various economic systems?
Which statement is true regarding the political-legal environment of an organization?
Which statement is true regarding the political-legal environment of an organization?
Which of the following statements about physical resources and data is correct?
Which of the following statements about physical resources and data is correct?
What does the technological environment consist of in a business context?
What does the technological environment consist of in a business context?
In a market system, how are individuals restricted in their purchasing and spending?
In a market system, how are individuals restricted in their purchasing and spending?
How does China's economy function with regard to its political system?
How does China's economy function with regard to its political system?
In which type of economic system is consumer choice not a primary factor?
In which type of economic system is consumer choice not a primary factor?
Flashcards
Planned Economy
Planned Economy
An economic system where the government controls the production and distribution of goods and services.
Market Economy
Market Economy
An economic system where individuals and firms decide what to produce, how to produce, and who gets the goods.
Mixed Market Economy
Mixed Market Economy
An economy combining elements of both market and planned economies.
Factors of Production
Factors of Production
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Capitalism
Capitalism
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Communism
Communism
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Socialism
Socialism
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Market Price
Market Price
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Shortage
Shortage
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Law of Demand
Law of Demand
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Supply
Supply
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GDP
GDP
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CPI
CPI
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Productivity
Productivity
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Inflation
Inflation
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Economic Expansion
Economic Expansion
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Fiscal Policy
Fiscal Policy
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Monetary Policy
Monetary Policy
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Recession
Recession
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Depression
Depression
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Study Notes
Economic Systems
- Planned economies rely on centralized government to allocate factors of production
- Market economies rely on individual producers and consumers to control production through supply and demand
- The US uses a mixed market economy
- The difference between economic systems is how factors of production are managed
- Capitalism emphasizes private ownership of production factors
- Communism emphasizes collective ownership of production factors
- Socialism emphasizes shared ownership of production factors
- The customs, values, and demographics of a society make up the political-legal environment, not the physical resources.
- Physical resources include land, labor, capital, and entrepreneurship.
- The technological environment is not limited to electronics and telecommunications, it encompasses the use of technology in business activities.
- Market systems allow individuals freedom in purchasing and spending
- The concept of a planned economy is not related to privatization, it is related to centralized control of production.
Supply and Demand
- The market price is the point where supply and demand are equal
- A shortage exists when the quantity demanded exceeds the quantity supplied
- Laws of supply and demand are the primary force that dictates what a firm buys and sells
- Supply refers to the willingness and ability of producers to offer a good for sale
- The law of demand shows that consumers purchase more of a product when prices drop and less when prices increase.
- Private enterprise is not the reason why firms buy and sell, they are driven by the laws of supply and demand.
Economic Performance
- GDP measures the total value of goods and services produced by a national economy
- The consumer price index (CPI) measures the prices of consumer goods in urban areas.
- Productivity measures the output generated with the resources needed.
- Inflation is a condition of rising prices without increased purchasing power.
- Economic expansion refers to the time period where money and goods and services are growing at approximately the same rate.
Government Economic Policies
- The US uses fiscal and monetary policies to manage its economy
- Fiscal policy manages government spending and revenue
- Tax policy is a component of fiscal policy
- Monetary policy aims to control the money supply
- The Federal Reserve System (the Fed) oversees monetary policy
- A recession is marked by a decline in real GDP and a depression is a prolonged and deep recession.
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Description
This quiz delves into various economic systems, including planned, market, mixed, capitalism, communism, and socialism. It explores how different systems allocate resources and the role of government versus individuals in production. Test your understanding of the factors that influence economic environments and their management.
