Economics Overview Quiz

Economics

• The study of how individuals, businesses, and governments allocate scarce resources

Scarcity

• The state where resources are insufficient to meet demand

Need

• A requirement for survival or well-being

Want

• A desire for something, tangible or intangible

Margin/ “On Margin”

• The practice of borrowing funds to purchase securities, allowing for an investor to buy more than their capital allows

Competition

• The effort of two or more parties to acquire a resource or customer

Free Market Economy

• Production and pricing of goods determined by unrestricted competition

Centrally Planned Economy

• Government controls all decisions related to production and distribution

Traditional Economy

• Customs and traditions dictate production and distribution

Mixed Economy

• Combines elements of capitalism and socialism

Regulatory Agencies

• Government authorities enforcing rules for safety and fairness

Redistribution Programs

• Government initiatives that transfer income and wealth from affluent groups to those in need

Market Failure

• Allocation of goods and services is inefficient

Public Good

• Commodity or service available to everyone without diminishing its availability

Externality

• Cost or benefit of an economic activity experienced by an unrelated third party

Opportunity Cost

• Value of the next best alternative forgone when making a decision

Consumer Sovereignty

• Principle that consumers dictate goods and services produced through demand

Specialization

• Process of becoming highly skilled in a specific area

Factors of Production

• Essential resources used to create goods and services:
  • Land
  • Labor
  • Capital
  • Entrepreneurship

Types of Market Systems

• Traditional
• Command
• Market
• Mixed

Goals of a Free Market Economy

• Efficient allocation of resources through supply and demand
• Fostering innovation and competition
• Maximizing consumer choice
• Promoting economic growth

Expectations of a Consumer

• High-quality products and services
• Efficient support
• Personalized experiences

Advantages of a Free Market Economy

• User-friendly, simplifying spatial data workflows
• Significant reduction in manual effort
• Minimized operator errors

Disadvantages of a Free Market Economy

• Slower performance than database-specific tools because it extracts and processes data locally

Consumer Safety in a Mixed Market

• Government regulations
• Industry standards
• Consumer advocacy groups

Role of Government in Market Systems

• Mixed Economy: Regulates and intervenes to promote social welfare and correct market failures, while also allowing for private enterprise
• Centrally Planned Economy: Controls all economic decisions, determining production and distribution
• Free Market System: Minimal role, primarily ensuring property rights and enforcing contracts

Test your knowledge on basic concepts in economics such as scarcity, needs versus wants, and various economic systems. This quiz covers fundamental principles that are essential for understanding how resources are allocated in different types of economies.