District Assessment Review

Master economics with this review! Covers terms, supply & demand, and more.

Matching Please match the terms with the correct description. Sole proprietorship Most common form of business organization Entrepreneur The owner of a washeteria. Labor Resource All of the people working to produce the product or service. Adam Smith Free market philosopher John Maynard Keynes Founder of demand-side economics. Expansion Phase of the business cycle where economic activity begins to rise. Real GDP (Gross Domestic Product) GDP expressed in constant prices Fill in the BlanksPlease use the word bank below to fill in the blanks. * In a free market, prices are determined by producers and consumers.* A corporation can more easily raise capital (money) than a single owner.* In a capitalist economy, businesses hope to earn a profit.* All economies struggle to balance limited resources with the needs of the people.* Marx and Engels' pamphlet "The Communist Manifesto" helped inspire the Russian Revolution.* The opportunity cost of buy a car is all the other stuff you would have purchased.* Economists agree that scarcity (not enough resources) is a common problem.* Government spending on the military instead of spending on social services is called guns or butter.* One of the goals of the United States economy is economic security.* Mikhail Gorbachev introduced perestroika (economic reforms) to the USSR Union.* When producers and consumers both feel like they made a good deal, it's known as voluntary trade.* The opportunity to earn more and own more is an incentive to work harder.* The United States, Canada, Mexico, Australia, and New Zealand all prefer the market economic system.* Having 2 or more owners is typical of a partnership.* Free market, free enterprise, and capitalism are all the same thing.* As the economy grows the, the standard of living improves.* Russia is associated with Marxism, Stalin, central planning, collectivization, and Vladimir Putin.* Macroeconomicsis the study of the economy as a whole. Microeconomics studies more specific parts of the economy.* People's work accidentally helping others while they intend to help only themselves is known as the invisible hand.* The 3 basic economic questions are what to produce, how to produce, and for whom to produce.* A command economy is completely controlled by the government.* Factors of production include land, labor, capital, and an entrepreneur.* An entrepreneur is the owner of the business. Keynesian economics advocated for government spending to help .... reduce inflation during the 1970s ease the effects of the business cycle promote international trade decrease business activity Which of the following is a true statement about the Great Depression? It was caused by overspending on government programs It had little impact on wealthy individuals It ended because of increased defense spending related to World War II It was a normal part of the business cycle Sole proprietorships tend to have limited... Liability Longevity Investment plans Growth potential If the consumers' income increases, the demand line for the new iPhone will shift... Upward Downward To the left To the right New technology makes the production of cars more efficient and less expensive. How will the affect the supply of cars? the supply will increase the supply will decrease the supply will remain the same the supply will flucuate. Which of the following is most used to determine the growth and health of the economy? Prime Interest Rate Real Gross Domestic Product Producer Price Index Consumer Price Index According the to theories of supply demand, a large increase in the supply of bread will... increase the demand for bread decrease the demand for bread increase the price of bread decrease the price of bread According to the theories of supply demand, if the cost of the resources used to make an iPhone increases, the supply of iPhones will... Stabilize Fluctuate Decrease Increase In a market economy, an increase in demand will generally cause the... Equilibrium quantity supplied to increase Equilibrium quantity demanded to fall Equilibrium price to fall Number of firms in the market to decline According to the "guns vs butter" example, if a country decides to spend more on military goods, which of the following will happen? The country will have less money to spend on consumer goods. The country will have an equal amount of money to spend on consumer goods. The country will be forced to make trade-offs in military purchasing. The country will have more money to spend on consumer goods. Which term describes the phase of the economic decline occurring for 6 months or more in the business cycle? Peak Recession Depression Expansion What is the main form of communication between producers and consumers in a free-enterprise market? Incentives Costs Prices Profits The price ceiling that is used to control the price of housing in New York City is called... Rent abatement Rent control Housing control Equilibrium price The minimum wage is an example of Black market Rationing system Price floor Price ceiling How do corporations raise money? By issuing stock By issuing bonds Borrowing from banks All of the above