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Introduction to Economics quiz #17

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  • In a transitional economy, a(n) ________ economy is changing to a mixed-market economy.
    Command.
  • What is an example of a market economy (Everfi)?
    The United States.
  • Normal profit is also known as zero profit.
    True.
  • A mixed-market economy is best defined as an economy
    With both private and government involvement.
  • Benchmark polls definition
    Surveys measuring public opinion at a point in time.
  • Inflation will happen when demand far outweighs the supply.
    True.
  • In the long run, the most important source of increase in a nation's standard of living is a:
    Increase in productivity.
  • Why is it risky to invest in a commodity?
    Prices can be volatile.
  • What role do entrepreneurs play in economics (Everfi)?
    They create businesses and drive economic growth.
  • A trade deficit means a country is exporting more than it is importing.
    False.
  • The term that covers all expenditures by households on goods and services is known as ______ expenditures.
    Consumption.
  • The tax on the purchase of goods or services is called
    Sales tax.
  • During a severe recession, we would expect output to fall the most in
    Durable goods industries.
  • Citizens of developed nations typically experience __________.
    Higher standards of living.
  • The most common medium of exchange in modern economic systems is
    Money.
  • This scenario describes a tax system.
    A progressive, regressive, or flat tax system.
  • If the North American newsprint paper market has barriers to entry, then
    Few firms will dominate the market.
  • When interest rates are low, spending decreases.
    False; spending usually increases.
  • Angel investors are wealthy individuals who seek high returns through private investments.
    True.
  • Companies' emphasis on profits has resulted in
    Greater competition and innovation.
  • In order for the economy to be strong, businesses must _____.
    Grow and innovate.
  • Tax is what you pay on pretty much everything you buy.
    Sales tax.
  • What is a traditional economy?
    An economy based on customs and barter.
  • An entrepreneur can best be characterized as someone who
    Takes risks to start a business.
  • For new product marketers, early adopters are important because they tend to be
    Influential and willing to try new products.
  • What is prohibited in a command economy?
    Private ownership of resources.
  • Economic sectors AP Human Geography
    Primary, secondary, tertiary, and quaternary sectors.
  • It is rare for a completely new product to enter markets and be successful.
    True.
  • Includes the study of individual purchasing decisions.
    Microeconomics.
  • Competition helps create a healthy society by:
    Encouraging innovation and efficiency.
  • Additional revenue generated from the sale of a single unit
    Marginal revenue.
  • A commodity in which someone invests might include a
    Gold or oil.
  • To barter means to sell, create, trade, or earn?
    Trade.
  • One consequence of automation is that producers need fewer customers, machines, materials, or workers?
    Workers.
  • In a capitalist system, the government should its role in the economy.
    Limit.
  • Even if the economy is declining, the financial market can still do well.
    True.
  • An intervening opportunity is an example of a __________.
    Spatial interaction.
  • What is one way for an entrepreneur to decrease risk?
    Diversify products or services.
  • The compromise gave Congress the power to regulate trade.
    True.
  • A command economy in which the government controls everything is called
    Communism.