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Introduction to Economics quiz #7 Flashcards

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Introduction to Economics quiz #7
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  • What is market information management?
    It is the process of collecting and analyzing market data.
  • What is the term for selling related products?
    Cross-selling.
  • What is one of the advantages of globalization?
    Globalization increases market access and efficiency.
  • Why might going to college be a good financial decision?
    College can increase earning potential.
  • In which type of market would you find it the most difficult to buy goods from another country?
    A closed or command economy.
  • What is one advantage and one disadvantage of the global economy for American workers?
    Advantage: more job opportunities; disadvantage: increased competition.
  • Which economic trend occurred under President Eisenhower?
    Economic growth and infrastructure expansion.
  • What is a traditional economy?
    A traditional economy relies on customs and barter.
  • Which of these situations are more likely to happen in a bad economy?
    Rising unemployment and lower incomes.
  • Which situation best reflects the concept of free enterprise?
    A person starting a business to sell products.
  • What advantages does money have over bartered goods? Check all that apply.
    Money is divisible, portable, and widely accepted.
  • How did the transcontinental railroad affect US commerce?
    It expanded markets and reduced transportation costs.
  • Which of the following behaviors are more likely to happen in a bad economy?
    Reduced spending and increased saving.
  • What is economic utility?
    Economic utility is the satisfaction gained from consuming goods or services.
  • Which was an economic effect of the Treaty of Versailles?
    It imposed reparations and economic hardship on Germany.
  • What is one purpose of studying economics?
    To make informed decisions about resource use.
  • In a free enterprise system, who makes most economic decisions?
    Individuals and businesses make most decisions.
  • Which example best describes how a bank injects money into the economy?
    Making loans to businesses and consumers.
  • What is a cash crop?
    A crop grown for sale rather than personal use.
  • If the government and central bank don’t use economic policy, what might happen?
    Economic instability and prolonged recessions.
  • Which economic indicator represents all the things you buy or do with your money?
    Consumer spending.
  • What was one advantage of the division of labor during the growth of industry?
    It increased efficiency and productivity.
  • Based on 'economy' from Walden, what is Thoreau's view of economic activity?
    Thoreau values simplicity and self-sufficiency.
  • Which is an advantage of using modern currency instead of a barter system?
    Currency simplifies transactions and is widely accepted.
  • When you hear the word 'money', what does it represent in economics?
    Money represents a medium of exchange.
  • The cotton gin was introduced in 1793. What was the effect of this invention in the US?
    It increased cotton production and demand for labor.
  • What is GDP?
    GDP is the total value of goods and services produced in a country.
  • The Embargo Act of 1807 had which of the following effects on the United States?
    It reduced trade and hurt the economy.
  • What is laissez-faire economics?
    Laissez-faire economics advocates minimal government intervention.
  • Which philosopher is most associated with the market economy?
    Adam Smith.
  • Which of these is a major advantage of a market economy?
    Efficient allocation of resources.
  • What percent of U.S. energy comes from nonrenewable energy sources?
    About 80% comes from nonrenewable sources.
  • Which type of economy is most prevalent in the world today?
    Mixed economies are most prevalent.
  • What are consumers?
    Consumers are individuals who buy goods and services.
  • What are two components of laissez-faire economics?
    Free markets and limited government.
  • What is a war of attrition?
    A prolonged conflict where each side tries to wear down the other.
  • What was the market revolution?
    The market revolution was a shift to a more market-based economy in the US.
  • What is the product market?
    The product market is where goods and services are bought and sold.
  • Is economics a social science?
    Yes, economics is a social science.
  • What type of economy do you have if the gross domestic product (GDP) is growing?
    A growing economy.