Unit 1 Review Game Economic Fundamentals SSEF 1

Unit 1 Review Game Economic Fundamentals SSEF 1 -6

Rules 1) Each team gets a dry erase board and marker 2) Each team to raise the correct answer in the air will earn 1 point. 3) Tally your points on your answer board. First place= +6 Third place= +4 Second place= +5 Fourth place= +3

Ready… Set… Here we go!

________ begin new businesses because they believe the potential rewards of success outweigh the potential costs associated with the risks.

Entrepreneurs

________ is a basic condition that exists when unlimited wants exceed limited productive resources

Scarcity

________ is the value of one’s next best alternative given up when a choice is made

Opportunity Cost

Rational actors in the economy will only select a choice if the marginal ______ of it are equal to or greater than the marginal _______ of the action.

Benefits/costs

A fast food restaurant that uses division of labor when one employee takes drive-thru orders, and one employee cooks the food while another employee wraps the food to give to the customer is a prime example of ___________.

Specialization

_______ occurs when two economic actors willingly trade one item for another because the value of the item they are receiving is greater at the time than the item they are giving up to receive it.

Voluntary Exchange

Economic systems must answer these 3 questions of production? - What to make? - How to make it? - _________

Who do we produce it for?

In a _______ economic system, the answers to the questions are determined by the interactions of buyers and sellers in the market with very little to no government intervention.

Market

In a ________ economic system, the questions are answered by a central authority or government

Command

In a market economy, individuals and firms own all the factors of production. There is also a high level of competition because firms can freely open and close businesses. Competition benefits consumers with _______ prices.

Lower

Economic growth is measured by GDP. Typical growth for the U. S. is ____% GDP growth per year.

2 -3%

If the U. S. economy is stable, GDP growth is around 3% and _______ rate is between 4 -6%.

Unemployment

Governments in the United States provide ______ goods and services only when there is a reason that the market is unable to provide the good or service at a level considered beneficial to society

public

________ involves taking tax money from one group of individuals or firms and giving it to other individuals and firms. Example: welfare payments

Redistribution of income

Increasing taxes or regulations on companies that pollute would be an example of the government _________ ______.

Resolving Market failures

Economic growth occurs when countries invest in physical capital and _____ capital.

Human

On the production possibilities frontier, point A represents

Inefficient production

Points B, C, and D represent…

Efficient Production

Prior to starting a new business, entrepreneurs evaluate their ability to generate _______ which is calculated as a firm’s revenue minus its costs.

Profits

In England, the government owns industries such as the airline, TV stations, hospitals, universities, and defense contractors. However, most other industries are privately owned firms that compete for business. England can BEST be described as having a ______ economy.

Mixed

Tradeoffs, opportunity costs, marginal benefits, marginal costs and personal priorities are all important to consider when making a _______ decision.

rational

The study of how individuals, firms (businesses), and nations can best allocate their limited resources is called ________

Economics

When the government upholds intellectual property laws such as copyrights and patents, they are ______

Protecting private property

A cost due to an increase in activity is called a

Marginal cost

Mary decides to produce and sell apple juice. She leases an apple orchard and renovates her kitchen to produce and bottle the apple juice. Mary hires three employees. Two employees will maintain the apple orchard and bottle the juice, and one will market the apple juice using the Internet. In the manufacture and sale of apple juice, what factor of production does Mary represent?

Entrepreneur

An economic system in which there is little innovation, little profit motive, and government own the means of production and property

Command economy

Opportunity cost means individuals make decisions that require them to _____the next best alternative.

Give up

The relationship of inputs to outputs is

productivity

Government agencies inspect restaurants on a regular basis to ensure the restaurants are obeying health and food safety regulations. Therefore, they charge _____ prices to cover the costs of the time and resources used in meeting the regulations.

higher

When governments break up ________ and try to address shortages or surpluses, they are serving the role of resolving market failures.

monopolies

At a restaurant you may find a host, waiter, bus person, cook, and dishwasher. This is an example of the economic principle of ___________.

Division of labor

Market economies allocate resources by ______.

price

An allocation strategy that we deal with on a daily basis is ________________, ______ when others get the good or service before us.

First come, first serve

Lower prices for consumers, more efficiency and innovation by producers, and less overall government influence in a market are all effects typically associated with government ______.

deregulation

If the government raises the excise tax on gasoline making it more expensive, people will act predictably by the negative ______ and most likely take fewer vacations.

incentive

Economic growth of a country can be seen on the PPC going outward to the _____.

right

_______ leads to a need for voluntary exchange.

Specialization

The marginal revenue a business owner earns comes from producing _____ more product.

one

Lettuce, onions, tomatoes, and potatoes would all be considered ____ resources used by a restaurant.

land

If you had two job offers from Walmart and Target, and you choose to work at Target, then your opportunity cost is what you could’ve had working at ____.

Walmart

In a pure market economy (NO _______ INTERVENTION), any projects to improve society would be paid for by those who are willing to pay for them.

Government

BONUS QUESTION: 10 POINTS (All or nothing) Part 1: What banking/finance law did the U. S. government repeal in 1999? Part 2: Was this repeal an example of regulation or deregulation?