Economics

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Economics Chapter 2 Review Game
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(No Transcript)
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A reason for doing something. .
INCENTIVE
A1
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Dollar amount that remains after the costs of
doing business have been met. .
Profit
A2
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Pictorial Daily Double
Criminal
USAMA
A3
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A person who takes a risk to create a new product
or to develop a better way to operate a business.
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Entrepreneur
A4
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The use of prices to allocate (spread out) scarce
resources.
A reason for doing something.
Price System
A5
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This pillar of free enterprise calls for
individuals businesses to compete through
voluntary exchange. .
Market Competition
A6
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Pictorial Daily Double
Cartoon Character
Leonardo
A7
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Capital and other resources owned by individuals
or businesses rather than government.
Private Property
A8
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An economy that encourages Entrepreneurship
would?
Benefit from new products and improvements in
production.
A9
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John is a mechanic who owns a shop in Houston,
what is his incentive concerning Private
Property?
To use his tools and equipment carefully and
productively.
A10
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What economic roles do Households play in the
Circular Flow Model?.
Own resources, exchange labor for wages, and
purchase G S.
B1
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The people who use the goods and services that
businesses provide.
CONSUMERS
B2
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What can Businesses do to attract resources in a
Resource Market?.
Offer to pay the best wages or the make the best
offer for other resources.
B3
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Market where voluntary exchanges are between
consumers and businesses.
Goods Services
B4
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How do Households participate in the Goods
Services Market?
Spend their household income on Goods Services.
B5
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Audio Daily Double
Entertainer
Janet Jackson
B6
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What income comes into and leaves the Market for
Goods Services?
Household Income comes in and Business Income
leaves.
B7
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Parts B A
Resource (B) Business (A)
B8
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Parts E F
G S (E) Labor (F)
B9
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Parts C D
Business Household Income
B10
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Economy that relies on the traditions of a
culture to determine the what, how, and who
choices of the economy.
Traditional Economy
C1
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Economic system that has the government holding
most property rights, and determines the what,
how, and who.
Command Economy
C2
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This type of economy emphasizes private ownership
voluntary exchange, but allows government
intervention.
Mixed Economy
C3
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Which economic system stresses free enterprise as
a way of answering the basic question of what to
produce?
Market Economy
C4
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What is necessary for a pure Market Economy?
Private Ownership of ALL resources.
C5
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The critical role played by Profits in a
Market Economy?
Profits encourage businesses to efficiently
produce the things people want.
C6
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Which economic system is most descriptive of the
U.S. economic system? ?
Mixed Economy - A mix of government regulation
and free enterprise
C7
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In a Market Economy, prices provide important
information.
Often tell businesses the value consumers place
on different goods.
C8
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Pictorial Daily Double
Entertainer
Britney
C9
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The political system directly associated with the
economic system called Command Economy.
COMMUNISM
C10
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Shares of ownership in a company. .
STOCK
D1
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Income withheld from current spending for future
use and stored in a safe location.
SAVINGS
D2
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Investment tool that pools the money of
shareholders in a diversified portfolio of
securities
Mutual Fund
D3
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Payment received by stockholders from the
earnings of the corporation.
Dividend
D4
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The income made when the investor sells the stock
for more than the purchase price.
Capital Gain
D5
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Pictorial Daily Double
US President
Jefferson
D6
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Physical objects such as fine arts or stamps.
Collectibles
D7
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What advantages does a Mutual Fund offer when
compared to investing in stocks?
Diversification Professional Management
D8
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Certificate of a corporations or the
governments indebtedness to the holder.
BOND
D9
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Audio Daily Double
Entertainer
Kenny Chesney
D10
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Ease in which an investment can be converted into
cash.
LIQUIDITY
E1
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Concerning investing, if the investor wants
safety and liquidity, which should he choose?
Savings Account
E2
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General rise in prices of goods and services.
INFLATION
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The total increase or decrease of an investment
value.
RETURN
E4
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The possibility that an investment will lose
value.
RISK
E5
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Strategy for reducing risk by spreading
investment money among several investment types
and industries.
DIVERSIFICATION
E6
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Concerning investing, which investment would
offer safety but low liquidity?
Govt. Bonds
E7
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If looking for a Low Risk investment, what
would you suggest for an investor besides a
savings account?
Govt. Securities or Mutual Funds
E8
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When dealing with Liquidity, which investments
would have Low Liquidity?
Real Estate, Bonds, and Collectibles
E9
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If looking for a High Risk investment, what
would you suggest for an investor?
Collectibles or Volatile Stocks
E10
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There would be no competition if
there were no?
Scarcity
F1
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At the present time, the United States economy
is best described as?
MIXED ECONOMY
F2
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Adam Smith is closely associated with which
publication?
The Wealth of Nations
F3
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According to Adam Smith, how should an economy
function?
Unregulated by the government, but by peoples
self-interests
F4
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In a Market Economy, prices provide important
information. This means that if consumers bid up
the price of chocolate?
They are letting producers know they want more.
F5
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Video Daily Double
TV Land
Munsters
F6
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Concerning the Functions of Money, what is
meant by Medium of Exchange?
The use of money as a means to purchase goods and
services.
F7
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Concerning the Functions of Money, what is
meant by Store of Value?
Money has this ability if it is kept in a bank
and used for future use.
F8
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Which of the following best describes Adam
Smith's "invisible hand"?
Money has this ability if it is kept in a bank
and used for future use.
The use of voluntary exchange to
let an economy function.
F9
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To be useful, a Model of the economy must?
Include all possible information to make the
model as real as possible.
F10