Question | Answer |
The inability to satisfy all of our wants at the same time because everything is limited. This requires us to make choices. | Scarcity
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factors of production that are used to make goods and services. Include natural, human, capital, and entrepreneurship (new ideas) | Resources
| selecting an item or action from a set of possible alternatives | Choice
| what we give up when we make a choice. | opportunity cost
| Buyers determine through their purchases what will be produced. A producer will not make something that no consumers are willing to buy. | Consumer Sovereignty
| Economy with private and public sector | mixed economy
| Economy with only public sector, no competition | command economy
| Economy with only private sector, no government | free market
| One owner takes all the risks keeps all profit | proprietorship
| Two or more owners share risk and profit | partnership
| Owners of a corporation are known as? | stockholders
| What do banks do with your money? | make loans
| How do banks make money? | charge interest on loans
| Why does the US participate in Global Trade? | To get goods and services that they cannot produce themselves To buy goods and services at a lower opportunity cost, To sell goods and services to other countries, To create jobs
| How does the government prevent monopolies? | antitrust laws
| How does the government regulate businesses? | by using government agencies like FCC, FDA, and FTC
| What is the difference between the public and private sector in the US? | public is run by the government uses tax dollars to pay for things like roads and schools, the private sector is owned by citizens like grocery stores, hair salons, and restaurants.
| What is the 16th amendment? | gives congress power to tax income
| The main job of the Federal Reserve? | maintain a stable economy
| What happens to spending and employment during a recession? | decreases
| What happens to spending and employment during inflation? | increases
| What happens to spending when the government raises taxes? | goes down
| What happens to spending when the government lowers taxes | goes up
| What happens to interest rates when the Federal Reserve makes banks increase the amount of money they keep in reserve? | rates go up, less loans given out
| Career planning starts with what? | self assessment
| Typically the higher your education the higher your ________? | Income
| What kind of workers do employers seek? | strong work ethic |