Question | Answer |
What do the three economic questions have in common? | all of the involve goods and services
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What are the three main factors of productions? | land and resources, capital, and labor
| What is demand? | the desire for a certain good or service
| What is supply? | the amount of a good or service
| What is an example of an incentive? | money
| Why are markets necessary? | they provide an organized way for producers and consumers to exchange goods and services
| What is the difference between revenue and profit? | Revenue is the money a producer gets from selling a good/service and profit is the money left over after subtracting the costs from revenue
| How does inflation affect prices? | causes prices to rise over time
| What is a recession? | a decline in economic growth for six or more months in a row
| How do people reach economic decisions in a traditional economy? | They rely on their traditions and customs to tell them what to do
| What are the four types of economies? | command, mixed, traditional, and market
| Name four factors that economists use to calculate how developed a country is. | education, literacy, life expectancy, and purchasing power
| What is technology? | the practical application of knowledge used to accomplish a task
| Are there more developed or developing countries in the world? | developing
| If US companies buy chocolate from Switzerland and sell it to American consumers, is the chocolate an import or export? | import
| What is a tariff? | a tax on imports or exports
| What is free trade? | the removal of trade barriers
| Why is a budget a necessary tool? | helps you see what you are spending and saving
| Which is buying a bond similar to, giving a gift or getting an IOU? | IOU
| How do banks function? | Banks keep money, make loans, and offer other financial services, they pay interest on deposits and charge interest on loans
| What is stock? | a share of ownership in a company |