Exam 2: Understanding Basic Economics

Demand curves typically slope downward.This implies that a(n)________.

________ is the study of how a society uses its scarce resources to produce and distribute goods and services.

A business owner has to decide whether the company should purchase new manufacturing equipment,open a new retail store in another city,or invest in a major advertising campaign. -The value of the most appealing alternative that the business owner did not choose is its ________.

The economic system of the U.S.is such that individuals own and operate the majority of businesses with limited economic intervention by the government.This is characteristic of a ________ economy.

________ is a situation in which no single firm is large enough to influence prices and distort the workings of the free-market system.

Leading economic indicators suggest changes that may happen in the economy in the future.

The U.S.government's use of Blackwater Security Consulting,a military security company,to guard officials and military installations in Iraq is an example of ________.

Macroeconomics studies economic behavior among consumers,businesses,and industries that collectively determine the quantity of goods and services demanded and supplied at different prices.

Economics is the study of how a society uses its scarce resources to produce and distribute goods and services to its citizens.

Demand refers to the quantities of a good or service that producers will provide on a particular date at various prices.

The study of a country's larger economic issues,such as how firms compete,the effect of government policies,and how an economy maintains and allocates its scarce resources,is known as ________.

In a country,the state owns all major productive resources from electricity to transportation.The country has very few opportunities for entrepreneurship and the economic classes are absent.The economy of this country is characterized by which of the following economic systems?

Deciding how much money to spend on new manufacturing equipment versus launching a new advertising campaign is described as opportunity cost.

Which of the following is a distinct characteristic of a pure monopolistic economy?

________ is a steady rise in the average prices of goods and services throughout the economy.

Compare and contrast between free-market systems and planned systems.

As social equality is a major goal of planned systems,private enterprise and the pursuit of private gain are encouraged.

While gross domestic product (GDP)considers where the production occurs,________ considers who is responsible for the production.

A ________ is an economic system in which individuals and companies are largely free to decide what products to produce,how to produce them,whom to sell them to,and at what price to sell them.

In a country,the government owns many of the key industrial sectors,such as transportation,health care,and communications.Private ownership,however,is allowed in other industries.What type of economic system does this country have?