Social Studies 7-12 PACT Questions And Answers With Verified Solutions

Free Trade - Answer-the ability for one country to trade with another without hindrance so that all goods can be produced with the greatest efficiency Sole Proprietorships - Answer-a business where a single person acts as the owner and operator of the business with no distinction between the person and the business Comparative Advantage - Answer-the ability to produce a good at a lower opportunity cost than another producer Market - Answer-a space in which goods are exchanged Perceived Value - Answer-how desirable a product is to the consumer Law of Demand - Answer-as the price of a good increases, the less quantity of the good will be demanded Price Controls - Answer-A maximum price set by the government allowed to be charged for a particular good Tariff - Answer-a tax placed on a specific type of imported or exported good Factor Market - Answer-a market in which the factors of production are bought and sold. (labor market) Absolute Advantage - Answer-The ability of an entity to produce more of a good or service than another entity using the same amount of resources Monopoly - Answer-A market where one firm controls the price, production, and supply of a good Means of Production - Answer-The non-human resources used to produce goods in an economyOligopoly - Answer-A market where only a few sellers are present Cost-Benefit Analysis - Answer-Consideration of what one gains and loses from a set of economic choices Interdependence of Economies - Answer-all economies require each other to function Economies of Scale - Answer-a reduction in the price of per-unit production resulting from producing more at once (buying raw materials in bulk) Mixed Economy - Answer-a market economy with varying levels of government intervention Opportunity Cost - Answer-The cost of the next best opportunity a person gives up when they make an economic choice Communism - Answer-A political theory and economic system in which all property is publicly owned and each person works and is paid according to their abilities and needs. Factors of Production - Answer-The determinants of when and where economic activity can and most likely will occur: land, labor, capital, and entrepreneurship Traditional Economy - Answer-An economy where goods are produced mainly for consumption by one's own family and traded or bartered in only the most basic ways Scarcity - Answer-In Economics, the fact that there are not enough resources to fulfill all human needs and desires Law of Supply - Answer-as the price of a good increases, a greater quantity of the good will be supplied Trade - Answer-the exchange of products for money between entitiesSlopes - Answer-the rates at which the curves increase or decrease Surplus - Answer-when the quantity supplied is greater than the quantity desired Trade Barriers - Answer-obstacles to trade (government regulations) Elasticity - Answer-the ease with which a supply or demand slope is able to vary (High Elasticity: Lattes - If the price doubled, people would buy a different caffeinated drink. Low Elasticity: Diapers - Even if the cost of diapers were to double, people would still buy diapers.) Equilibrium (of a Market) - Answer-when the quantity supplied is equal to the quantity demanded Disequilibrium (of a Market) - Answer-when either the quantity supplied or the quantity desired exceeds the other Market Economy - Answer-An economic system where decisions about production, consumption and investment are guided by the price of goods and services, which are determined the laws of supply and demand. (Capitalism)