Notgrass Exploring Economics Units 1-5 Exam Questions And Answers Graded A+

_________________ is an economic system in which a government encourages and assists businessmen in establishing __________________ outposts. - mercantilism, colonial ____________________ economies try to insure significant growth while sacrificing the possibility of stability. - market a benefit that motivates action - economic incentive a central bank for the United States established by Congress in 1913 - Federal Reserve System A cigarette warning label is an example of a __________________. - disincentive a small step that makes a big difference in an action taken - margin a type of business in which people build large enterprises that do not make things themselves, but invest huge sums of money in companies that do - investment capitalism Capitalism and socialism are much __________________ in who makes economic decisions. - different Conditions in Egypt during the famine while Joseph was living there illustrate the economic principle of ________________________. - supply and demand determines the cost and benefit of taking a particular step before you take it to determine if the benefit outweighs the cost - cost-benefit analysis economic effects external to the direct production of goods - externalitieseconomic idea proposed by President Reagan in 1980 - supply-side economics emphasizes the critical role that self-interest plays in decision-making. - public choice theory GDP stands for: - gross domestic product greatest benefit that a producer gives up when he makes a choice - opportunity cost Greek word from which we get the word economics - oikonomos how much of one product a consumer is willing to give up in exchange for another product to maintain the same level of satisfaction - marginal rate of substitution In a __________________ economy, some authority (usually the government) dictates what and how much producers will produce. - command In a command economy, some authority (usually the government) dictates what and how much producers will produce. (You will need to memorize this definition.) - definition of a command economy In Proverbs 30:7-9, the writer asked God to give him neither ________________ nor _______________. - poverty, riches In terms of economics, _______________ means materials used to produce goods. - capital In the early centuries after the church began, people who wanted to escape the influence and defilement of the world sometimes went to live in _________________. - monasteries In the United States, _____________ is a medium of exchange. - money