NAF Business Economics: Final Exam
Review
The field of study that examines how people and societies make decisions that enable
them to get the most out of their limited resources. - correct answer-Economics
Economic side effect that affects an uninvolved third party. - correct answer-Externality
A categorized list of words that are related to a particular topic. - correct answer-
Taxonomy
What do economists study? - correct answer-How people, businesses, and societies
make decisions when seeking to get the most out of their limited resources.
Economics is the social science that studies how people and societies
_______________ to get the most out of their _______________ - correct answer-
make decisions; limited resources
Economics studies the ________________, ________________, and
________________ of goods and services. - correct answer-production, distribution;
consumption
Who studies how decisions about resources are made? - correct answer-Economists
Time, money, raw materials, and technology are examples of ______________ -
correct answer-Resources
Resources are anything that households and firms need in order to achieve their
___________ and ___________ - correct answer-needs; wants
What resources does Chik-fil-A utilize? - correct answer-Natural Resources/Raw
materials
(e.g. natural gas, chicken, grain, potatoes)
Technology
(e.g. cash register, inventory software, telephone)
Money (e.g. salaries, rent/mortgage)
Time (e.g. time to accept an order, produce and assemble food)
,Needs and wants always exceed _______________________ - correct answer-
available resources
The fundamental economic problem that forces consumers and producers to use
resources wisely. - correct answer-Scarcity
Delineate between needs and wants - correct answer-Needs = requisites for survival
Wants = goods that are desired, however, not needed
Examples of needs - correct answer-Food, water, shelter, clothing
Examples of wants - correct answer-Magazines, television sets, CD players, iPods, and
computers
True or False: Consumers comprise the only group that are considered economic
decision-makers - correct answer-False: Consumers AND Producers are economic
decision makers
The people who resolve to purchase goods and services - correct answer-Consumers
The people who make the goods and services that satisfy consumers' needs and wants
- correct answer-Producers.
___________ choose what to buy, and ___________ choose what to provide and how
to provide it. - correct answer-Consumers; producers
In what ways are you a producer? - correct answer-You can be considered a producer
of labor—when you work at a job, you provide valuable inputs for which you are paid.
What determines goods and services? - correct answer-Needs and wants
_________________ _________________ are based on your needs and wants, which
reflect your desires for certain goods and services. - correct answer-Economic decisions
Physical objects that can be purchased - correct answer-Goods
Examples of goods - correct answer-Slice of pizza, a car, or a pair of basketball shoes.
Actions or activities that are performed for a fee. - correct answer-Services
Examples of individuals who perform services - correct answer-Teachers, dentists,
plumbers, and bus drivers
,Governmental decisions (some of them used as a basis for laws) that are specifically
intended to influence how the economy is functioning. - correct answer-Economic
policies
One way the government sets economic policy - correct answer-Through fiscal policies
(the way government seeks to manage the economy through taxation, spending, and
borrowing)
Second way the government sets economic policy - correct answer-Through their
monetary policies (such as the Federal Reserve's raising and lowering of interest rate
Microeconomics, Macroeconomics, or Both?
Considers employment rates - correct answer-Macroeconomics
Microeconomics, Macroeconomics, or Both?
Considers how prices affect individual buyers and sellers - correct answer-
Microeconomics
Microeconomics, Macroeconomics, or Both?
Studies the production of entire countries - correct answer-Macroeconomics
Microeconomics, Macroeconomics, or Both?
Considers inflation, recession, international trade, and consumer confidence - correct
answer-Macroeconomics
Microeconomics, Macroeconomics, or Both?
A field of study in economics - correct answer-Both
Microeconomics, Macroeconomics, or Both?
Companies use it to understand what to sell, what to charge, and how many to make -
correct answer-Microeconomics
Microeconomics, Macroeconomics, or Both?
Considers gross domestic product (GDP) - correct answer-Macroeconomics
Microeconomics, Macroeconomics, or Both?
Studies how individuals and businesses behave within certain economic conditions -
correct answer-Microeconomics
, Microeconomics, Macroeconomics, or Both?
Used by businesses and individuals to make economic decisions - correct answer-Both
Microeconomics, Macroeconomics, or Both?
Examines how goods and services are priced in specific markets - correct answer-
Microeconomics
Microeconomics, Macroeconomics, or Both?
Looks at the economic "big picture" - correct answer-Macroeconomics
Microeconomics, Macroeconomics, or Both?
Considers the performance of the economy as a whole - correct answer-
Macroeconomics
Free enterprise economy - correct answer-Economic system in which individuals or
companies are generally free to enter any line of business (that is, provide any kind of
goods or services they wish); usually subject to some rules (for example, forbidding
anyone to practice dentistry without a license). A free enterprise economy is almost
always a market economy.
Gross Domestic Product (GDP) - correct answer-The total monetary value of all the
finished goods and services produced within a country's borders during a particular time
period.
Gross National Product (GNP) - correct answer-The aggregate market value of all
goods and services produced by all of its citizens and businesses irrespective of their
location (local or global) during a period of time
Individuals and families who live at one particular address. - correct answer-Households
The study of how the economy works on a national and global scale. It is the study of
such things as recessions, inflation, unemployment, and governmental fiscal or
monetary policies. - correct answer-Macroeconomics
Economic system in which supply, demand, and prices help people make decisions and
allocate resources. - correct answer-Market Economy
The study of how households and businesses make choices about how to utilize their
resources (for example, how people decide what goods and services to buy, and how
businesses decide how many of something to produce, and how to price their goods
and services). - correct answer-Microeconomics
Review
The field of study that examines how people and societies make decisions that enable
them to get the most out of their limited resources. - correct answer-Economics
Economic side effect that affects an uninvolved third party. - correct answer-Externality
A categorized list of words that are related to a particular topic. - correct answer-
Taxonomy
What do economists study? - correct answer-How people, businesses, and societies
make decisions when seeking to get the most out of their limited resources.
Economics is the social science that studies how people and societies
_______________ to get the most out of their _______________ - correct answer-
make decisions; limited resources
Economics studies the ________________, ________________, and
________________ of goods and services. - correct answer-production, distribution;
consumption
Who studies how decisions about resources are made? - correct answer-Economists
Time, money, raw materials, and technology are examples of ______________ -
correct answer-Resources
Resources are anything that households and firms need in order to achieve their
___________ and ___________ - correct answer-needs; wants
What resources does Chik-fil-A utilize? - correct answer-Natural Resources/Raw
materials
(e.g. natural gas, chicken, grain, potatoes)
Technology
(e.g. cash register, inventory software, telephone)
Money (e.g. salaries, rent/mortgage)
Time (e.g. time to accept an order, produce and assemble food)
,Needs and wants always exceed _______________________ - correct answer-
available resources
The fundamental economic problem that forces consumers and producers to use
resources wisely. - correct answer-Scarcity
Delineate between needs and wants - correct answer-Needs = requisites for survival
Wants = goods that are desired, however, not needed
Examples of needs - correct answer-Food, water, shelter, clothing
Examples of wants - correct answer-Magazines, television sets, CD players, iPods, and
computers
True or False: Consumers comprise the only group that are considered economic
decision-makers - correct answer-False: Consumers AND Producers are economic
decision makers
The people who resolve to purchase goods and services - correct answer-Consumers
The people who make the goods and services that satisfy consumers' needs and wants
- correct answer-Producers.
___________ choose what to buy, and ___________ choose what to provide and how
to provide it. - correct answer-Consumers; producers
In what ways are you a producer? - correct answer-You can be considered a producer
of labor—when you work at a job, you provide valuable inputs for which you are paid.
What determines goods and services? - correct answer-Needs and wants
_________________ _________________ are based on your needs and wants, which
reflect your desires for certain goods and services. - correct answer-Economic decisions
Physical objects that can be purchased - correct answer-Goods
Examples of goods - correct answer-Slice of pizza, a car, or a pair of basketball shoes.
Actions or activities that are performed for a fee. - correct answer-Services
Examples of individuals who perform services - correct answer-Teachers, dentists,
plumbers, and bus drivers
,Governmental decisions (some of them used as a basis for laws) that are specifically
intended to influence how the economy is functioning. - correct answer-Economic
policies
One way the government sets economic policy - correct answer-Through fiscal policies
(the way government seeks to manage the economy through taxation, spending, and
borrowing)
Second way the government sets economic policy - correct answer-Through their
monetary policies (such as the Federal Reserve's raising and lowering of interest rate
Microeconomics, Macroeconomics, or Both?
Considers employment rates - correct answer-Macroeconomics
Microeconomics, Macroeconomics, or Both?
Considers how prices affect individual buyers and sellers - correct answer-
Microeconomics
Microeconomics, Macroeconomics, or Both?
Studies the production of entire countries - correct answer-Macroeconomics
Microeconomics, Macroeconomics, or Both?
Considers inflation, recession, international trade, and consumer confidence - correct
answer-Macroeconomics
Microeconomics, Macroeconomics, or Both?
A field of study in economics - correct answer-Both
Microeconomics, Macroeconomics, or Both?
Companies use it to understand what to sell, what to charge, and how many to make -
correct answer-Microeconomics
Microeconomics, Macroeconomics, or Both?
Considers gross domestic product (GDP) - correct answer-Macroeconomics
Microeconomics, Macroeconomics, or Both?
Studies how individuals and businesses behave within certain economic conditions -
correct answer-Microeconomics
, Microeconomics, Macroeconomics, or Both?
Used by businesses and individuals to make economic decisions - correct answer-Both
Microeconomics, Macroeconomics, or Both?
Examines how goods and services are priced in specific markets - correct answer-
Microeconomics
Microeconomics, Macroeconomics, or Both?
Looks at the economic "big picture" - correct answer-Macroeconomics
Microeconomics, Macroeconomics, or Both?
Considers the performance of the economy as a whole - correct answer-
Macroeconomics
Free enterprise economy - correct answer-Economic system in which individuals or
companies are generally free to enter any line of business (that is, provide any kind of
goods or services they wish); usually subject to some rules (for example, forbidding
anyone to practice dentistry without a license). A free enterprise economy is almost
always a market economy.
Gross Domestic Product (GDP) - correct answer-The total monetary value of all the
finished goods and services produced within a country's borders during a particular time
period.
Gross National Product (GNP) - correct answer-The aggregate market value of all
goods and services produced by all of its citizens and businesses irrespective of their
location (local or global) during a period of time
Individuals and families who live at one particular address. - correct answer-Households
The study of how the economy works on a national and global scale. It is the study of
such things as recessions, inflation, unemployment, and governmental fiscal or
monetary policies. - correct answer-Macroeconomics
Economic system in which supply, demand, and prices help people make decisions and
allocate resources. - correct answer-Market Economy
The study of how households and businesses make choices about how to utilize their
resources (for example, how people decide what goods and services to buy, and how
businesses decide how many of something to produce, and how to price their goods
and services). - correct answer-Microeconomics
