THEBRIGHT EXAM SOLUTIONS 8/20/2024 8:37 PM
Openstax Principles of Economics Chapter 1
Exam Questions With Correct Answers
Circular flow diagram - answer✔✔a diagram that views the economy as consisting of
households and firms interacting in a foods and services market and a labor market
command economy - answer✔✔an economy where economic decisions are passed down from
government authority and where resources are owned by the government
division of labor - answer✔✔the way in which the work required to produce a good or service is
divided into tasks performed by different workers
economics - answer✔✔the study of how humans make choices under conditions of scarcity
goods and services market - answer✔✔a market in which firms are sellers of what they produce
and households are buyers
gross domestic product (GDP) - answer✔✔measure of the size of total production in an economy
labor market - answer✔✔the market in which households sell their labor as workers to business
firms or other employees
macroeconomics - answer✔✔the branch of economics that focuses on broad issues such as
growth, unemployment, inflation, and trade balance
market - answer✔✔interaction between potential buyers and sellers; a combination of demand
and supply
market economy - answer✔✔an economy where economic decisions are decentralized, resources
are owned by private individuals, and businesses supply goods and services based on demand
microeconomics - answer✔✔the branch of economics that focuses on actions of particular agents
within the economy, like households, workers, and business firms
private enterprise - answer✔✔system where the means of production (resources and businesses)
are owned and operated by private individuals or groups of private individuals
scarcity - answer✔✔when human wants for goods and services exceed the available supply
Openstax Principles of Economics Chapter 1
Exam Questions With Correct Answers
Circular flow diagram - answer✔✔a diagram that views the economy as consisting of
households and firms interacting in a foods and services market and a labor market
command economy - answer✔✔an economy where economic decisions are passed down from
government authority and where resources are owned by the government
division of labor - answer✔✔the way in which the work required to produce a good or service is
divided into tasks performed by different workers
economics - answer✔✔the study of how humans make choices under conditions of scarcity
goods and services market - answer✔✔a market in which firms are sellers of what they produce
and households are buyers
gross domestic product (GDP) - answer✔✔measure of the size of total production in an economy
labor market - answer✔✔the market in which households sell their labor as workers to business
firms or other employees
macroeconomics - answer✔✔the branch of economics that focuses on broad issues such as
growth, unemployment, inflation, and trade balance
market - answer✔✔interaction between potential buyers and sellers; a combination of demand
and supply
market economy - answer✔✔an economy where economic decisions are decentralized, resources
are owned by private individuals, and businesses supply goods and services based on demand
microeconomics - answer✔✔the branch of economics that focuses on actions of particular agents
within the economy, like households, workers, and business firms
private enterprise - answer✔✔system where the means of production (resources and businesses)
are owned and operated by private individuals or groups of private individuals
scarcity - answer✔✔when human wants for goods and services exceed the available supply
