KSU ECON 1000 Test 1 questions and
answers A+ rated
economic system - correct answer ✔✔rules and methods put in place by society to answer
three fundamental econ questions
comparative economic systems - correct answer ✔✔subfield of economics that compares and
contrasts the structure and performance of different types of economic organizations
four primary econ institutions - correct answer ✔✔households, firms, markets, and government
households - correct answer ✔✔most fundamental part of economic systems; ultimate
consumers of most finished goods/services; primary suppliers of labor
firms - correct answer ✔✔institutions which transform factors of production into finished
goods/services
economic resources (factors of production) - correct answer ✔✔inputs such as factories, farms,
stores, trucks, and equipment used to produce goods/services
natural assets - correct answer ✔✔natural resources
produced assets - correct answer ✔✔currently available machines, factories, and inventories of
finished goods available as industrial capital as well as social capital such as transportation and
communications infrastructure and educational institutions
, human capital - correct answer ✔✔skills, education, training which individuals in the labor force
posses
market - correct answer ✔✔collection of all potential buyers and all potential sellers of a good
or service
government - correct answer ✔✔decision-making institution with legal authority to impose
restrictions or mandates on the behavior of other decision-makers (LEGAL COERCION)
contract - correct answer ✔✔legal document which specifies what different parties must do and
provides enforcement or compensation for non-performance
capitalism - correct answer ✔✔economic system in which the means of production are privately
owned and operated for a profit
socialism - correct answer ✔✔economic system in which the means of production are owned
by the government
feudalism - correct answer ✔✔economic system in which land ownership is restricted to an
aristocratic nobility
3 property rights - correct answer ✔✔right to control, right to transfer, right to restitution
right to control - correct answer ✔✔how to use you rproperty
right to transfer - correct answer ✔✔obtain ownership from or relinquish to another person
right to restitution - correct answer ✔✔be compensated by another for damages done to
property or infringe upon you rights
answers A+ rated
economic system - correct answer ✔✔rules and methods put in place by society to answer
three fundamental econ questions
comparative economic systems - correct answer ✔✔subfield of economics that compares and
contrasts the structure and performance of different types of economic organizations
four primary econ institutions - correct answer ✔✔households, firms, markets, and government
households - correct answer ✔✔most fundamental part of economic systems; ultimate
consumers of most finished goods/services; primary suppliers of labor
firms - correct answer ✔✔institutions which transform factors of production into finished
goods/services
economic resources (factors of production) - correct answer ✔✔inputs such as factories, farms,
stores, trucks, and equipment used to produce goods/services
natural assets - correct answer ✔✔natural resources
produced assets - correct answer ✔✔currently available machines, factories, and inventories of
finished goods available as industrial capital as well as social capital such as transportation and
communications infrastructure and educational institutions
, human capital - correct answer ✔✔skills, education, training which individuals in the labor force
posses
market - correct answer ✔✔collection of all potential buyers and all potential sellers of a good
or service
government - correct answer ✔✔decision-making institution with legal authority to impose
restrictions or mandates on the behavior of other decision-makers (LEGAL COERCION)
contract - correct answer ✔✔legal document which specifies what different parties must do and
provides enforcement or compensation for non-performance
capitalism - correct answer ✔✔economic system in which the means of production are privately
owned and operated for a profit
socialism - correct answer ✔✔economic system in which the means of production are owned
by the government
feudalism - correct answer ✔✔economic system in which land ownership is restricted to an
aristocratic nobility
3 property rights - correct answer ✔✔right to control, right to transfer, right to restitution
right to control - correct answer ✔✔how to use you rproperty
right to transfer - correct answer ✔✔obtain ownership from or relinquish to another person
right to restitution - correct answer ✔✔be compensated by another for damages done to
property or infringe upon you rights
