RAMSEY CLASSROOM CHAPTER 13 TEST STUDY GUIDE 2023 ALL DONE QUESTIONS AND ANSWERS

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School
University of Alabama **We aren't endorsed by this school
Course
CHE INORGANIC
Subject
Economics
Date
Nov 8, 2023
Pages
3
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RAMSEY CLASSROOM CHAPTER 13 TEST STUDY GUIDE 2023 ALL DONE QUESTIONS AND ANSWERS Economic interdependence... - Describes how many countries and companies around the world depend upon each other A ____________ economy is built on primary industries such as fishing and farming, and it generally has very little waste and very little surplus. - traditional Which factor of production refers to the man-made objects like tools, machinery, buildings, and equipment needed for production? - Capital If the government fears there may be a shortage of something, they may choose to _________ it. - Ration Whether a country is developed or developing depends on . . . - The country's per capita income, standard of living, technology, education, personal freedom and poverty level _________ never really works for an economy because there's little innovation and no reward for starting a business, as well as an unmotivated labor force because workers are often assigned jobs. - Socialism Inflation, deflation, the rate of economic growth, price levels, national income, changes in employment rates, and GDP are all called _______ - Economic indicators What is scarcity? - It's something that occurs when there's greater demand for something than what's available. Supply and demand helps us understand how the _________ of a particular product and the _________ for it affect the price of the item. - Availability; desire Every country has a unique ______ that includes its leadership, the way it makes decisions, and how the country's citizens buy stuff. - Economic system The series of steps it takes to produce a product is called the . . . - Chain of production You can depend on the people in power to either make you wealthy or make you poor. - False
Socialism is an example of a _________ economy where the __________ is/are at the center. - Command; government ___________ doesn't/don't exist in a command economy because there are fewer options for goods and services and they're controlled by the government. - Competition Equilibrium is .... - When the market supply and demand match each other, resulting in price stability Wind, water, and solar energy are examples of _____________. - renewable resources _____________ is the science of the whole economy, while _____________ is the study of people, individual businesses, or markets. - Macroeconomics; microeconomics An extreme result of free-market capitalism without government regulation is referred to as . . . - A monopoly Economics is a study of consumer ______. - choices The U.S is mostly a... - free market What is specialization? - It's when a country focuses its efforts on producing a limited variety of goods or services A free enterprise market economy where businesses are free to determine what goods to produce and who to sell them to is called ___________. - capitalism What you choose to __________ has a(n) ___________ on the economies of other countries. - Buy; impact __________ is the desire to make a profit, and it isn't greedy. It keeps businesses in ___________. - Profit motive; business ________ is an official ban on trade with a country. - An embargo Low supply and high demand increase the price of an item. - True The buying and selling of various goods and services is called ____________. - trade During the ____________ phase of the business cycle, GDP growth falls, unemployment levels rise, income is in decline, and the stock market declines. - Contraction (or recession) The total value of all the finished goods and services produced in a country for a specific period of time is called ______________. - Gross Domestic Product (GDP)
A product that's sold to the global market is called _________ while a product that's bought from another country is called ___________. - An export; an import Why do economists study the data of economic indicators? - To interpret current or future investment possibilities. These indicators also help to judge the overall health of an economy. What are the four factors of production that an economy needs in order to produce something? - land, labor, capital and entrepreneurship. Explain some of the differences between socialism and capitalism. - Capitalism is based on individual initiative and favors market mechanisms over government intervention, while socialism is based on government planning and limitations on private control of resources. Left to themselves, economies tend to combine elements of both systems. How does a free market encourage competition? - The absence of quotas and tariffs creates an opportunity for competition. Explain how your daily choices affect the global economy. - When you buy things you are helping the economy grow by spending and buying stuff. Describe some of the differences between a developed and a developing country. - A country having an effective rate of industrialization and individual income is known as Developed Country. A developing Country is a country which has a slow rate of industrialization and low per capita income. Infant mortality rate, death rate and birth rate is low while the life expectancy rate is high. Describe the type of economy that the United States operates under. - Created by the United States Constitution, the U.S. has a mixed economy, meaning that it combines elements of the command and market economic models. In terms of consumer goods and business services, the United States economy operates as a free market.
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