| Question Answer | Most effective way for consumers to make their desires known to businesses Purchases they make | Technology Makes the economy stronger and more efficient | The three main outcomes that policymakers pursue when they try to stabilize the economy High employment, steady growth, and stable prices |
|---|
How do consumers make their desires known to producers and the government by?
When buying products, they indicate to producers what to produce and how much to make. Consumers can also make their desires known by
joining interest groups
, which are private organizations that try to persuade public officials to vote according to the interests of the groups’ members.
How do consumers make their desires known to businesses?
Through their economic dealings with producers
, consumers make their desires known. When buying products, they indicate to producers what to produce and how much to make.
Why does government use its powers to make sure that businesses disclose so much information to the public?
Require companies to disclose information to consumers.
Allow individuals to operate their businesses in ways they think will maximize their profits
. … The benefits of the facility are greater for the society than for the individuals using it. The total benefits to society are greater than the total cost.
What is a human made resource that helps people create other goods and services?
Capital
– any human made resource that is used to produce other goods and services.
When the price of something increases the quantity demanded?
As we can see on the demand graph, there is an inverse relationship between price and quantity demanded. Economists call this the Law of Demand. If the price goes up, the quantity demanded goes down (but demand itself stays the same).
If the price decreases, quantity demanded increases
.
What is one disadvantage of a free market society?
What is one disadvantage of our free market society? …
Consumers have fewer choices than they do in other societies
.
What incentive do manufacturers have to sell products?
| Question Answer | What incentive do manufacturers have to sell their product making profits on sales | In what kind of an economy does the government make all the decisions centrally planned | What is the purpose of competition to act as a regulating force in the marketplace |
|---|
What is a factory building an example of?
A factory building is an example of which factor of production?
Physical capital
. Human-made objects used to create other goods and services are physical capital.
What incentive motivates a manufacturer to sell a product group of answer choices?
| A B | What is opportunity cost? most desirable alternative given up for the decision | Competition struggle among various producers for the consumer’s business | What incentive motivates a manufacturer to sell a product? making profits | What is the purpose of competition? act as a regulating force in the marketplace |
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What is positive externality?
A positive externality occurs
when a benefit spills over
. So, externalities occur when some of the costs or benefits of a transaction fall on someone other than the producer or the consumer.
In what kind of an economy does the government make all the decisions?
A centrally planned economy, also known as a command economy
, is an economic system in which a central authority, such as a government, makes economic decisions regarding the manufacturing and the distribution of products.
What is an example of a public good?
In economics, a public good refers to a commodity or service that is made available to all members of a society. … Examples of public goods include
law enforcement, national defense, and the rule of law
. Public goods also refer to more basic goods, such as access to clean air and drinking water.
What is the most desirable alternative given up?
The most desirable alternative given up as a result of a decision is known as
opportunity cost
. Trade-offs are all the alternatives that we give up whenever we choose one course of action over others.
What are resources used to make all goods and services called?
Factors of production
are the resources people use to produce goods and services; they are the building blocks of the economy. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.
What is the difference between a scarcity and a shortage?
Scarcity and shortage are
not synonyms
. Scarcity is the simple concept that, while some resources may be limited, supply equals demand. Shortage, on the other hand, occurs when markets are out of equilibrium and demand exceeds supply. … Just because a product is scarce, does not mean that there is unfilled demand.
