Economic Final Review

  1. What economic issue determines how to fulfill unlimited wants and needs with limited resources?
  1. What is theMOST LIKELYcause of jobs being outsourced to countries like India and China?
  1. Given the interrelationships between supply, demand, and the labor market, which career paths will likely result in more employment opportunities?
  1. What are the three basic questions that must be asked when producing a product?
  1. What shows an individual that they do not have too much debt?
  1. If you deposited a check for $123.00 on 7/27ANDspent $52.00 on dinner that evening, what is your account balance?
  1. During the Great Depression, what was established by the federal government to restore confidence in our banking system?
  1. Which main theorist supported the idea that all means of production should be controlled by the government?
  1. Which business type splits up financial and business operation responsibility between two individuals?
  1. If a family makes $60,000 a year and pays 10% on taxes on groceries compared to a family who makes $200,000 and pays 5% on taxes on groceries, which tax system is being described?
  1. In a command economy, who decides to answer the three (3) basic economic questions of what to produce, how to produce it, and for whom it is being produced?
  1. List 2 examples that are NOT an advantage in a market economy.
  1. A sole proprietorship borrows $100,000 from a bank as part of a regular business activity, but the business fails before the money is paid back. Describe the likely consequence that would happen.
  1. Describe a proprietorship.
  1. What is a trade off? Give an example of a trade off.
  1. If a corporation is sued in court, loses, and then goes out of business, which of the following would happen to the corporation's stockholders?
  1. If a family is making $30,000 and another family is making $100,000 but they are paying the same tax rate, which tax is being described?
  1. Identify three (3) advantages of a capitalist economy.
  1. Give five (5) examples of fixed costs.
  1. A man who has a cotton farm and sells his cotton to a clothing business, which factor of production is being used?
  1. What is the most important consideration that an entrepreneur must make when wanting to start a business?
  1. What was the purpose to signing NAFTA into law?
  1. What is a disadvantage to NAFTA?
  1. If a family makes $55,000 and tax pays 15% according to the tax brackets but once they make $55,001their tax rates jumps to 22%. Which tax system is being described?
  1. Give me 3 examples of an opportunity cost.
  1. Identify a country that is associated with a market, traditional, and command economy.
  1. You want to buy a new tee shirt. The tee shirt is made of cotton, a plant product that must be grown, harvested, and delivered to a factory. The following are necessary to produce the tee shirt:Of the four necessary items listed above, which of these items qualifies ascapital?
  1. Identify three (3) examples of a variable cost.
  1. Describe a mixed economy.
  1. You want to buy a new tee shirt. The tee shirt is made from a cotton, a plant product that must be grown, harvested, and delivered to a factory. The following are necessary to produce a tee shirt:

Of the four necessary items listed above, which of these items qualifies as labor?

  1. What is the main purpose of non-profit organization?
  1. Which business operation is considered “it’s own legal entity’?
  1. Which business operation requires all financial and business operation responsibility to land on one individual?
  1. What is the FDIC?
  1. Name the philosopher who believed in “laissez faire” and wrote the Wealth of Nations.
  1. What is the purpose of the World Trade Organization?
  1. Describe a market equilibrium.