Exam 2: Markets and Economies

The payment made to the entrepreneurial economic resource is called:

What are the fundamental economic questions?

An advantage of market economies is that:

Pawsabilities is a dog grooming service entirely owned by Clark, Art, and Fred. Which of the following statements does NOT describe a downside of this business form?

Sonny owns a grocery store. He realizes that his profits will increase if he can buy more automated check-out machines and then employ fewer workers who check out each shopper. This decision to replace labor with capital is an example of what fundamental economic question?

Households receive _____ as payment for work effort.

In the circular flow model, households:

A _____ is made by a government for something other than the purchase of a good or service.

When cell phone producers decided to produce more smartphones and fewer flip-style phones, they demonstrated which of the economic questions?

Taylor decides to create an organic agriculture marketing firm and is working on the business plan for his new business. Which category of the four factors of production does his creation of this business fall under?

Traditional economies make economic decisions based on:

Which of the following would NOT be a feature of pure market economy?

A firm that is legally distinct from its owners, who are called members, is called a:

What is a characteristic of a purely traditional economic system?

Economists evaluate an allocation of resources as _____ if no alternative allocation could make some people better off without making other people worse off.

An economist considers a taxi cab owned by a cab company to be which of the four resources of production?

A professor who teaches a class is contributing which of the four factors of production to the creation of a college education?

The factors of production are collectively owned in _____ economy.

Alisa buys a 3D printer for the coworking space that she operates. Which category of the four factors of production does this printer fall under?

List the different types of spending (including to governments) that is done by households in the circular flow diagram.