Exam 2: Understanding Basic Economics

Economic development zones,established by governments,offer a variety of financial incentives to businesses that meet specific job creation and local investment criteria.

The ________ measures a country's output-its production,distribution,and use of goods and services-by computing the sum of all goods and services produced for final use in a country during a specified period.

List the major factors that affect the overall demand of a product.

The supply curve of a firm will shift to the right if technology increases the firm's production costs.

A business owner has to decide whether the company should purchase new manufacturing equipment,open a new retail store in another city,or invest in a major advertising campaign.This decision to give up something to get something else is referred to as ________.

What are economic indicators?

In a regulated monopoly,________.

Capital includes land and minerals that a business needs in order to produce goods and services.

Define and discuss the term business cycles.

A business owner has to decide whether the company should purchase new manufacturing equipment,open a new retail store in another city,or invest in a major advertising campaign.The value of the most appealing alternative that the business owner did not choose is its ________.

Explain three commonly known price indexes.

________ is the study of how a society uses its scarce resources to produce and distribute goods and services.

________ taxes are implemented,in part,to help control potentially harmful practices,on selected items such as gasoline,tobacco,and liquor.

________ is a steady rise in the average prices of goods and services throughout the economy.

As social equality is a major goal of planned systems,private enterprise and the pursuit of private gain are encouraged.

There are 10 pizza restaurants in a city.Each restaurant claims to have the "best pizza in town" and advertises the ways in which its pizza is different and better than its competitors' pizzas.This is an example of a(n)________.

In early December,it was reported that housing rates in October 2010 were at its 6-month low,which resulted in increased home purchases.This is an example of a ________.

The money,computers,machines,tools,and buildings that a business needs in order to produce its goods and services are called ________.

Capitalism is a term used to describe the free-market system,one in which private parties own and operate the majority of businesses and where competition,supply,and demand determine which goods and services are produced.

Movement along the supply curve typically slopes upward because ________.