ECONOMICS UNIT 1 Test Review Game

1. What are 2 types of economics we studied about in Chapter 3? micro & macro 2. What do we use to measure our economys performance? Gross domestic product 3. What are 2 types of GOODS we studied about in Chapter 3? public & private 4. What is another name for a person who buys a product? consumer 5. What is the most effective way for consumers to make their desires known to businesses? By the purchases they make 6. Where do buyers & sellers exchange things? markets 7. What is the unintended cost or benefit that affects other people & results from economic activity? externality 8. What are 2 types of externalities we studied about in Chapter 3? positive & negative 9. A period of macroeconomic expansion followed by a period of contraction is a _____. business cycle 10. What illustrates the trade-offs facing an economy that produces only two goods? production possibilities frontier 11. What is the study of the economy as a whole? Macroeconomics 12. What incentive do manufacturers have to sell their products? To make profits on sales 13. What are the three key economic questions? What to produce? How to produce? Who to produce for? 14. What shows the relationship between firms & households in a market economy? the circular flow 15. What is a situation in which the market does not distribute resources efficiently? market failure

16. The basic purpose of profits in our market economy is so businesses know what to produce. 17. What are the four factors of production? Land, labor, capital, entrepreneurs 18. What is the central problem in economics? scarcity 19. In the circular flow, in which market are goods & services bought & sold? the product market 20. In the product market, who acts as buyers? households 21. What is a manufactured product that is used to produce other products? capital 22. Students taking a course in economics, an intensive apprenticeship program, and an employee learning to use new computer software are examples of an improvement to? human capital 23. What does this point represent? [Visual] using resources inefficiently 24. What is the highest valued alternative that is sacrificed in making a choice? opportunity cost 25. What is bought & sold in the factor market? the factors of production 26. What is one characteristic that all economic resources have in common? they are scarce 27. Individuals responding to price changes is which type of economics? microeconomics 28. In which economic system does the government make all economic decisions? command economy 29. Who is responsible for combining & managing the inputs of land, labor, & capital? entrepreneurs 30. What does this point represent? [visual] unattainable for an economy