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Chapter 2 and 3
Economics
First part of Jeopardy deals
with Chapter 2
Level of economic prosperity:
Standard of Living
The concentration of the
productive efforts of
individuals and businesses
on a limited number of
activities:
Specialization
The structure of methods
and principles that a society
uses to produce and
distribute goods and
services
(2 words):
Economic System
An individual’s own
personal gain:
Self-Interest
Another name for a
centrally planned
economy.
Command Economy
The hope of reward or fear of
penalty that encourages a
person to behave in a certain
way:
Incentive
The arena of exchange in which
firms purchase the factors of
production from households:
A) Profit
B) Factor Payment
C) Factor Market
D) Consumer Sovereignty
C) Factor Market
The power of consumers to
decide what gets produced:
A) Profit
B) Factor Payment
C) Factor Market
D) Consumer Sovereignty
D) Consumer Sovereignty
The struggle among
producers for the dollars of
consumers:
Competition
A set of government
programs that protect
people who face
unfavorable economic
conditions is called a
_______ _____.
Safety Net
The amount of money a
business receives in excess
of its expenses:
Profit
An economic system that
relies on habit, custom, or
ritual to decide the three
key economic questions.
Traditional
Economy
The income people receive in
return for supplying factors of
production:
A) Profit
B) Factor Payment
C) Factor Market
D) Consumer Sovereignty
B) Factor Payment
A range of economic and political
system based on the belief that
wealth should be evenly distributed
throughout society:
A) Communism
B) Authoritarian
C) Capitalism
D) Socialism
D) Socialism
Describing a form of government that
limits individual freedoms and
requires strict obedience from its
citizens:
A) Communism
B) Authoritarian
C) Capitalism
D) Socialism
B) Authoritarian
True or False:
A political system in which the
government owns and
controls all resources and
means of production and
makes all economic decisions
is called communism.
True
The doctrine that
government generally
should not intervene in the
marketplace:
Laissez Faire
The process of selling
businesses or services
operated by the government
to individual investors, and
then allowing them to compete
in the marketplace:
Privatization
An economic system in which
investments in firms are made in
a free market by private
decisions rather than state
control:
A) Free Enterprise System
B) Mixed Economy
C) Incentive
D) Competition
A) Free Enterprise System
A person or group of people living
in a single residence:
A) Firm
B) Invisible Hand
C) Household
D) Trick question—none of the
above
C) Household
An organization that uses
resources to produce or
service, which it then sells:
A) Firm
B) Invisible Hand
C) Household
D) Trick question—none of the above
A) Firm
This man coined the
‘invisible hand’ to describe
self-regulating nature of the
marketplace:
Adam Smith
A market-based economic
system in which the government
is involved to some extent:
A) Traditional Economy
B) Command Economy
C) Market Economy
D) Mixed Economy
D) Mixed Economy
Property that is owned by
individuals or companies,
not by the government or
the people as a whole
(2 words):
Private
Property
The arena of exchange in which
households purchase goods and
services from firms:
A) Product Market
B) Factor Market
C) Factor Payment
D) Incentive
A) Product Market
The process of bringing new
methods, products, or ideas into
use:
A) Profit
B) Innovation
C) Standard of Living
D) Safety Net
B) Innovation
Any arrangement that allows
buyers and sellers to exchange
things:
A) Standard of Living
B) Profit
C) Innovation
D) Market
D) Market
Second part of Jeopardy
deals with Chapter 3
A commitment to the value of
work:
Work Ethic
A proposed law submitted directly
to the public:
A) Referendum
B) Obsolescence
C) Patent
D) Copyright
A) Referendum
Situation in which older
products and processes
become out-of-date:
A) Referendum
B) Obsolescence
C) Patent
D) Copyright
B) Obsolescence
The principle that everyone has
the same legal rights:
A) Private Property Rights
B) Legal Equality
C) Voluntary Exchange
D) Interest Groups
B) Legal
Equality
True or False
The principle that people
decide what agreements they
want to enter into is called
private property rights.
FALSE
This is called Free Contract
The concerns of a
society as a whole:
A) Public Disclosure Laws
B) Gross Domestic Product
C) Eminent Domain
D) Public Interest
D) Public
Interest
The right of a government
to take private property
for public use:
A) Public Disclosure Laws
B) Gross Domestic Product
C) Eminent Domain
D) Public Interest
C) Eminent Domain
True/False:
Laws requiring companies
to provide information about
their products or services is
called public disclosure
laws.
True
The dollar value of all final
goods and services produced
within a country’s borders in a
given year:
A) GNP (Gross National Product)
B) GDP (Gross Domestic Product)
C) NDP (National Domestic Product)
D) USP (United States Product)
B) GDP
(Gross Domestic Product)
The principle that anyone
can compete in the
marketplace:
A) Profit Motive
B) Free Contract
C) Legal Equality
D) Open Opportunity
D) Open
Opportunity
Love of one’s country:
Patriotism
Something which benefits a good
or service when they don’t
purchase an item:
A) Positive Externality
B) Negative Externality
C) Public Good
D) Average Externality
A) Positive Externality
A shared good or service for which it
would be inefficient or impractical to
make consumers pay individually and to
exclude those who did not pay:
A) Average Externality
B) Negative Externality
C) Public Good
D) Positive Externality
C) Public Good
Give two examples of a
public good….
1. Public Education
2. Highway System
3. Law Enforcement
True/False:
Market failure is a situation in
which the free market,
operating on its own does
not distribute resources
efficiently.
True
A period of macroeconomics
expansion, or growth, followed by
one of contraction, or decline:
A) Referendum
B) Business Cycle
C) Gross Domestic Product
D) Public Sector
B) Business Cycle
The cost of producing a good
or service to be paid for by
someone other than the
producer:
Negative Externality
A license that gives the
inventor of a new product the
exclusive right to sell it for a
specific period of time:
Patents
Patents in the United States
are for how long:
A) 10 years
B) 17 years
C) 20 years
D) 23 years
C) 20 years
The part of the economy that
involves the transaction of the
government:
A) Obsolescence
B) Referendum
C) Free Rider
D) Public Sector
D) Public Sector
True or False:
An in-kind benefits is a financial
award given by a government
agency to a private individual or
group in order to carry out a
specific task.
False
This is called a grant
True or False:
Direct payments of money
by the government to the
poor, disabled, and retired
people is called welfare.
False
This is called cash transfers
An income level below that
which is needed to support
families or households:
Poverty Threshold
A private organization that tries to
persuade public officials to act in
ways that benefit its members:
A) Interest Group
B) Eminent Domain
C) Private Property Rights
D) Legal Equality
A) Interest Group
A government document that
grants an author exclusive rights
to public and sell creative works:
Copyright
The incentive that drives individuals
and business owners to improve
their material well-being:
A) Open Opportunity
B) Economic Transition
C) Profit Motive
D) Laissez Faire
C) Profit Motive
For one point, name all FIVE of the
basic principles of Free Enterprise
the U.S. uses today:
1.Profit motive
2. Open Opportunity
3. Legal Equality
4. Private Property
5. Freedom to Buy and Sell
Last Question:
Give an example of a
positive externality.
Answers will vary…
Last Question:
Give an example of a
negative externality.
Answers will vary…