M-STEP Review ~ Econ

If people's wants are limited then we are left with?

Scarcity

What are the factors of production?

Land, labor, and capital

If you return an unfinished book to the library to avoid a late fee, what is your opportunity cost?

Finishing the book

Most common type of economy?

Mixed

What is the Law of Demand if the quantity demanded is increasing?

Price increases

What happens to the demand curve if there is a demand for clothes but a blizzard keeps them at home?

The curve shifts to the left

What is the Law of Supply if price increases?

Quantity supplied increases

What is a market structure where the producers have the most power?

A monopoly

What form of business organization is most common?

A sole proprietorship

Outsourcing is the practice of?

Using outside contractors instead of staff

What is the difference between real and nominal GDP, when GDP is real?

It is adjusted for inflation

What is the best example of a fiscal policy?

Create federal jobs so workers can spend more

What is an example of an U.S. export?

A Dutch family hosting a U.S. student

Why is foreign debt a serious problem for poor countries?

Paying off principals and interest takes a large part of nat'l budgets