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Any questions? Email jmuller@bacschool.org MIDTERM REVIEW 1.
The prosperity and efficiency of the free market economy is
owed to its foundation of limited government, freedom of enterprise
and competition, and ____ 2.
The quantity of a good that producers will make available at
different prices is the _____ 3.
A nation whose resources are produced the same way they were
200 years ago has a ______________ economy. 4.
A truck used by a florist to deliver flowers is an example of
a __________ good. 5.
____ is the amount of satisfaction that results from a
one-unit increase of a good. 6.
Entry into a(n) ____ market is completely blocked. 7.
The Wealth of Nations was written by _____ 8.
When economists use the term ____, they are referring to
material items or services that are valuable to people. 9.
An economic ____ seeks to show the relationships among the
various components of an economy.
10.
A forklift used to transport imported goods within a
warehouse would be a(n) ____ good.
11.
Laissez Faire, a French phrase often used in connection with
economics, means _____.
12.
The nations of Europe followed the economic policies of
mercantilism during the ___ century.
13.
The ____ of a good refers to the quantity of a good for sale
at a certain price under certain conditions
14.
The capitalism of the former Soviet Union was ____ capitalism
because the government controlled most of the capital.
15.
If a grocery owner were to talk about the amount of bananas
consumers were buying, he would be referring to that fruit’s _____
16.
A Communist-controlled country would most likely have a ____
economy.
17.
This gentleman used his resources wisely to make gunpowder
for President Jefferson
18.
In a free market, who ultimately determines what goods are
produced and in what quantity?
19.
A non-durable good has a life expectancy of less than _____
20.
___ is the amount of satisfaction that results from a
one-unit increase of a good.
21.
If Miss Johnson quit a job where she annually made $40,000 to
start a business whose expense was $20,000 and total revenue was
$15,000 during the first year, her opportunity cost for the year
equaled ______
22.
The _____ effect says that when the price of a certain good
rises, people tend to find alternatives that are less expensive.
23.
The excess of total revenue over total expense is a
producer’s ________
24.
The _____ effect says that when the price of a certain good
rises, people tend to find alternatives that are less expensive.
25.
Which group was the first to try to create a science out of
economics?
26.
The proficiency of the market economy is owed to its freedom
of enterprise and competition, limited government and _________
27.
A(n) ______ is a tax that a government places on imported
goods.
28.
_____ is the main reason why countries with market economies
are generally prosperous.
Match the term with the
correct definition or description.
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