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Unit 2 quiz Personal and Family Finance

Terms in this set (15)

What is one of the basic principles of economics?
Society and its individuals have unlimited wants.
A certain country has a balanced economy. This has led to more tax revenue for the government. What is MOST likely the fiscal policy stance that this government takes?
neutral stance
What is another term for the buying and selling of stocks?
trading
Why do MOST companies sell shares of stock?
to generate income for the company
According to economists, all humans have their own "rational self-interest." What does this mean?
They want to benefit themselves as much as possible.
Manni wants to start a paper company. He needs to find a place where he can have access to lumber so he can create his products. Which category of economic resource does he require?
land
In physical stock markets, the buying, selling, and trading of stocks happens on the trading floor. This sort of auction for stocks happens as traders verbally submit their offers. What is this type of trading known as?
open outcry
You and a friend are each given a free pair of sunglasses at a concert. Your friend says, "I can't believe we got free sunglasses!" What do you know about the sunglasses?
They aren't really free; you likely contributed to the costs involved.
In the New York Stock Exchange, traders are on the floor verbally submitting their offers. What type of stock market is this considered to be?
physical
Scott wanted to start a lawn cutting service but needed to purchase a lawnmower. Sherif gave Scott $30 in exchange for company revenue. What does Sherif now have in Scott's company?
stock
Which statement about economic resources is CORRECT?
Economic resources include land, capital, entrepreneurial ability, and labor.
Catherine inherited a lot of money and decided to start a business. She has purchased a building, bought tools and machinery, and hired employees. Her main problem is that she has no business experience, no ideas, and no experience creating products. Which category of economic resource does she require?
entrepreneurial ability
Owen wants to start a tutoring business. He has a space rented and a lot of ideas, but he has no employees who can tutor the students. Which category of economic resource does he require?
labor
One country is spending more money than it collects. What is MOST likely the fiscal policy stance that this government takes?
expansionary stance
How is international trade MOST likely to impact companies and individuals?
Companies may choose to move their business to a different country.
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