- •1.What kind of science is economics?
- •2. What does economics explain?
- •4. What economic issues do we meet with every day of our lives?
- •1.What is economics?
- •11. What do economists use to explain or describe the “world that is”?
- •17. Why does positive economics avoid value judgements?
- •18. Why do economists use positive economics?
- •22. Why can some economic issues never be decided by using facts?
- •1/ What are economic resources?
- •21. What factors of production are active (flexible) and passive (fixed)? Why?
- •1.What are the three basic economic questions that every society must answer?
- •2.What makes each society look for the answers to the basic economic questions?
- •3/ How does each society make its decisions to solve the problem of scarcity?
- •6/What does the Who question mean?
- •7/What is an economic system?
- •9/What is a traditional economy?
- •11/ Why are there few social changes within a traditional economy?
- •12/What is a command economy?
- •13/ Who makes decisions on the fundamental economic questions in a society with a command economy?
- •15/Why do the individuals have very little say as to how the basic economic questions are answered?
- •16/What is a market economy?
- •19What is a free enterprise system based on?
- •20/Who owns the means of production in a society with a market economy?
- •1. Why is the theory of supply and demand considered one of the most fundamental concepts of economics?
- •2. What is demand?
- •3. What factors alter consumer demand?
- •4. What goods are considered to be related?
- •8. What does the law of diminishing marginal utility explain?
- •9. What does the law of demand state?
- •7.What is a supply schedule?
- •8.What is a supply curve?
- •9.What does supply curve enable producers to anticipate?
- •10.What does each point along the curve represent?
- •21.How does the cost of production affect the behavior of producers?
- •24.How do future expectations affect the quantity supplied?
- •25.Why are profit opportunities considered as factors that influence the quantity supplied?
- •29.Why is elasticity important in understanding supply and demand theories?
- •31.When supply is elastic?
- •In a Market Economy
- •1.What is a price?
- •3.What is a price system?
- •12. What does the characteristic of perfect competition “no barriers to enter or exit the market” mean? .
- •7. What does legal tender mean?
- •25. What does the purchasing power of money mean?
- •8.What drawbacks do they have?
- •9.What is difference between credit and debit cards?
- •11.What is a charge account?
- •14.What is a consumer credit?
- •15.What does consumer credit provide?
- •17.What is a consumer loan?
- •21. Why is savings considered one of the ways of good money management?
- •23. What factors should be considered before staring any kind of savings program? 24. What does safety mean?
- •25. What is liquidity? •
- •29. What does the yield depend on?
- •30. What accounts are offered by depository institutions?
- •32. Why do some people put their money in savings accounts? •
- •35. Why do financial institutions charge the highest interest rates on cDs?
- •38. What steps should be taken to reach financial goals?
- •6. What is a sole proprietor responsible for?
- •15. What is a corporation?
- •16. What is the essential feature of a corporation?
- •17. Who owns a corporation?
- •23. Why does a corporation have a continuous existence?
- •27. What does double taxation refer to?
- •28. What are dividends?
- •29. What is the role of the board of directors?
7. What does legal tender mean?
Currency is a common form of legal tender in many countries. This means that it must be accepted in settlement of debts.
8. What characteristics does money have?
Although anything can serve as money, modern money should have the following characteristics: • Stability, •Portability • Durability • Uniformity •Divisibility. •Recognizability.
9. What is stability of money?
The value of money should be more or less the same today as tomorrow. When it fluctuates people will store money in the hope its value will increase, or spend it immediately thinking it will be worth less tomorrow.
10. Why do people store money or spend it immediately?
When it fluctuates people will store money in the hope its value will increase, or spend it immediately thinking it will be worth less tomorrow.
11. What is portability of money?
Modern money has to be small enough and light enough for people to carry. It especially relates to checkbooks. Check can be written in almost any amount.
12. What does durability mean as a characteristic of money?
Money has to have a reasonable life expectancy. So, durability means that modern money is made of a very high quality material that makes it possible to be in circulation over a long period of time.
13. Why is modern money in circulation over a long period of time?
Modern money is made of a very high quality material that makes it possible to be in circulation over a long period of time.
14. What does uniformity denote?
Equal denominations of money should have the same value.
15. Why is divisibility of money considered as one of its principal advantages?
One of the principal advantages of money is its ability to be divided into parts. In other words, it is easy to make change for a large denomination.
16. What is recognizability as a quality of money? Money should be easily recognized for what it is and hard to copy.
17. In what terms is money best defined?
Since money is best defined in terms of what it does, the economists describe money in terms of its four basic functions – the needs it fulfills in every society.
18. Why do economists describe money in terms of its four basic functions?
Since money is best defined in terms of what it does, the economists describe money in terms of its four basic functions – the needs it fulfills in every society.
19. How does money function?
They are a measure of value or as it is often called now a standard of value or a unit of account, a store of value, a medium of exchange, a standard of deferred payment. Money serves these functions regardless of its name or form – U.S. dollar, Japanese yen, or Ukrainian hryvna.
20. How does money perform a function of a Measure of value?
When performing a function of a measure/standard of value or a unit of account money is used as a common denominator of value for pricing goods and services.
21. What does money mean as a Store of value?
Money as a store of value enables people to use the value of something that they sell today to make a purchase sometime in the future.
22. What is money as a Medium of exchange?
Medium of exchange: Any substance or article that is used to pay for goods and services.The most important and the most easily understood function of money is to serve as a medium of exchange.
23. Why is money as a Medium of exchange considered the most important and the most easily understood function of money?
Money enables exchanges to be made easily. In a money economy people can sell what they have produced and have available to anyone and use the money to buy what they want. When money is used as a medium of exchange, it distinguishes from other assets such as real property, bank deposits, securities, etc
24. Why does performing a function of a standard of deferred payment differ from other functions of money? Being one of the defining functions of money a standard of deferred payment means that a contract or agreement may specify (or imply) that the repayment of a debt is made using a particular monetary unit. It differs from other functions of money in that it is not functioning as an immediate medium of exchange or store of value but, rather, as a medium by which future payments will be made.