Economics Vocabulary Exam

Read the sentence. A(n) _________ loan requires the borrower to write a post-dated check for the amount he or she wishes to borrow, in addition to a fee, in exchange for cash. Which best completes the sentence?

payday

Which form of economics studies the impact of individual and business decisions on economic markets?

microeconomics

Read the sentence. ___________ is a political theory that allows for complete freedom of the individual and the absence of government. Which best completes the sentence?

Anarchism

Read the sentence. __________ is a political system that favors an economic structure run by businesses and individuals rather than the government. Which best completes the sentence?

Capitalism

Read the sentence. ___________ is a political system in which the government owns all businesses and the economy. Which best completes the sentence?

Communism

Which law, signed in 2012, gives private companies more access to capital and makes it easier for certain companies to go public on US stock exchanges?

JOBS Act

Read the sentence. __________ is a political system that favors an economic structure in which the means of production is owned and monitored by the government. Which best completes the sentence?

Socialism

Read the sentence. When the amount of a country's imports exceeds the value of its exports, this results in a __________. Which best completes the sentence?

XXX trade surplus

What is the definition of a bond?

a contract to loan money to a corporation and earn interest on a fixed schedule in return

What is creditworthiness?

an appraisal made by a lender about how likely a customer is to repay a loan as agreed

What is a plan for spending your money to meet your wants and needs?

budget

Read the sentence. The term _________ is defined as the ability of a borrower to have access to money from a lender and then to pay back the lender in the future, usually with interest. Which best completes the sentence?

credit

Read the sentence. A __________ card is issued by a credit union or bank and allows the user to purchase goods and services by electronically deducting funds directly from his or her checking account. Which best completes the sentence?

debit

Read the sentence. The term __________ elasticity is defined as a measure that demonstrates how consumers respond to changes in the prices of goods and services. Which best completes the sentence?

demand

What is defined as income available after taxes and other mandatory expenses?

disposable income

Read the sentence. The term __________ money is defined as the type of money created by government decree. Which best completes the sentence?

fiat

Read the statement. The US government issued paper money printed with green ink on the back side during the Civil War. What was this form of currency called?

greenbacks

Read the sentence. __________ is defined as the market value of all final goods and services produced in a country in a specific time frame. Which best completes the sentence?

gross domestic product

Read the sentence. The term ___________ is defined as the rise in the general price level of goods and services. Which best completes the sentence?

inflation

Which economic theory did Adam Smith propose in his book The Wealth of Nations?

invisible hand

What is the definition of economics?

laws for the home

Which form of economics studies the economy as a whole?

macroeconomics

Read the sentence. A(n) __________ is regular payment dispersed to an individual during retirement from an investment fund to which the individual or his/her employer has contributed. Which best completes the sentence?

pension

Read the sentence. A ___________ is defined as barring prices from exceeding a certain maximum. Which best completes the sentence?

price ceiling

Minimum wage is an example of what type of pricing structure?

price floor

What are the four Ps of marketing, also known as the marketing mix?

product, price, promotion, and place

Read the sentence. A(n) __________ is a security sold by a corporation in exchange for shares of ownership in the company. What best completes the sentence?

stock

What measure demonstrates how producers respond to changes in prices of products and services?

supply elasticity

Read the sentence. When the amount of a country's exports exceeds the cost of its imports, this is known as a __________. Which best completes the sentence?

trade surplus

What is the definition of scarcity?

when society does not have enough resources to produce all of the things people want