Econ
Which scenario best explains scarcity?
A man has $20 but wants to take his girlfriend to a fancy steak restaurant, where he needs $70.
Filling out the ____ is the best way to pursue federal loans, grants, and work-study.
Free Application for Federal Student Aid
Why were some of the states upset at the federal government paying off their debts?
The states did not want to be answerable to the federal government and therefore be put in a weaker position.
President Andrew Jackson destroyed the ______ of the United States.
bank
enables college expenses to reduce one's tax burden dollar for dollar
education tax credits
money for education that must be repaid after one graduates or otherwise leaves school
federal loans
The Fed sets policy at the ___ meetings.
federal open market committee's
The _____ System was created during the Woodrow Wilson administration.
federal reserve
Which factor is NOT used to calculate a credit score?
one's type of employment
A(n) ______ company does not have or allow trading of its ownership by stockholders.
private
In the circular flow model, the resource market sends ___ to the government.
resources
This event exposed the need for and led to a more centralized banking system in the United States.
revolutionary war
the condition present when supply exceeds demand in a market
surplus
In the circular flow model, businesses send ___ to the government.
taxes
_______ life insurance will only pay a benefit if the insured person dies within a certain time period.
term
The concept of a "double coincidence of wants" is the instrumental part of ___.
the barter system
Fluctuations of expansion and recession are part of ___.
the business cycle
President Richard Nixon severed all connections between the dollar and ___.
the gold standard
The loss of capital to normal wear and tear is the _____.
depreciation
_____ insurance is designed to help workers who are not physically able to work.
disability
Businesses have a legal responsibility to make certain accommodations for ____ customers.
disabled
Dividing your money among multiple investments is the principle of ___.
diversification
Smart investors use _____ to spread their money among multiple investments.
diversification
A company may pay a(n) ______ out of earnings to stockholders.
dividend
Safe stock companies often make these regular payments to shareholders.
dividends
A(n) ____ payment is a percentage of the full purchase price and is meant to prove a buyer's intent
down
A relatively new form of money that is growing in popularity is _____.
e-cash
If a loan is not repaid, a lender may claim this promised item of value.
security
A(n) ______ might be used to prevent unhealthy products from entering a country.
embargo
Which answer is NOT characteristic of a command economic system?
encouragement of the pursuit of wealth
A legal ______ is a group or organization recognized by the government as such.
entity
The _____ price is the point where quantity demanded and quantity supplied are equal.
equilibrium
The worth or value of a home to an owner after subtracting any home loan is the ________.
equity
This is a measure of the value of a house to a homeowner after subtracting any loan balance.
equity
This basket of stocks or other investments may be traded in real time just like a stock.
exchange-traded fund (ETF)
An economy going from the trough to the peak is said to be in a state of _______.
expansion
An example of ___ is increasing government spending.
expansionary fiscal policy
_____ might lead a business to reduce prices on a certain smartphone because the manufacturer is likely to soon introduce a new model.
expectations
The wages paid to employees are an example of a(n) _____ cost.
explicit
The trend of marginal utility is to increase as consumption increases.
false
The Free Application for Federal Student Aid is the best way to pursue _______ aid for college expenses.
federal
_____ student loans do not have to be repaid until after a student finishes attending college.
federal
The Takings Clause is a part of the ___.
fifth amendment
A rental car company buys 30 new automobiles. The automobiles are examples of ___ goods.
final
You buy a brand-new television. The television is an example of a(n) ___ good.
final
A good ______ advisor can help you wisely manage your investments.
financial
_____ money must be accepted as such by law.
flat
The mortgage and interest payments can fluctuate as interest rates change in a ___ loan.
flexible-rate
What is the purpose of interest?
for the lender to make money in exchange for giving money to those who need it
If a homeowner can no longer pay the home loan, the lender will likely _____ on the property.
foreclose
The taking over of a home by a lender once a homeowner can no longer pay for his or her home loan is a(n) ______.
foreclosure
Which is NOT a component of the free enterprise system?
freedom from all government involvement
An employee who leaves a job to be closer to home experiences ______ unemployment.
frictional
A(n) ___ is an example of a commodity.
gallon of milk
Homebuyers show they are serious by ____ before shopping for a home.
getting pre-approved for a loan
Members of the Fed's Board of ______ serve 14-year terms.
governors
direct aid based on eligibility that does not have to be repaid
grant
A deli buys 40 pounds of salami for its famous grinder sandwiches. The salami is an example of ___ goods.
intermediate
a condition that exists whenever demand exceeds supply
shortage
One ideal of the American Dream is to own a(n) _____ home not connected to any other building.
single-family
A ship-building company buys 50 tons of lumber to build classic-style ships. The lumber is an example of ___ goods.
intermediate
a home not connected to any other buildings that embodies the ideal of the American Dream
single-family home
When interest rates go down, bond fund prices go up because ___.
investors will pay more for older bonds with higher interest rates
Which factor most impacts a person's future earning potential?
level of education
Every state requires drivers to have ____ insurance.
liability
______ insurance is typically used to care for a policyholder's family in case of death.
life
Developing a new and improved aircraft is an example of a(n) _____ business decision.
long term
Investors who take too little risk might _____.
lose purchasing power and miss out on the power of compound interest
The importance of the Constitutional right to private property lies mainly in the ability to ___.
make profit in the sale or operation of private property
an economical residence made of lesser-quality materials susceptible to storms
manufactured home
The additional cost required to produce one more product is ___.
marginal cost
A loan or CD must be repaid when it reaches ______ after a certain period of time.
maturity
A(n) ____ of payment is a way in which to settle a debt.
means
Who has the absolute advantage in selling salads?
mike
allows members to receive aid for college through the Montgomery G.I. Bill
military aid
_____ policy is what controls money in circulation.
monetary
This type of savings account offers a higher interest rate but requires a higher balance.
money market
A loan in which the property purchased secures the money borrowed is a(n) ______.
mortgage
A(n) ______ loan is one in which the property purchased secures the loan.
mortgage
_______ funds were created to pool investors' money and encourage small, periodic investments.
mutual
This type of investment was created to help investors pool money and benefit from professional money managers.
mutual funds
______ is a dangerous economic condition whereby inflation and unemployment rise at the same time.
stagflation
The stock performance of hundreds of America's largest companies are tracked by this index.
standard & poor's 500 index
Traditional ____ loans have the same rate and payments for the life of the loan.
standard fixed-rate
This type of loan charges the same rate and payments for the life of the loan.
standard-fixed rate
This is another name for a new business.
startup
The price of a(n) ____ represents investors' collective expectations of a company's future growth and profits.
stock
A marketplace where stocks are bought and sold is a(n) ______.
stock exchange
This represents investors' expectations concerning the future profits and growth prospects of a publicly traded business.
stock price
______ typically increase in value over time due to employee labor, new trade opportunities, new ideas, and technological advancements.
stocks
Government mismanagement of the economy is the cause of _____ inflation.
structural
____ goods are goods that can be used in place of another.
substitute
the amount of a service to consumers that producers are willing and able to provide
supply
A protective ______ is used in an attempt to protect a country's businesses.
tariff
Who makes the fundamental economic decisions that drive a market (capitalist) economy?
the consumers
These include credit unions and savings and loans associations.
thrift institutions
replacing a DVD player with a device that can stream videos
new goods effect
____ loans are undesirable because they involve very high interest rates and fees.
paycheck
offered by independent businesses as an advance on the customer's wages
paycheck loan
When a shopper makes a rational choice, he or she may ___.
pick the item that represents the greatest value
The depression of 1893 was directly responsible for the growing popularity of the ______ Party.
populist
government intervention that typically results in a shortage in the market
price ceiling
government intervention that typically results in a surplus of services and goods
price floor
The amount borrowed in a loan and that is used to calculate interest payments is the ___________.
principal
a residence that has a small backyard and front porch and shares walls with other homes
townhome
In a(n) __________ economy, transactions are typically done through barter rather than currency
traditional
This agreement is reached by a buyer and seller to exchange services and goods.
transaction
Every commercial bank must be sanctioned by the U.S. Department of the ______.
treasury
The extent to which consumers receive happiness or benefit from a purchase is called ___.
utility
A function of money is to serve as a store of ______.
value
Which philosopher is most associated with the market economy?
Adam Smith
Which graph shows the effect on oil markets as a result of anti-government riots in the oil-rich country of Tunisia?
Arrow to left with S to S1
This stock exchange specializes in agricultural financial investments.
Chicago mercantile exchange
A(n) _____ is a charge for a financial transaction or advice.
Commission
Which answer was NOT a weakness of the Articles of Confederation
Congress could not negotiate treaties with foreign countries.
The _______ War and the subsequent agricultural surplus contributed to the recession of 1857.
Crimean
The ____ Industrial Average is an index tracking 30 of the most influential American companies.
Dow Jones
This index tracks 30 of the most important U.S. companies.
Dow Jones
The ______ movement influenced the foundational ideas of the market economic system.
Enlightenment
The federal government has insured ___ loans since they were created as part of a New Deal program.
FHA
The ____ requires the three major credit tracking agencies to provide you, upon request, with a free credit report every 12 months.
Fair Credit Reporting Act
This goes into effect every October 1st.
Federal budget
With support from the _______ Party, R.H. Tawney pushed Great Britain toward a mixed economic system.
Labour
This electronic stock exchange is home to many large technology company stocks.
NASDAQ
This organization enjoys the benefit of operating as a legal monopoly.
National Football League
The world's largest stock exchange is in America's largest city.
New York Stock Exchange
Which answer is NOT a reason stocks generally appreciate in value over time?
Over time, most investors hold on to stocks, creating scarcity and driving up prices.
Earnings from this account are not subject to tax if withdrawn after age 59 ½.
Roth savings plan
The government made its first move to regulate the economy.
Sherman Antitrust Act of 1
Dividing the total products produced by the number of workers is the way to compute ______.
productivity
Which answer is NOT a good way to help a charity?
provide a loan
This organization provided an obstacle to banking during the Middle Ages.
The Roman Catholic church
A(n) ____ good is something provided by the government that may be used by many citizens at the same time without reducing the benefit.
public
A(n) ______ traded company issues shares of ownership through stock offerings.
publicly
recognizing the difference between a 2001 cell phone and a 2009 smartphone
quality change effect
David Hume's ______ theory states that too much money in circulation leads to inflation.
quantity
Economically, the government divides its earning marks into ______, each of which lasts three months.
quarters
In a market or free enterprise economy, competition ensures ___.
reasonable prices and consumer choice
A country's GDP economic peak is followed by ____.
recession
This compares two sets of records to ensure accuracy.
reconciliation
The creators of the mixed economic system were from ______.
United Kingdom
Credit refers to ___.
a consumer's record of going into and getting out of debt in a faithful and punctual way
___ is an example of money.
a jar of coins
A company that can offer a product at a much lower price due to some advantage holds ___.
a natural monopoly
Which agency is responsible for putting together business cycle information, particularly when business economies peak and plummet?
a private company outside of the government
It is important to evaluate _____ before committing to an investment.
risk
Amenities, various contracts, and month-to-month arrangements are advantages of renting a(n) _______.
apartments
Which graph shows the effect on the air travel market in Dallas if a new low-cost airline goes bankrupt?
arrow left
During a(n) _____, the borrower gives up any valuable property in order to pay off his or her lenders.
bankruptcy
A(n) _____ must give up valuable assets to help pay debts when declaring bankruptcy.
borrower
Most investors use a ____ to handle investment transactions, track investments, and receive statements on a regular basis.
brokerage
If the Fed wanted to risk inflation by encouraging growth, it would ___.
buy securities in the open market
Which country or region best exemplifies a traditional economy?
rural Africa
One benefit of banks is that individuals create large pools of ________.
capital
A(n) ____ allows bank customers to keep track of their balances as they make transactions.
check register
A(n) ______ account allows customers to pay with paper "tickets" or electronic transfers drawn directly from the account.
checking
A(n) _____ account is a place to hold money while earning minimal interest.
savings
A carpenter who loses work during the winter every year experiences _____ unemployment.
seasonal
assists in the creation of a small business or to help in the advancement of that business
commercial loan
A _____ is a charge for financial advice or a transaction.
commission
A(n) ______ is interchangeable with other goods of the same kind.
commodity
switching from a soft drink to tap water
commodity substitution effect
______ insurance protects against all kinds of damage, including "acts of God."
comprehensive
apartment-like dwelling of which homeowners can own individual units
condominium
Which answer is NOT a stage of the business cycle?
consolidation
offered to individuals to meet personal or household needs
consumer loan
The _____ theory blames a rise in inflation on a rise in wage rates and the price of natural resources.
cost-push
It is required that you have good _______ in order to purchase a home.
credit
Making payments on time will boost one's ____ score.
credit
Your _____ history will determine if you are able to purchase some big-ticket items.
credit
A(n) ______ serves as a means of identification for purchases.
credit card
A(n) _____ serves a particular group only.
credit union
Ben and Jerry's lays off 500 workers during a recession, creating _____ unemployment.
cyclical
Which answer is NOT a good strategy for paying off debt?
declare bankruptcy
A bond issued and backed by the government is called a government ______.
security
A(n) ______ deposit is often taken to protect a rental agency or individual from damage caused by a renter.
security
This term describes waiting for a later, greater reward by resisting the temptation to receive an immediate reward.
delayed gratification
According to the law of ______, the demand for a product will increase when prices decrease.
demand
measures the amount of a good that consumers are willing and able to purchase at a specific time
demand
Banks periodically send out this record of activity within one's account.
statement
Seeking a financial advisor is an especially good idea for _____ investors.
passive
These short-term loans charge very high fees and interest rates.
pay check loans
Which of the following was the price of MCD at the start of the trading day?
113.72
Calculate the CPI for the current year.
168.92
In October 2010, the amount of money held by individuals and companies was $756.7 billion; checkable deposits owed by individuals and companies were $502.2 billion; money market funds were $1.895 trillion; savings deposits were $277.7 billion; time deposits were $329.1 billion. What was the M2 amount in October 2010?
3.76 trillion
Employers can match employee contributions to retirement savings.
401(k) savings plan
What is the total of the current year CPI market basket?
50.00
An investor sells 150 shares of Amazon (AMZN) stock at $35.00 and pays a $7 commission. What is the total amount of money received by the investor?
5243
This account allows individuals with income to make tax-deferred investments for retirement.
IRA
This type of account allows an individual who earns income to make tax-deferred investments for retirement.
IRA
What was the importance of the Supreme Court case Kelo v. New London (2005)?
It gave the government more power in practicing eminent domain.
____ believed the best way to reverse an economic downturn was to increase government spending.
John Maynard Keynes
About how many smartphones can China manufacture if they build 550 cargo ships?
about 15 million
A(n) _____ advantage is held by the economy that produces the highest total number of items.
absolute
The amount of an employee's income before any deductions are made is the _____.
gross wages
used to purchase private residences
home loan
As ______ increases, demand for normal goods also increases.
income
The performance of a segment of a market or even an entire market may be tracked by a(n) _____.
index
______ is the income the lender receives from loaning money.
interest
Which of the following would happen if the Fed were to sell securities?
interest rate increase
______ profit is the least amount of profit that matches what could be gained by doing something els
normal
______ is the moving of services or production to another country in order to save money.
offshoring
___ states that real GDP will decline 2% for every 1% increase in unemployment.
okun's law
_____ cost is what is given up when a business decides on a specific action plan.
opportunity
The things you miss out on when you decide to spend your money on something else are considered ___.
opportunity costs
going online to a discount website to purchase old CDs
outlet substituion effect
going to an outlet store for a new suit
outlet substituion effect
The free enterprise system is based primarily upon Americans' right to ___.
own their own business
Multiple people share the profit, loss, risk, and work of ownership in a(n) _____ business structure.
partnership