LifePac Grade 12 Economics: Unit 7 Test 1207

provided not for his own infidel

"But if any ______________________________________, and specially for those of his own house, he hath denied the faith, and is worse than an ________________."

Board of Governors

A ______________________________ and the Federal Open Market Committee oversee the operation of the Fed.

borrows from

A bank might be seeing a hard pull on its deposits, so it ________________________ the Reserve Bank.

rebate

A deduction from a full purchase amount that is repaid to the consumer is called a _______________.

raise prices

After the trusts had eliminated the competition, they would cut back on production and __________________________.

rob Leviticus

An important part of a Christian's obligation as management is to be fair to his workers. "Thou shalt not defraud thy neighbor,, neither _________ him: the wages of him that is hired shall not abide with thee all night until the morning" (_________________ 19:13)

"Let the buyer beware"

Caveat Emptor

1914, legislation that stood against monopolies, particularly in the area of price-fixing

Clayton Antitrust Act

incentive

Encouragement to strive for higher goals or profits is called ___________________.

Higher prices No rival competition or alternative markets Lower quality Limitation or elimination of certain goods Poor service and attitude

Five dangers of a monopoly

Clayton Antitrust Act

In 1914 the ________________________________ prevented a merging of corporations to have intertwined boards of directors.

return policy warranty

In shopping, be sure to check prices on comparable items. It is also a good idea to check the store's __________________ and __________________________.

communicate

It is the manager's job to ______________________ the wishes of top management in such a way as to motivate employees to carry out these wishes.

bankruptcy court

Legal proceedings that deal with the concerns of those who declare insolvency are held in a _____________________________________.

masters Master fear

Paul wrote to the Ephesians (Ephesians 6:9), "And, ye _______________, do the same things unto them, forbearing threatening: knowing that your ________________ also is in heaven; neither is there respect of persons with him." Management by ____________ has no place in Christian management.

anti-monopoly act awarded victim of a monopoly three times amount his business lost

Sherman Antitrust Act, 1890

electric companies

Some businesses have stricter guidelines, even have their prices regulated. These price-regulated businesses are normally monopolies like _______________________________.

distribute the cash to financial institutions

The Fed Banks

rules on application from banks who want to merge

The Federal Reserve

credit reserve

The Federal Reserve System has the authority to expand ___________ in case of a national emergency, set limits on the ______________, and manage America's supply of money.

stock market

The Securities and Exchange Commission regulates the __________________________.

checking account

The U.S. Treasury keeps a ____________________ with the Federal Reserve.

stock market

The ______________________________ began in an area known as Wall Street in New York.

continual debt

The exhortation by Paul to "owe no man anything," meaning that _________________________________ is not pleasing to the Lord.

purchasing technological advances

The purpose of deregulation is to open up the doors of competition to many businesses in order to offer consumers greater choice in ________________ services or products, to lower rates, and to encourage _____________________ through competition.

the section of the U.S. Code which deals with the rules and procedures of Bankruptcy

Title 11

False

True or False Risk-taking management which involves making the basic decisions that affect the future of the business is called operational management.

True

True or False The histories of Great Britain and France are filled with terrible stories of debtors' prisons and penal colonies where people were sent for the simple transgression of an inability to pay their debts.

True

True or False Walt's fellow workers are going on strike since the price of food has increased dramatically within the last 14 months. They are looking to get a higher salary. This continual rise in salary and consumer goods prices in known as a wage-price spiral.

True

True or False Concerning Southwest Airline's success, researchers agree on one point: treat everyone with kindness and respect.

True

True or False In a bankruptcy, the priority debts- the debts that the court feels should be paid first- are paid, then the unsecured debts are added up.

True

True or False Inflation = More money + Fewer goods.

True

True or False Jesus taught financial responsibility to the government.

True

True or False Monopolies are judged by how strong the competition is between the companies.

True

True or False When banks borrow money from a Federal Reserve Bank, they are given a certain interest rate to pay back the loan. If the Federal Reserve System raises the rate of interest, the banks will find it harder to make loans.

entrepreneurship operational management

What are the two aspects of management?

inflation

When the money supply is increasing faster than the supply of goods and services, it is called ____________________.

open-market operations change the discount rate change reserve requirements

Which three ways does the Fed manage the country's money supply?

Acting ethically

________________________ is acting within the good principle of society and within the accepted rules of proper behavior.

the act of being declared legally insolvent

bankruptcy

codes and rules instituted for the safety of a structure and the well-being of its inhabitants

building standards

a governmental regulation; a mandate which is instituted to safeguard the purchaser

consumer protection law

legally binding written agreement between purchaser and seller

contract

realigning or adjusting to meet new qualification or needs

restructuring

obligation to pay to another a certain amount of money which has collateral that the creditor may seize

secured debt

work done for others

service

growth through successful scientific research and strength

technological advance

the dropping or relaxing of restrictions and limits

deregulation

Fed Reserve-set interest rate to determine the amount needed to pay back the loan

discount rate

the dividing, sale, or liquidation of a corporation

divestiture

a principle or value

ethic

a government investment in businesses, guaranteeing repayment

government securities

central points of business

hubs

a continuing increase in prices and weakening of the purchasing power of money

inflation

granting of official permission to perform a business

licensing

the right to take, sell, or hold property as security or payment of a debt

lien

the combining of two or more corporations or businesses

merger

no rivals or competitors in the marketplace

monopoly

an instrument used to measure the distance traveled by a vehicle

odometer

actual money's worth for buying products

purchasing power

amount of money the Fed needs to have as a balance

reserve requirements

unofficial mergers formed to control prices and production in the marketplace

trust

a promise or obligation to pay to another a certain amount of money which has no collateral

unsecured debt

wage increases that compete with higher consumer prices in an ever-escalating upturn

wage-price spiral

a guarantee that is legally binding to the company who issues it

warranty

specific district allowances and restrictions, usually governing the flow of business

zoning laws