Econ final
Which scenario best explains scarcity?
A man has $20 but wants to take his girlfriend to a fancy steak restaurant, where he needs $70.
This organization provided an obstacle to banking during the Middle Ages.
Roman Catholic Church
_____ might lead a business to reduce prices on a certain smartphone because the manufacturer is likely to soon introduce a new model.
expectations
Explicit costs are measured by ____.
expenditures paid for with money
A(n) ______ cost, such as labor or machinery, is easily identifiable.
explicit
A(n) ___ occurs when a business increases its facilities and workforce by the same percentage and output increases by a larger margin while costs decrease.
economy of scale
The amount of ______ available will always be fixed.
resources
A protective ______ is used in an attempt to protect a country's businesses.
tariff
The creators of the mixed economic system were from ______.
the United Kingdom
A man has $20 but wants to take his girlfriend to a fancy steak restaurant, where he needs $70.
the barter system
Fluctuations of expansion and recession are part of ___.
the business cycle
measures the amount of a good that consumers are willing and able to purchase at a specific time
demand
The loss of capital due to wear and tear is ______.
deprecation
The loss of capital to normal wear and tear is the _____.
deprivation
Smart investors use _____ to spread their money among multiple investments.
diversification
Safe stock companies often make these regular payments to shareholders.
dividends
A relatively new form of money that is growing in popularity is _____.
e-cash
_______ profit is total cost subtracted from total revenue.
economic
A(n) ______ might be used to prevent unhealthy products from entering a country.
embargo
The _____ price is the point where quantity demanded and quantity supplied are equal.
equilibrium
This is a measure of the value of a house to a homeowner after subtracting any loan balance.
equity
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
The wages paid to employees are an example of a(n) _____ cost.
explicit
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
This goes into effect every October 1st.
federal budget
_____ money must be accepted as such by law.
fiat
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
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
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
Members of the Fed's Board of ______ serve 14-year terms.
governors
A deli buys 40 pounds of salami for its famous grinder sandwiches. The salami is an example of ___ goods.
intermediate
Labor is the only variable when making a(n) _______ production decision.
short-term
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
Who is most likely to benefit from an economy of scale?
larger companies like target
This affects one's future earning potential more than anything else.
level of education
Every state requires drivers to have this insurance.
liability insurance
Only the ________ costs associated with the factors of production are variable
long-term
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
A(n) ____ of payment is a way in which to settle a debt.
means
_____ policy is what controls money in circulation.
monetary
A(n) ______ loan is one in which the property purchased secures the loan.
mortgage
This type of investment was created to help investors pool money and benefit from professional money managers.
mutual funds
This organization enjoys the benefit of operating as a legal monopoly
national football league
______ is a dangerous economic condition whereby inflation and unemployment rise at the same time.
stagflation
This type of loan charges the same rate and payments for the life of the loan.
standard fixed rates
This is another name for a new business.
startup
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
the condition present when supply exceeds demand in a market
surplus
Who makes the fundamental economic decisions that drive a market (capitalist) economy?
the consumers
President Richard Nixon severed all connections between the dollar and ___.
the gold standard
market economic system
the pursuit of self-interest that keeps everyone honest normally, some form of a democratic government that limits its involvement in the economy power and influence of the consumer to direct the economy private ownership of resources, business, or property
These include credit unions and savings and loans associations.
thrift institutions
These short-term loans charge very high fees and interest rates.
paycheck loans
When a shopper makes a rational choice, he or she may ___.
pick the item that represents the greatest value
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
________ product is the entire amount of a product produced during a certain time period.
total
In a(n) __________ economy, transactions are typically done through barter rather than currency.
traditional
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
President Andrew Jackson destroyed the ______ of the United States.
Bank
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
The ______ movement influenced the foundational ideas of the market economic system.
Enlightenment
The Fed sets policy at the ___ meetings.
Federal Open Market Committee's
The _____ System was created during the Woodrow Wilson administration.
Federal Reserve
With support from the _______ Party, R.H. Tawney pushed Great Britain toward a mixed economic system.
Labour
___ states that real GDP will decline 2% for every 1% increase in unemployment
Okun's Law
The depression of 1893 was directly responsible for the growing popularity of the ______ Party.
Populist
The government made its first move to regulate the economy.
Sherman Antitrust
Dividing the total products produced by the number of workers is the way to compute ______.
productivity
_______ is the average of total products produced divided by the number of workers.
productivity
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.
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
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 consumers choice
A country's GDP economic peak is followed by ____.
recession
This event exposed the need for and led to a more centralized banking system in the United States.
revolutionary war
Every commercial bank must be sanctioned by the U.S. Department of the ______.
Treasury
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
A(n) _____ must give up valuable assets to help pay debts when declaring bankruptcy.
borrower
If the Fed wanted to risk inflation by encouraging growth, it would ___.
buy securities in the open market
All the equipment used to make a new business product is part of a company's _______.
capital
A carpenter who loses work during the winter every year experiences _____ unemployment.
seasonal
A _____ is a charge for financial advice or a transaction.
commission
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
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.
cynical
According to the law of ______, the demand for a product will increase when prices decrease.
demand
Seeking a financial advisor is an especially good idea for _____ investors.
passive
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
A(n) _____ advantage is held by the economy that produces the highest total number of items.
absolute
___ cost is the total of all expenditures a business makes including the depreciation of any capital.
accounting
This is what remains after all accounting costs have been paid.
accounting profit
Which answer is a long-term decision for an automobile company?
adding an assembly line to build a new model of automobile
As ______ increases, demand for normal goods also increases.
income
Marginal cost is a measure of the extent of the costs associated with ___.
increased production
The performance of a segment of a market or even an entire market may be tracked by a(n) _____.
index
This type of account allows an individual who earns income to make tax-deferred investments for retirement.
individual retirement account
Which of the following would happen if the Fed were to sell securities?
interest rates go up
__ profit is the minimum profit matching what could be gained by doing something else.
normal
______ is the moving of services or production to another country in order to save money.
offshoring
______ cost is what is given up when a company decides to commit capital to a certain course of action.
opportunity
The things you miss out on when you decide to spend your money on something else are considered ___.
opportunity costs
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
