Econ final

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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


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