Econ 1 pt.2

Which factor was NOT a cause of the Great Depression

-A protest against US dealings in Southeast Asia YES:- the overuse of credit -a surplus of agricultural goods leading to farmers losing their farms -high tariff passed by the US congress

What was not a part of Hamilton economic plan?

-creation of a new set of bank notes YES: passage of a tariff, tax on whiskey, creation of a national bank, paying off all debts plus interest

The ___ is an organization that works to protect consumers

Better Business Bureau

Which government agency deals most directly with consumers and their rights and protection

Federal Trade Commission

What is the purpose of interest

It allows lenders to make money in exchange for giving money to those who need it

Where can you find the agency responsible for putting together business cycle information-- in particular, when the cycle peaks and plummets

a private company not found within the government

A country's economic peak is followed by ____

a recession

What is a market economy?

a system in which the market (consumers) determines the major questions of economic production and development

The lowest period for a country's GDP is called

a trough

one of the major causes of the economic downturn of 1819 was ___

a wave of over speculation in the western frontier territories

Which of these would not add to the GDP of the US

an american based investment firm in switzerland

One major cause of the 2008 financial crisis

banks made risky loans and inflated housing prices

Transactions in a traditional economy are both typically done with _____

barter and trade

the trading of one item to receive another item; creates a double coincidence of wants

barter system

The federal government was weakened under the articles of confederation so congress did not have the power to

collect taxes and regulate commerce

an economy in which all decisions are made by the government with little to no input by the people

command economy

The conduction of business is called ____

commerce

_____ originated in the ideas of Marx and Engels that taught that all citizens should have the same wealth and social standing

communism

form of government that stemmed from the economic ideas of Karl Marx and preaches the idea that all citizens should be equal in wealth and status

communism

The _____ was a pamphlet of communist economic thought

communist manifesto

a person who places money in a bank

depositor

a recession that is very long and severe

depression

requires that, in a transaction, people have something the other wants and are willing to give it up for that other item

double coincidence of wants

weighs the costs and benefits of each measure before making an economic decision

economic perspective

What is not a characteristic of a command economy

encouraging the pursuit of wealth

An economy going from the trough to the peak is said to be in a state of ___

expansion

a rise in prices due to the loss of value of money

inflation

Which of these is not a characteristic of a market economy

lack of private ownership of resources

Consumers and sellers create a ____ where goods and services are exchanges

marketplace

a problem created by unlimited wants and limited resources

scarcity

money owed that is guaranteed by the thing it is used to purchase

secured debt

The idea of ____ is that both the buyer and seller will do what is right in order to maintain a trading relationship

self-interest

In order for a country's economic condition to be considered a recession, the economy and GDP must be in decline for ___

six months

farming that is done simply to feed the family of the grower and not to sell goods for a profit

subsistence farming

Mixed economy

system which government controls vital industries while allowing market principles to exist, such as private ownership of business and property

Foreign countries convinced the US to form a stronger federal government by ___

taking advantage of the young republic

A _____ is a tax on goods imported from other countries

tariff

Which war and subsequent agricultural surplus helped cause the 1857 depression

the Crimean war

The inventors of mixed economy system, chief among whom was RH Tawney came from

the UK

in 1837, president Andrew Jackson caused a depression for martin van burn during his flight

the bank of the US

The concept of a double coincidence of wants in the instrumental part of ____

the barter system

Fluctuations through a series of economic expansions and contractions is part of

the business cycle

What is opportunity cost

the cost associated with giving up something in order to get something else; balancing the costs and benefits is a major factor in economic decisions

concepts of the market economic system stem from which movement

the enlightenment

What was Thomas Jefferson's arguments against the creation of a national bank

the government did not have the constitutional authority to do so

What is scarcity

the problem that arises with limited resources and unlimited wants

those suffering from the 1873 depression pushed for ____

the reissue of greenbacks dollars from the civil war

Which rights were included in JFK's speech on consumer rights?

the right to choose, the right to safety, right to be informed, and the right to be heard when a problem arises NOT: right to redress

Economically, the government divides its earning marks into quarters or every ___

three months

What is the biggest responsibility that consumers have

to educate themselves on the products they are interested in, including their benefits and potential costs or problems

A _____ government holds near complete control over the lives of its citizens

totalitarian

a centralized government with near-complete control over the lives of citizens

totalitarian

A ______ economic system is characterized as agricultural and lacking in technology

traditional

system under which people within a community perform the same economic functions as their forefathers and ancestors

traditional economic system

the french word for a member of the working class is _____

proletariat

Which country or region best exemplifies a traditional economy

Amazon Rain forest and South America

a french word that explains the working class as written by Karl Marx and Fried rich Engles

proletatiat

Which scenario best explains scarcity

A man has 20 dollars but wants to take his girlfriend to a fancy steak restaurant where he needs 70 dollars

Which decision is not made using an economic perspective?

A young man buys an old car without thinking about the costs associated with fixing the vehicle, and the fact that it will probably only last four months

Which philosopher is most associated with free market economy based on self interest

Adam SMith

______ attempted to explain how capitalism could end in a worker-operated government without social classes

Das Kapital

Which was one of the first three departments of the early American government

Department of State

Why might the states be upset at the federal government paying off their debts

The states did not want to be an answerable to the federal government and therefore be put in a weaker position

Which of these would NOT add to the GNP of the US

a German based grocery store in Illinois

Credit refers to ____

a consumers record of going into and getting out of debt in a faithful and punctual way

What scenario would you most likely see in a traditional economy

a farmers grows crops that his family will need over the extent of a growing season

What is economic perspective

a method of making economic decisions by first weighing the benefits and costs associated with each measure

the government controls some but not all industries in a ____ economic system

mixed

there is a little chance to gain wealth or succeed in a ___ economy system

mixed

Choosing between spending money on a new suit or vacation is an example of ____

opportunity cost

Which of these scenarios best represent what you miss out on when you decide to spend your money on something else

opportunity cost

the term used for the overvaluing of property or land

overspeculation

the point at which a county's GDP and economy reach top efficiency and are immediately followed by a downturn

peak

When a shopper makes a rational choice, he or she ______________.

picks the item that represents the greatest value

the depression of 1893 was directly responsible for the growing popularity of the ____party

populist

_____ is the primary motivation factor in a market economic system

profit

money owed that impose a higher interest rate because repayment is not guaranteed

unsecured debt