12th Grade Economics Final Study Guide – Flashcards
Unlock all answers in this set
Unlock answersquestion
Market economy
answer
people and firms act in their own best interests to answer the WHAT, HOW, and for WHOM questions
question
Scarcity
answer
the condition that results from society not having enough resources to produce all the things people would like to have
question
Inflation
answer
a rise in the general level of prices - occurs, workers need more money to pay for food, clothing, and shelter
question
Partnership
answer
unincorporated business owned and operated by two or more people who share the profits and have unlimited liability for the debts and obligations of the firm; same as general partnership
question
Need
answer
a basic requirement for survival and incldues food, clothing and shelter
question
Conglomerate
answer
firm with four or more businesses making unrelated products, with no single business responsible for a majority of its sales
question
Good
answer
an item that is economically useful or satisfies an economic want, such as a book, car, or compact disc player
question
Cooperative
answer
non-profit association performing some kind of economic activity for the benefit of its members
question
Trade-offs
answer
alternative choices, whenever they make an economic decision
question
Free-enterprise
answer
is another term used to describe the american economy
question
Economic system
answer
an organized way of providing for the wants and needs of their people
question
Want
answer
a way of expressing a need
question
Producer cooperative
answer
health plans established by association of hospitals service and care, and medical and surgical
question
non-durable good
answer
a good or product that are consumed or are only usable for a shant period of time because thing wear out or become useless
question
Voluntary exchange
answer
the act buyers and sellers freely and willingly engaging in market transactions
question
Opportunity cost
answer
the cost of the next best alternative use of money, time, or resources when one choice is made rather than another
question
Capital
answer
the tools, equipment, machinery, and factories used in the production of goods and services
question
Multinational
answer
corporation producing and selling without regard to national boundaries and whose business authorities are located in several different countries
question
Corporation
answer
forms of business organization by law as a separate legal entity with all the rights and responsibilities of a individual
question
Fixed income
answer
an income that does not increase even though prices go up - find that bills are harder to pay and that planning for the future is more difficult
question
Microeconomics
answer
branch of economic theory that deals with behavior and decision making by small units such as individuals and firms
question
Market equilibrium
answer
condition of price stability where the quantity demanded equals the quantity supplied
question
Substitution effect
answer
the portion of a change in quantity demand due to a change in the relative price of the product
question
Public disclosure
answer
requirement forcing a business to reveal information about its products or its operations to the public
question
Marginal utility
answer
satisfaction or usefulness obtained from acquiring one more unit of a product
question
Monopoly
answer
market structure characterized by a single producer
question
Supply elasticity
answer
responsiveness of quantity supplied to a change in price
question
Price floor
answer
lowest legal price that could be charged for a product
question
Laissez-faire
answer
philosophy that government does not interfere with business activities
question
Fixed cost
answer
cost of production that does not change when output changes
question
Equilibrium price
answer
price where quantity supplied equals quantity demanded; price that clears the market
question
Demand
answer
combination of desire, ability, and willingness to buy a product
question
Income effect
answer
that portion of a change in quantity demanded caused by a change in a consumer's real income when the price of a product changes
question
Variable cost
answer
production cost that varies as output changes, labor, energy, raw material
question
Externality
answer
economic side effect that affects on uninvolved third party
question
Diminishing marginal utility
answer
decreasing satisfaction or usefulness a additional units of a product are acquired
question
Price ceiling
answer
maximum legal price that can changed for a product
question
Production function
answer
graphic portrayal showing how a change in the amount of a single variable input affects total output
question
Monopolistic competition
answer
market structure having all conditions of pure competition except for identical products; form of imperfect competition
question
Oligopoly
answer
market structure in which a few large sellers dominate and have the ability to affect prices in the industry; form of imperfect competition
question
Industrial union
answer
labor union whose workers perform different kinds of work
question
Central bank
answer
a national bank that provides financial and banking services for its country's government and commercial banking system, as well as implementing the government
question
federal budget
answer
annual plan outlining proposed expenditures and anticipated
question
Trust funds
answer
special account used to hold revenues designated for specific expenditure such as Social Security, medicare, or highways
question
Municipal bond
answer
bond, often tax exempt, issued by state and local governments; known as munis
question
Modified union shop
answer
a company that has made an agreement with a labor union stating that current employees may choose to join the union or not, but all new employees will be required to become members
question
international revenue service
answer
branch of Treasuring Department that collect taxes
question
Non-bank financial institution
answer
non-depository institution that channels saving to investors; finance companies, insurance companies, pension
question
Incidence of a tax
answer
final burden of a tax
question
Commodity money
answer
money that has an alternative use a commodity; gunpowder, flour corn
question
Cyclical unemployment
answer
unemployment directly related to swings in the business cycle
question
Monetize the debt
answer
process of creating enough additional money to offset federal borrowing so that interest rates remain unchanged
question
National-income accounting
answer
system of accounts used to track the nation's production, consumption, savings and income statistics
question
Aggregate demand
answer
the total quantity of goods and services demanded at different price levels
question
Depression scrip
answer
currency issued by towns, chambers of commerce, and other civic bodies during the Great Depression of the 1930s
question
Population pyramid
answer
diagram showing the breakdown of population by age and sex
question
Wage-price controls
answer
policies and regulations making it illegal for firms to give raises prices
question
Real GDP
answer
Gross Domestic Product after adjustments for inflation; same as GDP in constant dollars
question
Fractional reserve system
answer
system requiring financial institutions to set aside a fraction of their deposits in the form of reserves
question
Workfare
answer
program requiring welfare recipients to provide labor in exchange for benefits
question
Zero population growth
answer
condition in which the average number of births and deaths balance so that population size is unchanged
question
Imports
answer
the goods and services that a nation buys from other nations
question
Great Leap Forward
answer
China's diasrtous second five-year plan begun in 1958 that forced collectivization of agricultural and rapid industrialization
question
Acid rain
answer
pollution in form of rainwater mixed with sulfur dioxide, a mild form of sulfuric acid
question
Collateral
answer
property or other security used to guarantee repayments of loan
question
Tariff
answer
tax placed on impacted product
question
Free-traded area
answer
group of countries that have agreed to reduce trade barriers among themselves, but lack a common tariff barrier for non-members
question
Foreign exchange rate
answer
price of one country's currency in terms of another currency
question
Keiretsu
answer
independently owned group Japanese firms joined and governed by an external board of directions in order to regulate
question
Nonrenewable resources
answer
natural resources that can't be replenished for future use
