Abeka Economics Test 6 chapters 1-14 – Flashcards
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determines the value of a good by a consumer
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utility and scarcity
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the basic component of capitalism besides limited government, freedom of enterprise , and competition
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property rights
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When the supply of good increases, what deceases?
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equilibrium price
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An economic system bases production of goods on customs and habits
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traditional
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An economic system which is regulated by public sector
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command
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economic system which is guided by the choices made by the private sector
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free enterprise
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was one of the first antitrust laws enacted in the United States
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Sherman Act
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the sum cost of all the factors of production used in making goods
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total cost
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composes the "American system" of mass production
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Standardized parts
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checking account
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transaction account
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guarantees a certain interest rate and has a specified maturity date
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CD
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a function of money that allows people to compare the worth of one good with that of another good
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measure of value
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the value of all finished goods and services produced within a country during a year's time
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GDP
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type of market model is dominated by only a few firms
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oligopoly
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type of market model provides differentiated products
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monopolistic competition
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type of market model results in firms that are price takers
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perfect competition
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a type of market model results where there is only one supplier of a goods for which there is no substitute
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monopoly
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safest way to invest in a corporation
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bonds
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An agreement among the United States , Canada and Mexico to encourage free trade
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NAFTA
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the organization that holds a policy of 'most favoured nation'
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WTO
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originally established to monitor currency exchange
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IMF
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a type of monopoly that is a copyright on a novel
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legal
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type of good is an oven used to bake bread in a bakery
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capital
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the relationship between a good's price and the amount people are willing to buy
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demand
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usually results when a government fixes a good's price above the equilibrium price
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surplus
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total amount invest in the production of a good
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input
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the ability of an entity to produce a good at an opportunity cost that is lower than that of another producer
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comparative advantage
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the result of too much money in circulation
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inflation
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the system controls that controls the money supply of the United States
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Federal Reserve
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a system for the production , distribution and consumption of goods
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economy
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Besides time and rate of return what else determines how much an investment grows
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amount invested
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author of "The Wealth of Nations"
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Adam Smith
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global organization was created to maintain international peace
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United Nations
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a french group whose members wee some of the earliest influential advocates of laissez-faire economics
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physiocrats
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factors of production
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natural resources, labor, capital, entrepreneurship
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large, complex organization composed of appointed officials and numerous departments
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bureaucracies
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intangible good produced for which people expect to pay
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service
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mechanism that allows people to exchange goods
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market
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separates the work to be performed into individualized tasks
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division of labor
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used to determine how much of a good to buy or sell
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market signal
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allows a country to produce those goods in which it has absolute or comparative advantage
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geographic specialization
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commits resources to a purpose expected to provide future gain
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investment
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value of the best alternative that if foregone when a different alternative is taken
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opportunity cost
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deals with the study if specific components within a major economy
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Microeconomics
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states that as one's supply of goods increases, the satisfaction derived from each additional unit tends to decrease
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diminishing marginal utility
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when the prices fall the quantity supplied tends to ?
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decrease
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A population increase will cause change in?
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demand
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If the price of a certain type of cereal doubled and caused consumers to cut in half the amount of that cereal they bought, the demand for that good would be?
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elastic
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What type of contract forces the consumer to buy certain products before he can buy the ones he really wants is what?
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tying
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When division of labor is carried past the point of maximum efficiency, the result is what?
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overspecialization
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anything that is generally accepted as means of payment
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Money
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This banking is a system that allows banks not to hold all their deposits in reserve
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Fractional Reserve
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is legal tender that is backed by nothing but a government's promise
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Flat money
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is caused when the demand becomes greater than the supply
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Demand-pull
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trade agreements respect national sovereignty and allows countries to consider their national and moral interests
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Bilateral
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primary responsibilities of the government
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rewarding good and punishing evil
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A prosperous economy depends upon ? the trait of doing quality work in a efficient manner
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industriousness
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Physiocracy
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Pierre Samuel du Pont
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standardized parts
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Henry Ford
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monetarism
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Milton Friedman
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" Bad money drives out good"
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Sir Thomas Gresham
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prophet of doom
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Thomas Robert Malthus
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Das Kapital
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Karl Marx
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Diamond-Water Paradox
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Carl Menger
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supply-side economics
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Ronald Reagan
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comparative advantage
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David Ricardo
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New Deal
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Franklin Roosevelt
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invisible hand
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Adam Smith
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American system of mandatory social insurance
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social security
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highest point of the business cycle
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peak
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the business cycle in which industries increase the amount of goods they produce
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expansion
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official currency of the European Union
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euro
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It was established at the end of World War II to provide capital needed to rebuild war-torn Japan and Western Europe
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World bank
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German city that was divided during the Cold War
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Berlin
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designed to require nations to buy allowances of "carbon Credits" to decease CO2 and reduce the greenhouse emissions
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Kyoto Protocol
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advocates the stockpiling of gold and silver in the state's treasury
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mercantilism
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reducing taxes makes more money available for private investment, thereby increasing productivity
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supply-side economics
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advocates massive public spending during recessions
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Keynesianism
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regards the entire world as one giant community that should be unified politically and economically
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globalism
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based upon public and governmental control of the production and distribution of nearly all national resources
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Communism
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the exclusive power of an independent state to rule and regulate internal affairs without foreign interference
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national sovereignty
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can seep into an economy without the majority of people realizing that their foundational freedoms are being dissolvedaway
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socialism
