Economics and Personal Finance Midterm – Flashcards
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The total value of all goods sold to foreign countries
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exports
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The rate at which the price level of goods and services rises
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inflation
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A tariff on imports ___ the quantity of imports to the US
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decreases
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When demand is the same as supply
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equilibrium
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____ can be bought and sold through a stock exchange in publicly traded corporation?
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Stocks
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The more education, the ____ the income.
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Higher
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To stimulate the economy Governments can cut ____
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taxes
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The internet has ____ competition between firms by competition
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increased
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What is the amount of your paycheck that you have available to spend after taxes and other deductions?
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Disposable income
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To stimulate the economy Governments can spend ____
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money
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The government runs activities such as healthcare, libraries, and the postal service, BUT citizens and businesses control all other activities in the marketplace: ____ economy
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Mixed
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The government has the right to take private property for public use, but they must pay the fair value of the property
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eminent domain
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This amendment states "no person shall be...deprived of life, liberty, or property without due process of law; nor shall private property be taken for public use, without just compensation."
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Fifth Amendment
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A firm's long-run average cost decreases as production increases
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economies of scales
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When one alternative is chosen over another, the option not chosen is considered an ______ cost
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opportunity
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What are taxes paid on a house or a vehicle
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property tac
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Limited Liability ______ (LLP) "can" have foreign investors
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Partnership
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The patent system is divided into three parts:
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1) Copyright laws 2) Patent laws 3) Trademark laws
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North American Free Trade Agreement (NAFTA) includes:
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US, Mexico and Canada
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Limited Liability _____ (LLC) "cannot" have foreign investors
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Company
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Cuba cannot sell items in the US is an example of an ____
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embargo
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Intellectual property rights laws are also called _____
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Patent laws
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You complete this long form to file your taxes if you qualify
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1040A
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You complete this short form to file your taxes if you qualify
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1040EZ
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_____ is the act of controlling business behavior through a set of rules or laws
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government regulation
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What is a percentage tax on the sales price of many goods?
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Sales tax
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Government tries to supply the right amount of money to promote "healthy economic growth"
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monetary policy
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A ____ would make foreign products more expensive.
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tariff
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____ monitors issues involving child labor.
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The Department of Wage and Hours Division
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Sharon's total assets are $2,200 and total liabilities are $1,500. What is her net worth?
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$700
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____ can ratify a contract, but it cannot be enforced
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Minors
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A ____ will result in more purchasing power for the US dollar
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strong dollar
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The higher the GDP per capita, the ____ the people are
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richer
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______ sets safety standards and monitors the safety of all consumer products
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The Consumer Product Safety Commission
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What are the payroll deductions taken out of every person's paycheck?
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Medicare, State taxes, Federal taxes, Social Security
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Total value of all goods bought from foreign countries
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imports
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US currency _____ if the dollar price of a euro increases
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depreciates
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A ______ will result if the US is exporting more than importing
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trade surplus
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A tax system in which you are taxes more the LESS money you earn
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Regressive
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An increase in overall prices is called
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inflation
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"Article 1, Section 10 of the Constitution": Guarantees people and businesses the right to make contracts that are ____
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legally binding
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With a strong dollar, Foreign products become ____ for the US consumers so we can buy more for our money
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less expensive
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Monetary policy: Less money= ______ Interest rates
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Increase
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This form is sent to you by your employer at the end of the year with all your earnings, wages, tips, and taxes
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W-2
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The philosophy that the government should not interfere in the marketplace
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Lassiez Faire
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All the money spent by the government
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government spending
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Sharon's total assets are $2,200 and total liabilities are $1,500. Is Sharon solvent or insolvent?
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solvent
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_____ are intended to regulate business monopolies
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antitrust rules
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The relationship between the two main decision makers in our free market economy
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Circular flow model
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Fiscal policies are government policies that ____ the economy
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stimulate
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What are profits that distributed to stockholders?
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dividends
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Laws that give ownership rights to inventors and creators of new ideas
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Intellectual property rights
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A ____ limits the amount of the product that can be brought to the US, benefiting US producers
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quota
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How many jobs were created or lost during the past month, and helps predict whether the economy will grow or shrink in the near future
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Unemployment rate
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Monetary policy: more money= _____ interest rates
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decrease
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The interaction of demand and supply for currencies determines the _____
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exchange rate
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A tariff is a ____ on imports to the US
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tax
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This is the amount you earn before deductions
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gross pay
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When demand for a product increases, the price of that product will tend to ____
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increase
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All the money that consumers spend on goods and services
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consumer spending
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A tax system in which everyone is taxes the same amount regardless of income
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proportional
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What are lunches, medical bills, personal care items, and clothing all examples of?
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variable expenses
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Economy where consumers determine what is produced: ______ economy
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Market
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Improvements in technology cause an ____ in production
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increase
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The amount of a good or service that businesses have available to sell
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supply
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If many companies start making a product that is high in demand prices will ____
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Decrease
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In economies, consumers, businesses, and governments make choices because of "resource _____"
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scarcity
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What are things required for survival?
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needs
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Organize production and consumption around the family, using techniques and technologies that have been around for generations: _____ economy
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traditional
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What are a house payment and insurance examples of?
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Fixed expenses
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With a strong dollar, US products become more expensive and countries reduce the amount of _____ because of the higher prices
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imports
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A _____ will result if the US is importing more than it is exporting
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trade deficit
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The measure of the value of goods and services produced by a country in one year
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GDP
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This is the amount you take home after deductions
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net pay
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All economies are ____; in other words all economies go up and down
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cyclical
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______ have an advantage over sole proprietorships because it allows for people to combine talents
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partnerships
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______ enforces Antitrust laws and monitors advertisings
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The Federal Trade Commission
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The form the employers use to calculate the amount of federal income tac to be withheld from your paycheck
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W-4
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Two or more quarters of substantial economic decline, measured by using the GDP
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recession
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A tax system in which you are taxed more the MORE money you earn
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progressive
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If consumers are not confident that the economy is doing well, they buy LESS, which makes the economy ____
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shrink
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A _____ is when one company combines with or purchases another to form a larger single firm
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merger
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Business activity and resources are not regulated by the government: ____ economy
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market
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If consumers feel confident that the economy is doing well, the buy MORE, which makes the economy ____
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grow
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The risk of failure is lower than if one opened a brand new business
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franchise
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Monetary policy is established by the ____
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federal reserve
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When foreigners compete with US consumers to purchase US goods is an advantage of a ____
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trade surplus
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This amendment extended the law to the state governments
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Fourteenth Amendment
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The total amount of money spend on business investment
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Investment spending
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Index that measures how prices change over tiem for urban consumers
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Consumer Price Index (CPI)
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An example of a natural monopoly
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public utility
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A ____ is a legally binding agreement between two or more parties
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contract
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_____ is responsible for enforcing labor laws
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The Department of Labor
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Governments attempt to "regulate" natural monopolies to make the firms behave more like a _____
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perfect competitor
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_____ regulates the communications industry
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The Federal Communications Commission
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Economy that is centrally controlled by the government which makes all the economic decisions: _____ economy
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Command
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How is personal net worth calculated?
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Subtracting total liabilities from total assets
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_____ price is a type of prices for goods and services normally result from a lack of competition
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higher
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____ is responsible for regulating the market for stocks
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The Securities and Exchange Commission
