Exam Study Guide Vocab

Question 0

Basic requirement for survival

Answer 0

Need

Question 1

Social science dealing with how people satisfy

Answer 1

Economics

Question 2

Something we would like to have

Answer 2

Want

Question 3

Risk taker

Answer 3

Entrepreneurs

Question 4

Tangible economic product

Answer 4

Good

Question 5

Good that lasts for atleast three years

Answer 5

Durable good

Question 6

An item that wears out or lasts fewer than 3 years

Answer 6

Non durable

Question 7

Work or labor performed for someone else

Answer 7

Service

Question 8

Ability or capacity of a good or service to be useful and give satisfaction to someone

Answer 8

Utility

Question 9

Economic system in which private citizens own and use the factors of production in order to generate profits

Answer 9

Capitalism

Question 10

Federal program of disability and retirement benefits that covers most working people

Answer 10

Social security

Question 11

Rise in the general level of prices

Answer 11

Inflation

Question 12

Income that doesn’t increase even if the prices go up

Answer 12

Fixed income

Question 13

The struggle among sellers to attract consumers

Answer 13

Competition

Question 14

Situation in which a firm legally ceases to exist when an owner dies

Answer 14

Limited life

Question 15

Written government approval to establish a corporation

Answer 15

Charter

Question 16

Certificate of owner ship in a corporation

Answer 16

Stock

Question 17

Check paid to stockholders, usually quarterly, representing portion of corporate profits

Answer 17

Dividend

Question 18

Amount borrowed when getting a loan or issuing a bond

Answer 18

Principal

Question 19

Combination of two or more business enterprises to form a single firm

Answer 19

Merger

Question 20

Gradual wear on capital goods

Answer 20

Depreciation

Question 21

Process of negotiation between Union and management representatives over pay, benefits, and job related matters

Answer 21

Collective bargaining

Question 22

Rule stating that more will be demanded at lower prices and less at higher prices

Answer 22

Law of demand

Question 23

Products that increase the use of other products

Answer 23

Complements

Question 24

Principle that more will be offered for sale at higher prices than lower prices

Answer 24

Law of supply

Question 25

Total output or production by a firm

Answer 25

Total product

Question 26

Production level where total costs equals total revenue

Answer 26

Break even point

Question 27

Monetary value of a product as established by supply and demand

Answer 27

Price

Question 28

System allocating goods and services with out prices

Answer 28

Rationing system

Question 29

Partial refund of a products original price

Answer 29

Rebate

Question 30

Situation where quantity supplied is less than quantity demanded at a given price

Answer 30

Shortage

Question 31

Highest legal price that can be charged for a product

Answer 31

Price ceiling

Question 32

Price floor for agricultural products set by the government to stabilize farm income

Answer 32

Target price

Question 33

Agricultural loan that carries no penalty or further obligation if it's not repaid

Answer 33

Nonrecourse loan

Question 34

Cash payment making up the difference between the market price and target price

Answer 34

Deficiency payment

Question 35

Philosophy that government should not interfere with business activities

Answer 35

Laissez faire

Question 36

Agreement usually illegal among producers to fix prices, limit output, or divide markets

Answer 36

Collusion

Question 37

Illegal combination of corporations or companies organized to hinder competition

Answer 37

Trust

Question 38

Market structure with a single seller of a particular product

Answer 38

Monopoly

Question 39

Court order issued to prevent a company or union from taking action during a labor dispute

Answer 39

Injunction

Question 40

Length of time a person has been on a job

Answer 40

Seniority