Semester 2 Test Flashcards
(148 cards)
0
Q
A formal contract to repay borrowed money with interest at fixed intervals
A
Bond
1
Q
Economic system that relies on habit custom or ritual to decide questions of production and consumption of goods and services
A
Traditional economy
2
Q
An expectation that encourages people to behave in a certain way
A
Incentive
3
Q
Law in a city or town that designates separate areas for residency and for business
A
Zoning law
4
Q
Period of change in which an economy moves away from a centrally planned economy towers a market bases system
A
Transition
5
Q
Large farm leases from the state to groups of peasant farmers
A
Collective
6
Q
Nonprofit organization that promotes the interest of a particular industry
A
Trade association
7
Q
A political system characterized by a centrally planned economy with all economic and political power resting in the hands of the central government
A
Communism
8
Q
Requiring strict obedience to an authority such as a dictator
A
Authoritarian
9
Q
The portion of corporate profits paid out to stockholders
A
Dividend
10
Q
The method used by a society to produce and distribute goods and services
A
Economic system
11
Q
Partnership in which only one partner is required to be a general partner
A
Limited partnership
12
Q
The income people receive for supplying factors of production: land labor or capital
A
Factor payment
13
Q
Level of economic prosperity
A
Standard of living
14
Q
A business organization owned and operated by a group of individuals for their mutual benefit
A
Cooperative
15
Q
An economic system characterizes by private or corporate ownership of capital goods; investments that are determined by private decision rather than by state control; and determined in a free market
A
Free enterprise
16
Q
A business owned and managed by a single individual
A
Sole proprietorship
17
Q
Ones own personal gain
A
Self interest
18
Q
An establishment formed to carry on commercial enterprise
A
Business organization
19
Q
Authorization to stet a business issued by the local government
A
Business license
20
Q
Money and other valuables belonging to an individual or business
A
Assets
21
Q
Partnership in which partners share equally in both responsibility and liability
A
General partnership
22
Q
The market in which households purchase the goods and services that firms produce
A
Product market
23
Q
To sell to individuals state run firms, which are then allowed to compete with one another in the marketplace
A
Privatize
24
The combination of two or more firms competing in the same market with the same good or service
Horizontal merger
25
A certificate of ownership in a corporation
Stock
26
The doctrine that states that government generally should not intervene in the marketplace
Laisssez faire
27
Institution that function much like a business but does. It operate for the purpose if generating profits
Nonprofit organization
28
Government programs that protect people experiencing unfavorable economic conditions
Safety net
29
A legal entity owned by individual stockholders
Corporation
30
A range with no clear divisions
Continuum
31
The legally bound obligation to pay debts
Liability
32
What is an example of a barter system?
Instead of paying rent, you clean the house for the owner
33
What is an example of money as a unit of account
Checking the price of a camera at several stores before buying it as the lowest price
34
What is the main disadvantage of using shells as money instead of coins
Uniformity
35
What is an example of representative money
An IOU note
36
What is the purpose of the federal deposit insurance corporation
To make sure that banks do not fail
37
What did the federalist believe about banking
They believed that a centralized banking system was necessary
38
What occurred during the free banking era
Currency varies widely from state to state
39
What were greenbacks
Commodity money used by the union during the civil war
40
What is a mortgage used to purchase
Real estate
41
What happens during a bank run
More customers withdraw money than the bank has on hand
42
Why is using coins as money easier than using gold bars
Coins are more portable
43
What condition is necessary for a fiat money system to work
The government must control the money supply
44
What happens when you make a purchase using a credit card
The credit card issuer pays the store
45
You need a new computer and you will need a loan in order to buy one. Which lender is most likely to charge you the highest interest rate on your loan
Finance company
46
Near money includes
Deposits in savings accounts and money market mutual funds
47
When you pay for a new cd with a debit card you authorize the transfer of money from your account to the music stores account . In other words, a payment by debit card is the electronic form of a payment by
Check
48
Penny is an artist and john is a carpenter penny agrees to paint a portrait of johns family in exchange for a handmade table created by john how did penny and John pay for the goods in their transaction
Through bartering
49
What does money serve as
Medium of exchange
Unit of account
Store of value
50
In the 1800s people in mining towns in the west often paid for goods with gold nuggets or gold dust what was the function of gold
Used as currency
51
In the 1990 the Russian people lost confidence in the value if the ruble and many were no longer willing to sell goods and services in exchange for Russian currency which characteristic of money did the lack
Acceptability
52
American leaders in the early US wanted to establish a stable banking system in order to
Promote international trade and economic growth
53
What is one reason why many people distrusted the banking system during the free banking era of the first half of the 1800s
Many banks did no have enough gold or silver to back the pepper money they issued
54
How did the US government make the American public have confidence in the nations currency in the 1870s
The gov adopted the gold standard
55
Erin borrowed $18,000 to buy a car. Her loan will be paid off in 5 years. By the time that she pays off the lain, will she have made $20,327 in payments. Why did she have to pay $2,327 more than the price of the car
She had to pay interest or $2,327 for the privilege of borrow king the principal of $18,000
56
The resources used to make all goods and services are the
Factors of production
57
What is a guns or butter decision
A country must decide whether to use it's steel to build new fighter jets or new sports cars
58
The government of a country must make a decision between increasing military spending and subsidizing wheat farmers this kind of decision is a
Guns or butter issue
59
An example of a shortage is limited amounts of
Food available because the trucks carrying it are on strike
60
A nations automakers install new robotic machinery to build cars. Now cars take only a day to make and the factories can produce many more cars than before. This is an example of growth caused by
Technology
61
What does a production possibilities frontier show
The maximum amount that an economy can produce
62
One example of an entrepreneur is
An artist who runs a business painting murals in office buildings an restaurants
63
What is a factory building an example of
Physical capital
64
The purpose of a production possibilities graph is to
Show alternative ways to use an economy's resources
65
Why are all goods and services scarce
All resources are scarce
66
The lack of what represents a scarcity
Enough workers to finish two jobs because there's limited supply of workers
67
What can a decision making grid do
Help you determine some of the opportunity costs for your decision
68
How would you describe an economy that uses it's resources to make the greatest possible number of goods and services
Efficient
69
The opportunity cost of a decision can be examined by using a
Production possibilities graph
70
An efficient economy is one that
Uses it's resources to make the most of goods and services
71
The community of desert like traditionally produces a large number if tired and a small amount if kiwi fruit. Kiwis are becoming increasingly popular, and desertville has decided to expand kiwi cultivation and decrease tire manufacturing. According to the law of increasing costs,
The cost of producing kiwis will increases
72
Human capital includes
A taxi drivers knowledge of the city streets
73
Any resources that are made by humans and used to create other goods and services are called
Capital
74
What is the opportunity cost of a decision
The most desirable alternative given up for the decision
75
Which of the following is the kind of decision that can be made at the margin
Whether or not to hire new workers
76
Which of the following makes someone an entrepreneur
Running a service the hires people to install sprinkler systems in lawns
77
A country's production possibilities increase because the available workers become more skilled at using a computer. This is an example of growth caused by
Technology
78
The government of a country must make a decision between spending money on a hospital or spending the same amount on border security. What kind of decision is this
Guns or butter
79
A company that makes baseball caps is underutilizing it's resources. What does this mean
The company is producing fewer caps than it could be
80
The law of increasing cost means that when an economy increases the production of one item
The production cost will increase also
81
What is the function of an economic system
To produce and distribute goods and services
82
What is the struggle among various producers for the consumers business called
Competition
83
What does the process of specialization do for an economy
It makes it more efficient
84
Collective in the Soviet Union were inefficient producers of agricultural products. Why?
Farm workers had guaranteed incomes, so they had few incentives to produce more or better crops
85
Which of the following was a free market philosopher
Adam smith
86
How could the Chinese economy be characterized
Mixed but on the side or centrally planned
87
What is one of the most important advantages of a free market
It encourages growth
88
What might be a hardship for citizens of a centrally planned economy making a transition to a market based system
Workers would lose job security and guaranteed incomes
89
In what list of mixed economies does the market system dominate
United States, United Kingdom, Singapore, Hong Kong
90
What is a condition that most people would not expect the safety net of the government to provide for
Markets allow people to buy what they need to consume and sell the specialized goods and services they produce
91
Why does even a free market economy need some government intervention
To provide for thugs that the marketplace does not address
92
In what kind if an economy does the government make all the decisions
Centrally planned
93
What is a characteristic of a traditional economy
Children ten to have the same jobs as their parents
94
What is the product market
The market in which households purchase the goods and services that firms produce
95
You are an entrepreneur wit an innovative idea for a new business. In which kind of economy would you have the most opportunity to try to achieve success
Market economy
96
Suppose there is a family in which all the boys are expected to become farmers when they we adults, just as their fathers and grandfathers did. In which kind of economy do they participate?
Traditional economy
97
What does a government provide as part of a safety net for the people
Unemployment compensation
98
The economy of china is in transition. What does this mean?
The economy is moving from central planning. Toward a market based system
99
Which of the goals is difficult to achieve in a pure free market system
Economic equity
100
What incentive motivates a manufacturer to sell a product
Making profits on sales
101
A person believes that real equality can only exist when political equality is coupled with canonic equality this person believes that democratic means should be used to distribute wealth evenly throughout society
Socialist
102
What incentive do manufacturers have to sell their products
Making profits in sales
103
What is the purpose of competition
To act as a regulating force in the market place
104
What is an important advantage of a free market
It offers a wide variety of goods and services
105
How would the economy if Canada be likely to be characterized
Mixed, but on the side of free market
106
When a consumer is able and willing to buy a good or service, he or she creates what
Demand
107
Hat determines the price and the quantity produced of most goods
The interaction of supply and demand
108
What are inferior goods
Goods for which the demand falls when income rises
109
How is future price related to current demand
If the price is expected to rise, current dan will rise
110
What determines how a change in prices will affect total revenue for a company
Elasticity of demand
111
What kind of system is the United States economy based on
Market
112
Ceteris paribus or all things held constant is an assumption that has what effects on a demand schedule
It takes only prices into account
113
What shows the quantities of products demanded at each price by all consumers in a market
A market demand scheduled
114
What kind of table lists the quantity of a good that a person will buy at different prices
Demand schedule
115
What is a basic principle of a law of demand
When a goods price is lower people will buy more of it
116
How is the current demand for a good related to its future price
If the price is expected to drop current demand will fall
117
What is a good that might not be bought when prices rise
Luxury
118
What kind of changes would be expected in the demand of a country that has a growing population
A rise in the demand shelter
119
What is a company's total revenue
The amount a company receives for selling it's goods
120
When prices rise what happens to income
It buys less
121
What goods would be likely to be bought in the same quantity even if it doubled in price
Pencils
122
Demand for movie rentals is highly elastic a video store that raises the price of a rental will
Possibly gain or lose revenue
123
The family owned Italian restaurant in your neighborhood is probably an example of a
General partnership
124
Dr. Ruiz shares equal responsibility and liability with her colleagues in their medical practice her practice is an
General partnership
125
What represents the percent of all us businesses that are corporations and the percent of all goods that those corporations sell
20 % of businesses 90% of goods sold
126
What is a disadvantage of a sole proprietorship
Lack of permanence
127
Every day on your way to basketball practice you wave to me Martin who owns the neighborhood flower stands mr martins store is probably a
Sole proprietorship
128
You decide to go to a consumer cooperative to buy supplies for your class party prices are cheaper there mainly because consumer cooperatives
Make large purchases
129
Ellen started a catering business but soon decided that catering was too stressful for her she could close her business relatively easily and return to school because the business was a
Sole proprietorship
130
You are looking for a job with many fringe benefits you therefore probably want to work for a
Corporation
131
What is the major difference between a corporation and other kinda of businesses
A corporation has a separate entity apart from that of the owners and workers
132
What percent of businesses are sole proprietorship
75%
133
What are the money and other valuables that belongs to a corporation or partnership called
Assets
134
You are a part owner of new brands corporation because you
Own the company's stock
135
In a publicly held corporation
A large number of stockholders can buy and sell stock
136
You won a successful bicycle repair business you are considering incorporating in order to
Raise money more easily
137
Your uncle owns a convenience store that has branches nationwide his store is and example of a
Business franchise
138
Your running shoes were designed in the us but assembled in Asia by a company called runner pro runner pro is a
Multinational corporation
139
Why is it easier for a partnership to borrow money and to hold good employees than it is for a sole proprietorship to do so
A partnership has more personal stability and access to more money
140
If a general partnership fails who is responsible for the debts
All of partners
141
A joining of two or more businesses that are involved in different stages of producing the same goods or service is called what
Vertical merger
142
What is an advantage of a sole proprietorship
It is the least regulated form of business organization
143
The government usually allows conglomerates because they
Do not result in decreased competition
144
What are organizations that are in te business of benefiting society and operate like a business called
Nonprofit organization
145
What are royalties
A percentage of a franchises earning paid to the parent company
146
What is a fringe benefit
A payment other than wages or salaries
147
Good wireless and better wireless merge to form best wireless the federal government watches this merger carefully for evidence of a
Monopoly
