EOC- CFE Review Game updated 12-6-2017

 This a business or organization owned by and operated for the benefit of the user-owners

Real GDP is adjusted for inflation. Nominal GDP is not.

Monopolistic competition has many firms, few barriers, some price control, different products. 

Who was Adam Smith?

Sole proprietorship; one owner, unlimited liability, total profit, full control of business.

A change in demand occurs because of a change in _________.

The flow of money in the resource market goes from the ______ to the ______?

Structural, frictional, cyclical, are types of unemployment.

A change in quantity demanded occurs because of a change in_________.

Marginal cost is the cost of producing one additional product.

Diversification; investing money in different places to minimize risk and maximize gain. 

Socialism favors democratic means to  provide political and economic equality.

Rent control is an example of a price ceiling.

A change in quantity supplied results from

A good or service that is not a necessity is a

Economic efficiency is

Three types of economic systems

The large number represents the

If demand is constant and supply decreases, price wil

The profit a person receives from selling stock is called a _________?

A mutual fund is

As more workers are added, fewer products are produced this is increased marginal returns.

A company where owners are not liable personally (seizure of assets) for the company's debts.

Expansionary monetary policy consists of the FED

How does a traditional economic system answers the three basic economic questions.? 

Contractionary fiscal policy consists of

The intersection of the demand and supply curve represents

(Q2-Q1)/[(Q2 + Q1)/2 / (P2+P1)/[(P1 + P2)/2]= PED using Mid-point or standard formula? 

What is opportunity cost?

The human resources, natural resources, and capital resources are  

Goals and values of the United States economy are

A good or service that is life sustaining is a

Money is anything that represents value and a medium of exchange.

free markets to regulate themselves by competition, supply, demand, and self-interest.

The dollar value of all final goods and service produced in a given year is GDP. C+I_g+G+ X_n

A bond is

A product that is a necessity or a luxury that satisfies a need or a want is a  

Public water, electrical, cable tv, trash pick up are examples of natural monopoly.

The flow of money from the bank to the business represents  

A group of buyers and sellers looking to gain maximum utility from producing and consuming?

Corporation is stock holder owned, limited liability, legal entity (individual identity). 

By moving factors of production from one good to another, the cost of the second item increases

a financial market of a group of securities in which prices are rising or are expected to rise.

Which price would be the ideal sale price?

Stock quote: High / Low represents the

If demand decreases and supply is constant, price will

Typically a person will spend between ________% of their net monthly income on housing.

Coffee and tea are _________ goods?

The two markets in the circular flow model are the?

A shortage occurs when the quantity supplied is less than the quantity demanded at a price. 

Income, taste, expectations, population,and related goods prices cause a change in demand.

Horizontal merger is joining two or more companies competing in the same market. 

An internal tax imposed on the producer,seller, & consumer of products or services. (alcohol)

Type of business expense where the owners are liable for the debts owed by the business

Competition is a

As price increases, quantity supplied increases.

Fixed cost of production are rent, taxes, salaries.

Perfect competition: many buyers and sellers, identical products, informed buyers and sellers.

The determinant of demand are

The factor of production that receives the payment of rent/ lease is

Microeconomics study economy as a whole,macroeconomics study economic behavior of household.

A ___is a corporation made up of different, unrelated businesses. Controlled by one business.

L.of Demand,increase price result decrease purchases, decrease price causes increase purchases.

A __________tax requires percentage paid in tax decreases as earned income increases.

If demand is constant and supply increases, price will

Substitution effect,buy less of goods at higher price and more of other low cost goods.

Minimum wage is an example of a price floor.

The most important characteristics of an open market are?

How does a mixed economic system answers the three basic economic questions. 

The factor of production that receives the payment of wages and salary is 

Oligopoly is a market few firms, high startup cost (barriers), significant control over price.

Disadvantages of a free market economy

Economic freedom is

The study of how people satisfy their needs and wants is ?

Using the Consumer Price index, a market basket of goods can be compared to predict inflation

A shortage occurs when the quantity supplied is less than the quantity demanded at a price. 

Coffee and doughnuts are ______________ goods?

Expansion, peak, contraction, trough, and recovery (expansion) comprise the business cycle.

52-Week High and Low –

Rule of 72 states that if your divide the interest rate by 72 it will show for an investment?

Variable cost of production are resource prices, electricity, and labor costs.

What is the least risky investment?

As more workers are added, greater production occurs is called increasing marginal returns. 

Using a decision making grid helps when making a choice by enabling cost and benefit analysis?

The person who uses land, labor, captial, and their own personal skill in business is 

A _____________tax requires every income earner to pay the same percentage tax on their income.

How does a command economic system answers the three basic economic questions?

The advantages of a free market are

A ___________ tax requires a percentage of income tax increase with increases in income levels.

If demand increases and supply is constant, price will

The three basic economic questions are? 

Investing; directing financial assets into profitable stock, bonds, mutual funds, and futures.

Demand is the desire and ability to purchase something.

The flow of money in the product market goes from the _______ to _______.

The glass ceiling,an unofficial, invisible barrier limiting people from advancing in business. 

A recession is more than two months consecutive contraction of GDP.

A savings account that limits withdrawals to 6 a year and pays a higher interest rate is

GDP (Gross domestic product) total $ value of all goods and services sold in a year.

Monopoly is a single seller market, high barriers to entry, seller has complete price control.

As more workers are added, less production occurs is called increasing marginal returns.

Multinational is a corporation operating in more than one country.

Economic growth is 

A price floor = highest price a good can sell for, below the equilibrium / market price.

Scarcity is defined as?

Demand schedule is a table of prices and quantities of goods.

An activity performed by someone for someone for a fee, commission, or payment is a 

The picture is the Mid-Point or standard formula for Price Elasticity of Demand?

a market condition in which securities / stock prices fall and confidence declines.

What does this picture reference?

The determinants of supply are changes in resource prices, technology, taxes and subsidies,...?

A depression (trough) lasts _______. High unemployment,drop credit, low output, bankruptcy

Which would be the ideal buy price?

Incentives are

The factor of production that receives the payment of interest is 

An increase in supply is depicted with a shift of the supply curve to

Supply changes occur from subsidies, technology,resource costs, taxes,regulation.

As more workers are added, quantity of products produced decreases, diminshed marginal returns.

A point on the production possibilities curve represents

____________ Fiscal Policy increases government spending and lowers taxes. 

The factor of production represented by natural resources. ( property, livestock, water, & oil)

All opportunities given up to pursue an activity are?

Vertical merger is joining two or more companies together with complimentary resources.

What is the invisible hand? 

Communism (government control) is combined with a centrally planned command economy.

Guns and butter refers to which trade-offs?