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EOC Review
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#economics
Flashcards
31 cards
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Questions
31
Answers
1
If the U.S. dollar was weaker compared to our trading partner, how could that help trading?
it would create a stable trading environment
U.S. goods would be expensive, so more countries would buy
U.S. goods would be cheaper, so more countries would buy
2
Define the European Union
free trade agreement with U.S., Mexico, and Canada.
The Euro currency and members are all from Europe
3
The reasons for economic prosperity here in the U.S. after WWII?
the U.S. could produce more goods than any other country
We cut taxes and deregulated businesses
because the technology boom
U.S. industries were not destroyed
4
define regressive taxes
rich taxed less
everyone pays equal taxes
the more you make the more your taxed
sales tax
5
If a Sole Proprietorship goes out of business it can lead to?
The Bank taking your personal property
stocks go down
share the losses with your partner
personal property cannot be taken away
6
define a market economy
based on customs and beliefs
free market mixed with gov't influences
equal distribution of wealth
not guaranteed employment, cheaper prices, more choices
7
your credit rating can lower if
pay more than the principle amount
pay your bills on time
have too much debt, if you spend to much, borrow too much
8
define Opportunity Cost
Income that remains available for spending after taxes
The best next alternative
a situation in which there is too little of good or service
9
match the factors of production- land
wants profit
employees
machinery
water
10
What type of business sells stocks for part ownership of business?
partnership
Corporation
franchise
sole proprietorship
11
low interest rates =
promotes less spending
promotes more spending
12
match the factors of production- labor
Water
Mark Cuban
employees
machinery
13
If a Partnership goes out of business
bank can take your personal property
stocks can go down
share the losses & profits with partner/unlimited liability
14
Define NAFTA
free trade agreement with U.S., Mexico, and Canada.
European agreement for free trade and use same currency
15
How does the federal reserve bank stimulate the economy?
higher interest rates
sales tax
lower the discount rate/lower interest rates
16
Why did U.S. defense spending greatly increase after WWII?
To fight terrorism
To prepare for a war with China
To stop the spread of communism
17
Define GDP (Gross Domestic Product)
How much taxes and spending our country does.
to ensure tariffs rates are equal in imports and exports
How much money the entire U.S. makes
ability to spend your money how you want
18
define proportional taxes
sales tax
the more you make the more your taxed
everyone pays equal taxes
19
match the factors of production- Capital
Water
Machinery
wants profit
workers
20
What is the basic concept of economic scarcity?
what an individual gives up when making a choice
a limited supply to meet unlimited demand
a large supply of an item but limited demand
21
define consumer confidence in a market economy
have more debt
will spend more money
have less debt
will spend less money
22
Define Command/Communism Economy
more choices and cheaper prices
central authority/ Gov't leaders in charge of the economy
Cuba
based on traditions and customs
23
If a Corporation goes out of business
share losses with your partner
personal property cannot be taken away
The bank can take your personal property
stocks would go down
24
How does the government enact changes in fiscal policies?
to tax and government spending
lower reserve requirements
free trade with other countries
25
What result would occur by lowering interest rates?
less consumer spending
more consumer spending
more people saving money
26
Define Socialism
based on customs and beliefs
an equal distribution of wealth
everyone has a variety of choices with few gov't regualtions
27
define progressive taxes
the more you make the more your taxed
everyone pays equal taxes
sales tax
28
define Entrepreneur
manager of a business
what an individual gives up when making a choice
Bill Gates
handles everything in the business/ takes risk for reward
29
How does the government lower deficits?
higher interest rates
increase taxes and the gov't decreases their spending
increase military spending
lower taxes to stimulate the economy
30
Match the factors of production- Entrepreneur
machines
Water
employees
wants profits
31
If the gov't sets a price ceiling in a market, this would likely cause which of the following?
shortage
equilibrium
efficiency
surplus
