Econ 101 Part 2

Pawning a guitar gets you $100. month later you pay $120 to get your guitar back The $20 is

The way that a country decides how to use its productive resources

High Inflation rates are hardest on:

All of the following affect supply and demand EXCEPT:

The quantity of goods and services that producers are willing and able to provide is called:

The SEC regulates

Demand is represented by wanting an expensive leather jacket without having the money to buy it

This year's inflation rate is 5%. This means:

Which statement is most accurate about demand?

All of the following are attributes of the stock market EXCEPT

A corporation issues bonds so it can:

Why would the FED DECREASE interest rates?

If a country didn't produce any capital goods,it couldn't produce many consumer goods by itself

Which best describes a Lottery Ticket?

The same product may have a different value to each individual.

In a BOOM economy, we can expect

What normally happens during a recession?

What does the US Treasury do?

SUPPLY is high for unskilled workers (Burger Flippers/Heart Surgeons)

A DISADVANTAGE of taking a loan for the maximum number of years allowed is

Decreased production and increased unemployment occur during recessions.

shopping for a bathing suit, you find winter jackets 1/2 off. You have two good jackets.Lesson?

Opportunity cost means a tradeoff/giving up a particular benefit for another desirable choice

When the economy is growing, people are buying and selling goods and services.

Insurance is described as “sharing the risk” because the insured person shares the risk with

When demand exceeds supply businesses may charge higher prices for their products.

When the FED raises interest rates, it is trying to:

Demand is low and supply is high for unskilled workers (think “Price”=wage) in most age groups

Which factor would most likely help someone obtain a favorable interest rate on a bank loan?

The highest interest rate loans generally

Why does a corporation issue bonds to the public?

If a product is in short supply, what generally occurs?

Steel that is used to produce tools and machinery is classified as

The willingness and ability of consumers to buy products and services is called:

When there is low demand for goods and services, businesses are growing.

Capital goods directly satisfy human wants.

When the production of consumer goods increases, the supply of

The United States has adequate resources to satisfy all the wants of all its people.