Economic final exam review

federal program retirement benefit that covers most working people

stage of output increases at a decreasing rate as more units of variable input (workers) are added (2 opinions)

a business’ total income after expenses

monetary value of a product

products that encourage the use of another product

Profit Motive

Fundamental problem facing all societies resulting from limited resources and people’s virtually unlimited needs/wants

graph showing the quantity demanded at each and every possible price that might prevail in the market at a given time

different amounts offered for sale at each possible price in the market

Capital Good

products that can be used in place of one another

Economic system characterized by a central authority which makes most of the major economic decisions

Standard of Living

someone who organizes and manages land, capital, and labor to make a profit

Why would privatization raise a nation’s standard of living?

Why would a mixed economy develop?

• almost no requirements to start up • owner makes all the decisions • owner keeps all the profits

the lowest legal wage that can be paid to most workers

using social networking to appeal to potential investors

Labor Union (had to break up the answer to long 2 options)

quantity of output supplied that is exactly equal to the quantity demanded

a rise in the general prices

price where quantity supplied equals quantity demanded

when a country’s total output increases over time

Privatization

change in total income when one additional unit of output is added

business conducted over the internet

combination of desire, ability, and willingness to buy a product

quantity supplied is less than quantity demanded at a given price

quantity supplied is greater than quantity demanded at a given price

Nonprofit service cooperation that accepts deposits, makes loans, and provides other financial services

when two companies that produce the same kind of product merge together

Economic system in which supply, demand, and the price system help people allocate resources (2 options)

Changes in demand and changes in price have an?

Low prices signal buyers to?

prevent prices from reaching equilibrium

Gross Domestic Product (GDP)