Economy Final Exam

A market in which money is lent for periods of one year or less

Consumers will buy more of a good when its price is lower and less when its price is higher

The use of assets to earn income or profit

A bond with high risk and potentionally high yield

A market structure in which a many companies sell products that are similar but not identical

The desire to own something and the ability to pay for it

When quantity supplied is more than quantity demanded

Not very sensitive to price changes

True or False: Knowledge & skills a worker gains through education/experience is human capital

Why it's stock split done?

Which is not a basic principle of free enterprise?

True or False: Day Trading is the practice of making high-risk investments with borrowed money

Very sensitive to price changes

Which is not one of the 3 components of bonds

A steady drop or stagnation in the stock market over a period of time

A market for buying and selling stock

Which is not a factor in demand curve shifts?

A business that specializes in trading stocks

A market structure in which a single seller dominate a market

The fact that limited amounts of goods and services are available to meet unlimited wants

The network of structures & mechanisms that allow the transfer of money between savers/borrower

Government owns and controls all resources, means of production & makes all economic decisions.

A good people will always buy, even when the price increases.

True or False: Variable Cost is the cost that does not change

The point at which the demand and supply is equal

A market for reselling financial assets

A market in which money is lent for periods longer than a year

A minimum price for a good or service

A market structure in which few large firms dominate a market

True or False: A need is some a person desire and is not necessary for survival

Which is not an example of the economic goals?

Any factor that makes it difficult for a new firm to enter a market.

The strategy of spreading out investment to reduce risk

The government makes all the decisions on the 3 economic questions.

A maximum price that can legally be charged for good or service

What are the two types of capital?

Producers offer more of a good as its price is increasing and less as its price is decreasing

Voting owners of the company who receive one vote per share of stock owned.

Mixed-based economic system in which the government is involved to some extent.

The division of each single share of a company's stock into more than one share

A formal organization of producers that agree to coordinate prices and production

A low-denomination bond issued by United State government

A bond issued by a corporation to help raise money for expansion

A steady rise in the stock market over a period of time

The ability to be used as, or directly converted into, cash

A market for selling financial assets that can be redeemed only by the original holder

Nonvoting owners of the company who receive dividends before owners of common stock

The expenses a new business must pay before it can begin to produce or sell.

A large number of firms all produce the same product and no single seller controls the market

True/False: Command Economy is another name for Centrally Planned Economy

Which is not a type of bond?

The act of giving up one benefit in order to gin another, greater benefit

The right of a government to take private property

True or False: Study of economic behavior & decision-making in small units is macroeconomics

True or False: Dividend is the portion of corporate profits paid out to stockholders

The amount of goods available

By paying dividends, this stock provides investors with income

The stock pays few or no dividends and reinvests its earnings in its business

A bond issued by a state or local government or municipally to finance a public project

When quantity demanded is more than quantity supplied