Final7 review

the biggest obstacle to maintaining a profitable cartel is the temptation to cheat on the agreement

annual interest expressed as a percentage of the amount borrowed or saved is...

even if a corporation goes bankrupt, it must pay bond holders the promised accounts

the development of new productive tech is likely to lower costs of production and...

one fo the economic questions that all econ systems must answer is...

a firm's long-run avg cost indicates the lowest avg cost of producing an output when the firm's size is allowed to vary

the value of output produced by a resource is known as productive cost

as more of a variable resource is added to other resources, marginal product declines and could become negative--this is

when exchanges take place in markets...

macroeconomics focuses on the performance of the economy as a whole

an increase in the economy's price level is known as inflation

the demand for a normal good increases as money income increases

shares of preferred stock provide owners with a fixed return and a vote in important corporate decisions

the amount an insured person must pay before the insurance company pays anything is known as...

your willingness to pay more for time-saving goods and services depends on

Which of the following firms is most likely to be organized as a partnership?

taxes on cigarettes, alcohol, and gambling is...

at a given price, the amount by which quantity demanded exceeds quantity supplied is known as

inflation is an increase in the economy's price level resulting from

A partnership with at least one general partner in the business and another that provides money is a limited partnership

businesses often lose monopoly power over time because profits attract competition or consumers find substitutes

competition among sellers encourages them to supply more of what consumers value most

a contract promising to repay borrowed money on a designated date and to pay interest along the way is...

Bank notes that exchange for a specific commodity, like gold or silver, is...

the value of the best alternative passed up for the chosen item or activity is known as

a business unit or enterprise formed by a profit-seeking entrepreneur is...

before 1863, commercial banks chartered by the states they were in were called state banks

a public good is available to all consumers in an identical amount

When a business finds a way to make higher-quality products, we can be sure that

if the cost of plastic falls by 20 percent, the demand for workers who produce plastic toys will

A market structure with many fully informed buyers and sellers of an identical product and ease of entry

an economic system where all resources are govt owned and all production is led by central plans is a traditional econ

the ability to borrow now, based on the promise of repayment is credit.

the doctrine that the govt should not mess with a market economy is laissez-faire

an asset owned by the borrower that can be sold to pay off the loan if you can't pay is an IOU

the economy is said to be at full employment if there is no

fiat money is money because

greater specialization increases the transaction costs of barter

A self-employed person is considered a paid employee.

negative externality is the by-products of production or consumption that impose benefits on a third party