Economics Final Exam Review

Anything that serves as a medium of exchange, a unit of account, and a store of value.

A maximum price that can be legally charged for a good.

Taking tax payments out of an employee’s pay before he or she receives it.

The effort that people devote to a task for which they are paid.

The combination of two or more companies into a single firm.

A business owned and managed by a single individual.

When a good’s price is lower, consumers will buy more of it. When the price is higher, consumers will buy less of it.

Coins and paper bills used as money.

Limited quantities of resources to meet unlimited wants.

Spending on certain programs that is mandated, or required, by existing law.

Plan for the federal government’s revenues and spending for the coming year.

A tax on a person’s earnings.

A fee charged for goods brought into one country from another.

The study of the behavior and decision making of entire economies.

The study of how people seek to satisfy their needs and wants by making choices.

Financial gain made in a transaction.

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

Someone who would not choose to pay for certain goods, but would get the benefits of it anyway if it were provided

A certificate of ownership in a corporation.

Goods and services produced in one country and sold to other countries.

Describes demand that is not very sensitive to a change in price.

A specific type of loan that is used to buy real estate.

A required payment to a local, state, or national government.

The most desirable alternative given up as the result of a decision.

A situation in which the government spends more than it takes in.

The removal of some government controls over a market.

Taxes that fund Social Security and Medicare.

A business organization owned by two or more persons who agree on a specific division of responsibilities and profits.

An income level below that which is needed to support families and households.

Natural resources that are used to make goods and services.

An economic system that is based on private ownership of the factors of production.

A product that is the same no matter who produces it.

A formal contract to repay borrowed money with interest at fixed intervals.

A market structure in which a few large firms dominate a market.

The higher the price, the larger the quantity produced.

Theory that the completion of college indicates to employers that a job applicant is intelligent and hardworking.

Any human made resource that people use to create other goods and services.

The system that allows the transfer of money between savers and borrowers.

The idea that every one dollar of government spending created more than one dollar in economic activity.

The concentration of the productive efforts of individuals and firms on a limited number of activities.

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

A market dominated by a single seller.

A market structure in which a large number of firms all produce the same product, also called pure competition.

The government agency that insures customer deposits if a bank fails.

Spreading out investments to reduce risk.

A legal entity owned by individual stockholders.

Ambitious leader who combines land, labor, and capital to create and market new goods and services.

The percentage of the nation’s labor force that is unemployed.

Is the method used by a society to produce and distribute goods and services.

The direct exchange of one set of goods or services for another.

A market for buying and selling stock.

To sell the stock for more than he or she paid for it.

Describes demand that is very sensitive to a change in price.

The study of the economy’s behavior and decision making of small units, such as individuals and businesses.

Government payment or discounted loan that supports a business or market.

Laws that encourage competition in the marketplace.

The use of government spending and revenue collection to influence the economy.

A shared good or service for which it would be inefficient or impractical to make consumers pay individually

Economic system based on private ownership of productive resources.

Theory that education increases productivity and results in higher wages.

A centrally planned economy with all economic and political power resting in the hands of the central government.

A general term that refers to government aid for the poor.

The legally bound obligation to pay debts.

Goods and services produced in one country and purchased by another.

The total value of all final goods and services produced in an economy.

A card entitling its holder to buy goods and services based on the holder’s promise to pay for these goods and services.

A general increase in prices.

The point of balance between price and quantity.

The percentage of people who live in households with income below the official poverty line.

Means using resources in such a way as to maximize the production or output of goods and services.