Economics Final Exam Review

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

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

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

Theory that education increases productivity and results in higher wages.

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

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

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

Natural resources that are used to make goods and services.

The legally bound obligation to pay debts.

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

The removal of some government controls over a market.

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

Taxes that fund Social Security and Medicare.

A market for buying and selling stock.

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

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

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

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

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

A market dominated by a single seller.

The higher the price, the larger the quantity produced.

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

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

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

The point of balance between price and quantity.

A legal entity owned by individual stockholders.

A general increase in prices.

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

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

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

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

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

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

Economic system based on private ownership of productive resources.

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

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

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

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

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

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

Coins and paper bills used as money.

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

A tax on a person’s earnings.

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

Laws that encourage competition in the marketplace.

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

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

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

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

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

A certificate of ownership in a corporation.

Spreading out investments to reduce risk.

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

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

Financial gain made in a transaction.

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

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

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

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

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

Limited quantities of resources to meet unlimited wants.

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

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

A business owned and managed by a single individual.

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

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

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

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

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

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