Gross Domestic Product

total yearly dollar value of goods produced in a country

not enough of a resource to satisfy people's needs and wants

Why is it nearly impossible to have a zero unemployment rate?

There will always be people who quit jobs to find new ones

What are the four factors of production?

natural resources, capital, labor, and entrepreneurs

study of how people, businesses, and nations use resources

What does standard of living measure?

How well a country's economy is doing by meeting needs

when a nation's exports is greater than its imports

a tax on the property of a person who has dies

direct exchange of one good for another without using money

goods that can take the place of one another

What happens when management and labor try collective bargaining?

Mgmt and Labor try to reach an agreement

Suppose that people buy less sugar. How might this affect the demand for sugarcane farmers?

It will reduce the demand for sugar

aid one country gives another in the form of supplies, etc

demand-pull inflation

inflation caused when spending is more than goods available

How might a rapidly growing population add to a developing countries problems?

It might be harder to provide the basic needs of a person

Frictional Unemployment

when one is between jobs or are looking for their 1st job

value of all currency and checking acct bals. in a country

Comparative Advantage

producing products at lower oppty costs than other countries

the % of people in a population who can read and write

If the price of a complementary good decreases, what happens to the price of its complement?

The complement price will go up

A certificate of deposit is

a type of savings account with a high fixed rate of interest

higher production, more jobs, and more consumer spending

human made things that produce goods and services

How does the amount of industry in developed countries compare to developing countries?

They have much more industry than developing countries have

policy that calls for non-interference by govt in business

the min income a family must have to meet its basic needs

economic law that says one will buy more as the price drops

Cyclical Unemployment

when one is out of work because of a downturn in the economy

unrestricted trade between countries

GDP adjusted up or down to account for inflation

inflation caused by the rising cost of resources

Money market accounts generally pay

higher interest than regular savings accounts

a bank whose functions include controlling the money supply

an import tax used to provide government revenue

alt. periods of expanding and contracting econ. activity

% of people who are looking for work but have not found jobs

the amount of goods/services produced in a given time period

One reason some government leaders want to halt the growth of the national debt is

Govt spending will replace private spending in the economy

economic law that says one will buy more as the price drops

people who make the ideas for producing goods and services

a time period when GDP is decreasing

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Economics Final

70 termsStudBud Administration12 plays

Units 1 - 8

Flashcards70 cardsFPractice quizPHost liveL

Questions 70

Answers

1
A business ends up with ________ if its costs are greater than its revenues.
sole proprietorship
board of directors
stockholders
losses
2
Gross Domestic Product
figures collected to get info about a particular subject
the highest point in the business cycle
total yearly dollar value of goods produced in a country
3
Scarcity
things provided by nature that produce goods and services
people who make the ideas for producing goods and services
human made things that produce goods and services
not enough of a resource to satisfy people's needs and wants
4
Why is it nearly impossible to have a zero unemployment rate?
The government wants there to always be some unemployment
There will always be people who quit jobs to find new ones
There will always be some people who do not look for jobs
5
What is the purpose of tariffs and quotas?
To restrict competition
To make sure that enough products are being made
To keep the price of products low
To raise money
6
When an entrepreneur starts a business by themselves, the business is called a ______.
sole proprietorship
losses
stockholders
board of directors
7
What are the four factors of production?
needs, wants, labor, and natural resources
air, water, fish, and oil
natural resources, capital, labor, and entrepreneurs
8
Providing income and medical benefits for those retired or unable to work.
Medicare
Medicaid
Social Security
9
What is economics?
an activity performed for others for money
study of how people, businesses, and nations use resources
things that can be seen, touched, and bought or sold
10
What does standard of living measure?
The number of years people live to in a country
How well a country's economy is doing by meeting needs
The rules by which people live in a country
11
Trade Surplus
unrestricted trade between countries
when a nation's exports is greater than its imports
trade between nations
a tax on imports
12
Estate Tax
policy that calls for non-interference by govt in business
a tax on the property of a person who has dies
a tax on inherited property or money
13
bartering is
direct exchange of one good for another without using money
lasting a long time without wearing out
a unit of value
coins and paper money
14
Substitute Goods
graph showing the amt of goods bought at different prices
economic law that says one will buy more as the price drops
goods that are used with each other
goods that can take the place of one another
15
portable is
easily carried or moved
lasting a long time without wearing out
coins or paper money
16
What happens when management and labor try collective bargaining?
Labor threatens to strike unless all their demands are met
Mgmt and Labor try to reach an agreement
Mgmt makes an offer, labor decides to take the offer or quit
17
Suppose that people buy less sugar. How might this affect the demand for sugarcane farmers?
It will increase the demand for sugar
It will have no affect on the demand for sugar
It will reduce the demand for sugar
18
46. What does inflation do to the value of a dollar?
It doesn't change it at all
It makes it worth more
It makes it worth less
19
Foreign Aid
aid that is given to help foreign people move to the U.S.
aid that foreigners give to the U.S.
aid one country gives another in the form of supplies, etc
aid that is given to people and they don't know what it is
20
demand-pull inflation
inflation caused when spending is more than goods available
inflation caused by the rising cost of resources
a raise in income to keep wages even with inflation
21
How might a rapidly growing population add to a developing countries problems?
It would allow there to be more teachers in their country
It would allow for a larger workforce
It might be harder to find everybody to collect taxes
It might be harder to provide the basic needs of a person
22
Frictional Unemployment
when people are jobless due to the season of the year
when people are jobless because of lack of skills/education
% of people who are looking for work but have not found jobs
when one is between jobs or are looking for their 1st job
23
What are the three levels of government that provide goods and services?
Supervisors, Management, Workers
Committees, Mayors, Aldermen
Federal, State, Local
24
money supply is
value of all currency and checking acct bals. in a country
units of value
coins and paper money
25
International Trade
a tax on imports
the ability to make a product cheaper than other countries
goods bought from other countries
trade between nations
26
Comparative Advantage
limiting trade with countries to protect domestic industries
a law that sets a fixed amount of imports
tax raising $ of imps. protecting indust. from foreign comp
producing products at lower oppty costs than other countries
27
Literacy rate
the % of people in a population who can read and write
The number of books a person can read in one year
The number of people who can speak properly in a country
The hourly wage a person makes teaching people how to read
28
If the price of a complementary good decreases, what happens to the price of its complement?
The complement price stays the same
The complement price goes down
The complement price will go up
29
A certificate of deposit is
a type of savings account with a high fixed rate of interest
slip showing how much you just deposited into your account
certificate showing the amount you have in savings
30
Increased GDP means
higher production, more jobs, and more consumer spending
GDP adjusted for inflation
less production, fewer jobs, and less consumer spending
31
Capital
people who come up with ideas for making goods and services
human made things that produce goods and services
not enough of a resource to satisfy people's needs and wants
things provided by nature that produce goods and services
32
How does the amount of industry in developed countries compare to developing countries?
They have about the same amount as developing countries have
They have much more industry than developing countries have
They have much less than developing countries have
They have 1.5 times the amt that developing countries have
33
Laissez Faire
a tax on income above a certain amt and corps pay on profits
policy that calls for non-interference by govt in business
a tax on inherited property or money
34
Which is something that might affect the standard of living?
Where a person lives
Things that people's neighbors have
Things that people want
35
Poverty Line
the min income a family must have to meet its basic needs
programs that provide assistance to people who cannot work
prgms to stop pov., Soc Sec, worker's comp. Paid by workers
non-profit orgs that take donations then give aid to people
36
Law of Demand
graph showing the amt of goods bought at different prices
economic law that says one will buy more as the price drops
goods that are used with each other
goods that can take the place of one another
37
Cyclical Unemployment
when people are jobless due to the season of the year
when one is between jobs or are looking for their 1st job
when one is out of work because of a downturn in the economy
% of people who are looking for work but have not found jobs
38
Free Trade
unrestricted trade between countries
an import tax used to provide goavernment revenue
trade between nations
when a nation's exports is greater than its imports
39
real GDP
total yearly dollar value of goods produced in a country
figures collected to get info about a particular subject
GDP adjusted up or down to account for inflation
40
cost-push inflation
inflation caused when spending is more than goods available
a statistic used to measure inflation
inflation caused by the rising cost of resources
41
Money market accounts generally pay
the same interest than regular savings accounts
higher interest than regular savings accounts
lower interest than regular savings accounts
42
central bank is
a kind of bank that is owned by members
a bank whose functions include controlling the money supply
a corporation that insures bank deposits up to $100,000
43
Revenue Tariff
an import tax used to provide government revenue
goods sold to other countries
when a nation's imports is greater than its exports
the ability to make a product cheaper than other countries
44
business cycle
a period of time when GDP decreases
alt. periods of expanding and contracting econ. activity
a long-lasting and severe recession
45
Unemployment Rate
when people are jobless because of lack of skills/education
when one is between jobs or are looking for their 1st job
when people are jobless due to the season of the year
% of people who are looking for work but have not found jobs
46
Productivity
things provided by nature that produce goods and services
human made things that produce goods and services
the amount of goods/services produced in a given time period
not enough of a resource to satisfy people's needs and wants
47
One reason some government leaders want to halt the growth of the national debt is
Private spending will replace govt spending in the economy
There will not be enough interest on debt
Govt spending will replace private spending in the economy
48
Demand Curve
goods that are used with each other 16 characters remaining
economic law that says one will buy more as the price drops
graph showing the amt of goods bought at different prices
goods that can take the place of one another
49
Entrepreneurs
human made things that are used to produce goods/services
the amount of goods/services produced in a given time period
things provided by nature that produce goods/services
people who make the ideas for producing goods and services
50
contraction
an increase in average price of all goods and services
a time period when GDP is decreasing
the lowest point in the business cycle
51
One important advantage of money is
it allows people to specialize
it is colorful
all money is equal in value
52
Better Business Bureau
private org that protects consumers from unfair practices
representatives of businesses who promote local business
an illegal form of advertising
53
If the price of replacement products go up, what happens to the price of the original product?
It increases
It stays the same
It decreases
54
Natural Resources
not enough of a resource to satisfy people's needs and wants
human made things that are used to produce goods/services
the amount of goods/services produced in a given time period
things provided by nature that produce goods and services
55
Structural Unemployment
when one is between jobs or are looking for their 1st job
when people are jobless because of lack of skills/education
% of people who are looking for work but have not found jobs
when people are jobless due to the season of the year
56
The people that stockholders elect to make the big decisions for the corporation are _____.
losses
sole proprietorship
board of directors
stockholders
57
Law of Supply
amt of goods one is willing to produce at different prices
people responsible for directing and managing a business
economic law which says that producers are willing to supply
58
When GDP decreases for two quarters or six months in a row, the country is in a
recession
trough
depression
59
Corporations are owned by_____________ who buy stock in the company
sole proprietorship
board of directors
stockholders
losses
60
The three steps in making spending decisions are
identify a product, learn about the product, make a decision
find a product, save enough money, make the purchase
Setting Goals, Gathering Info., thinking about trade-offs
61
depression
an increase in the average price of all goods and services
the highest point in the business cycle
a long-lasting and severe recession
62
Federal Reserve System
the name of the central bank of the U.S.
banks that provide checking and savings accounts
a corporation that insures bank deposits up to $100,000
63
If the price of a complementary good decreases, what happens to the price of its complement?
The complement price will go up
The complement price stays the same
The complement price goes down
64
Complementary Goods
goods that are used with each other
economic law that says one will buy more as the price drops
graph showing the amt of goods bought at different prices
goods that can take the place of one another
65
credit union is
a bank who controls the nation's money supply
the name of the central bank of the U.S.
bank that is owned by members who belong to a certain group
66
Perfect competition exists when
a large number of farmers all sell identical wheat
there is a monopoly
a large number of gas stations agree to fix prices
67
What happens to the price of goods during deflation?
The cost stays the same
The cost of goods goes down
The cost of goods goes up
68
Social Welfare Programs
min. income that a family must have to meet its basic needs
programs that provide assistance to people who cannot work
non-profit orgs that take donations then give aid to people
prgms to stop pov., Soc Sec, worker's comp. Paid by workers
69
What is a bait and switch
an illegal form of advertising
deceit or trickery
things that come first in order of importance
70
Which is an example of a worker who has lost their job due to better capital resources.
Person who used to place the bolt on the car to be tightened
Person who repairs the new machine on assembly line
Person who operates the new machine on the assembly line.

Economics Final Flashcards | StudBud