Economy Final Exam

The amount of goods available

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

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

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

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

A market structure in which few large firms dominate a market

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

The right of a government to take private property

When quantity supplied is more than quantity demanded

Which is not a basic principle of free enterprise?

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

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

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

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

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

The strategy of spreading out investment to reduce risk

A low-denomination bond issued by United State government

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

A market for buying and selling stock

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

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

What are the two types of capital?

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

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

Not very sensitive to price changes

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

The point at which the demand and supply is equal

Which is not an example of the economic goals?

Which is not a type of bond?

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

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

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

A minimum price for a good or service

Why it's stock split done?

A bond with high risk and potentionally high yield

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

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

Very sensitive to price changes

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

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

A business that specializes in trading stocks

When quantity demanded is more than quantity supplied

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

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

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

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

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

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

A market for reselling financial assets

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

By paying dividends, this stock provides investors with income

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

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

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

A market structure in which a single seller dominate a market

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

Which is not one of the 3 components of bonds

The use of assets to earn income or profit

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

Which is not a factor in demand curve shifts?