FINAL STUDY GUIDE ECONOMICS

What is the desire, ability, and willingness to purchase a product What is the currency that has value because the government says it does.___________________ What do you call the four resources needed to produce goods and services.________________ What is the name of a term when a price at which a product sells out and which satisfies the demand.________________________________ What do you call the rule that says that workers don’t have to belong to a union to be hired but must join after beginning work.______________

6. What do you call a business organization in which the business has all the rights of an individual. ______________________________ 7. What is government spending that must be authorized each year._____________________ 8. What is the name of the cost of the next best use of money, time, or resources after making a choice. _________________________________ 9. What is an industry dominated by a few large sellers._________________________________ 10. What type of economy is one in which the central authority determines the WHAT, HOW, and FOR WHOM decisions. ________________

11. This term describes the quantity demanded changes because the relative price of a product changes. _______________________________ 12. This a term that describe the amount of shares of a corporation. _________________________ 13. VA T is the tax on the increased value of a product at each stage of production. ________ 14. What is the degree to which a producer changes the supply of a product in response to a price change. ________________________________ 15. What is the cost of producing one more unit of a product. ________________________________

16. The problem that economics tries to solve is how to _____________________ Where do individuals like you and me earn their incomes in ________________ The free enterprise economy thrives on all of the following__________________ 19. The chief disadvantage of a sole proprietorship is that the owner_______ 20. A multinational corporation has_____

21. The study of the economic behavior of individuals and firms is called ________________ 22. A demand curve shows all of the following EXCEPT __________________________________ 23. A modest price increase for local cable television service has had little or no effect on the demand, indicating that demand for the product is _________________________________________ 24. In a market economy, a low price is a signal for PRODUCERS TO___________________________ 25. At a given price, a surplus occurs when THE QUANTITY________________________________

26. The concept of laissez-faire means KEEP THE GOVERNMENT ___________________________ 27. A market structure characterized by identical products and a large number of reasonably well- informed buyers and sellers who act independently describes ____________________ 28. When labor and management decide to go to arbitration, both parties are willing to accept the decision of a third party_____________________ 29. The theory that states that the supply and demand for workers’ skills determines wages is the ______________________________________ 30. The single most important source of revenue for the national government _________________

31. If one individual earns $10,000 and pays $2,000 in taxes and a second individual earns $100,000 and pays $20,000 in taxes, the government is said to be using ______________________________TAX. 32. The steps in initiating and approving a federal budget occur in this order; ___________________ 33. The federal deficit has all of the following effects EXCEPT ___________________________________ 34. The Federal Reserve notes used as currency today are INCONVERTABLE _________________________ 35. The most recognized measure of stock performance is the Dow Jones Industrial Average, which measures 30 representatives stocks on the _____________________________________________

The United States government affects the market structure and protects the consumer by passing legislations such as A:___________________________________________ _________________________________________ __________________________________________ It is important for the average person to understand the basic mechanism of supply and demand in the market economy because A: __________________________________________ __________________________________________

38. What is the lowest interest rate banks will charge costumers _______________________________ 39. What is the value of goods exported compared to value of goods imported ____________________ 40. What is value of final goods and services produced within a country. ___________________________ 41. What is the percent of deposits a bank must hold in its vaults or deposit with the Federal Reserve System. __________________________________ 42. What is the name given to the failure to repay a loan _____________________________________

_____________________________________ 43. What is a program providing tax credits or cash for the poor ______________________ 44. What is the name of a union organized by the Polish Lech Walesa ____________________ 45. What is the value of final goods and services produced both within the country and abroad _____________________________________ 46. What is the struggle among sellers to attract consumers ___________________________ 47. What is a government’s plan for using taxing and spending to stabilize the economy _____________________________________

48. What is the name given to goods shipped out of the country _____________________________ 49. What is the name of a location where businesses get tax advantages _______________________ 50. What is the name given to the official currency of the European Union _______________________ 51. What is the name given to the state-owned joint operations which were run by peasants in the old Soviet Union ____________________________ 52. What is the name given to all the goods and services that all businesses produce at all price levels ___________________________________

53. What is the name given to the amount of money the consumer sector of the economy has available for spending after personal income taxes have been deducted____________________________________ _ 54. What part of United States has seen an increase in population since the 1970’s, before the center of population was around Baltimore, Maryland. ____________________________________________ 55. Most business economies pass through a period of __________________________________________after going through a tough period of recession. 56. In a MARKET ECONOMY, a high price is a signal for ______________________________________________ 57. THE UNEMPLOYMENT RATE is not a completely accurate measure of how many people are out of work because it, doesn’t _______________________________________

58. The FED uses all of the following to conduct monetary policy price controls, reserve requirement and buying and selling government securities, EXCEPT ____________________________________ 59. DEMAND ELASTICITY can be estimated by using the _________________________method 60. SUPPLY SIDE ECONOMICS is a method in which __________________ is used to stimulate investment and consumer spending and lower unemployment 61. A long range effect of the baby boom will be an increase in ________________________________ 62. COLLECTIVE BARGAINING refers to _______________________________ negotiations.

63. The terms Absolute Advantage and Comparative Advantage are terms related to ________________ engaged in trade. 64. Why are TRADE BARRIERS enacted? ___________________________________________ 65. What are the characteristics 0f perfect competition? ________________________________ 66. One effect of NAFTA was to reduce ___________ among United States , Mexico and Canada 67. In the final years of the Soviet Union, Mikhail Gorbachev instituted a policy of PERESTOIKA, which called for _______________________the economy and converting to a market economy

68. The Japanese economy is characterized by. ________ 69 68. The Japanese economy is characterized by.________ 69. The most popular and widely publicized measure of stock market performance on the New York Stock Exchange is the ___________ INDUSTRIAL AVERAGE 70. MULTINATIONAL CORPORATIONS have operations in ________________ 71. The borrowing power of a developing nation is weakened if it has a history of _______________ 72. A modified free enterprise economy has all of the following advantages? _______________________________________

73. Explain how environmental concerns, developing nations, and growing economic interdependence will affect a growing global economy by: _________________________________________ _________________________________________ _________________________________________ _________________________________________ _________________________________________ _________________________________________ _________________________________________

74. Explain why has the modified free enterprise system emerged as the dominant economic system in the world today… ____________________________________________________________