Economics Outcomes Final Exam

CH 1 What is Economics 4 Economists call the resources used to make all goods and services the _____ of _____. Know the factors of production (land, labor, capital, entrepreneurs) Factors production

CH 1 What is Economics 8 According to the _____ and _____ example, if a country decides to spend more on military goods, the country will have less money to devote to consumer goods. Guns butter

Ch 1 What is Economics? 9 The most desirable alternative given up as a result of a decision is called the _____ _____. Opportunity cost

CH 2 Economic Systems 26 A _____ economy relies on habit, custom, or ritual to decide what to produce, how to produce it, and to whom to distribute it. Traditional  know 4 types of economic systems (traditional, market, planned or command, mixed)

Ch 2 Economic Systems 42 The flow of goods, services, and money between households and businesses in the free market can be represented as flowing _____ ____ _____.   In a circle

CH 2 Economic Systems 43 The purpose of the free enterprise system is to give _____ freedom to make _____ choices.   Consumers economic

CH 4 Demand 79 When shoes at a local store went on sale at 50 percent off the regular price, the store sold almost every pair it had in less than a day. Which economic principle does this illustrate?   Law of demand

Ch 5 Supply 103 Farzona is opening a new coffee shop and is having trouble deciding on the price to charge for cappuccino. How will determining all the supply schedules of coffee shops in her market help Farzona? The market supply schedule would help Farzona determine the _____ supply of cappuccino at a certain _____.   Total certain

Ch 5 Prices Know how to find the equilibrium point on a graph.

Ch 7 Market Structures 153 Factors that make it difficult for new firms to enter a market are called _____ _____ _____. Barriers to entry

CH 8 Business Organization 185 In a _____ two or more persons share ownership and divide the responsibilities and profits. Partnership

CH 8 Business Organization 190 In a _____ proprietorship, one owner earns all the profits and is responsible for all the debts. Sole

Ch 8 Business Organization 196 Advantages of incorporating include limited liability for owners, _____ ownership, and ability to attract _____. Transferable capital

CH 9 Labor 233 Collective bargaining, mediation, and arbitration involve negotiations between _____ and _____ leaders. Union, company

CH 10 Money and Banking 245 Durability, portability, and uniformity are all essential characteristics of _____. Currency

CH 10 Money and Banking 254 The _____ _____ System improved the banking industry in the twentieth century by serving as a central bank with the power to lend to other banks in time of need. Federal Reserve

CH 11 Financial Markets 274-275 A bank is a _____ intermediary.

CH 10 Money and Banking 281 The _____ and _____ Commission is a government agency that regulates financial markets and investment companies. Security exchange

CH 12 GDP and Growth 303 An economist uses real GDP rather than nominal GDP to measure growth because real GDP reflects _____ more accurately than nominal GDP by using _____ prices. Output constant

CH 2 Competition   31 ___-_____is the motivating force behind the free market? Self-interest

CH 13 Economic Challenges 348, 349 The _____ Curve can show the distribution of income. Lorenz

CH 13 Economic Challenges What does the Lorenz Curve show about the distribution of income ? P 348, 349 The distribution of income was not completely equal.

CH 14 Taxes and Government Spending 360 To what category do a person’s earnings, the dollar value of a good or service, the value of a property, and the value of a company belong?   Tax bases

CH 14 Taxes and Spending 361 The kind of tax represented by the federal income tax rate table is a _____ tax. Progressive

CH 14 Taxes and Spending 361 With a progressive tax, the tax rate _____ with the amount of ____ income. Rises taxable

CH 15 Fiscal Policy 406 The _____ _____ effect influences businesses because deficit spending by the federal government makes it harder for private businesses to borrow. Crowding out effect

Ch 15 Fiscal Policy 432 Once the government has determined a new monetary or fiscal policy, the policy takes some amount of time to become effective. This delay is known as the _____ _____. Outside lag

CH 17 International Trade 444 A nation can gain a comparative advantage is by producing a _____ with a _____ opportunity cost. Product lower

CH 18 Economic Development 471 When considering developed nations and less-developed nations, one should remember that “development” refers to a nation’s ability to _____, _____ and _____ its people. feed, clothe, shelter

CH 18 Economic Development 479 A consequence of rapid population growth for less-developed countries is that to maintain its current level of _____, a country must increase its _____.   Development employment