1. FINAL STUDY GUIDE
ECONOMICS

2. 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.______________

3. 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. ________________

4. 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. ________________________________

5. 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_____

6. 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________________________________

7. 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 _________________

8. 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 _____________________________________________

9. 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: __________________________________________ __________________________________________

10. 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 _____________________________________

11. _____________________________________
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 _____________________________________

12. 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 ___________________________________

13. 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 _______________________________________

14. 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.

15. 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

16. 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? _______________________________________

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

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