Economic Final

Front 1

Sole proprietorship

Back 1

A business owned and managed by one person

Front 2

Liability

Back 2

The legal responsibility to repay debts and to pay for damages resulting from a lawsuit

Front 3

Partnership

Back 3

A business owned by two or more co-owners who share profits from the business and are legally responsible for the business’s debts

Front 4

Corporation

Back 4

A business owned by shareholders who have limited liability for the firms debts. Because it is considered a legal entity, a corporation can conduct business affairs in its name.

Front 5

Multinational corporation

Back 5

A corporation that does business in more than one country

Front 6

Business franchise

Back 6

An arrangement in which a parent company, distributes its products or services through independently owned outlets. The outlet owners, or franchisees, pay for the exclusive right to use the parent company’s trade name and sell its products or provide its services

Front 7

Cooperative

Back 7

A business organization that is jointly owned and operated by a group of individuals for their mutual benefit

Front 8

Nonprofit organization

Back 8

An organization that functions much like a business but does not operate to make a profit

Front 9

Characteristics of successful entrepreneurs

Back 9

-Ambition

- Self confidence

- Take risks

-Energy and discipline

-perseverance

-problem solving ability

-organizational skill

-Ability to motivate others

Front 10

Which form of business organization is most common?

Back 10

Sole proprietorship

Front 11

To expand their business, sole proprietorships most often depend on money from?

Back 11

Reinvesting their profits

Front 12

What is the role of silent partners in a limited partnership?

Back 12

They contribute capital but are not involved in day to day operations

Front 13

One advantage of a partnership over a sole proprietorship is that a partnership

Back 13

Can get credit more easily

Front 14

Venture capitalists invest in new businesses in exchange for

Back 14

Ownership shares

Front 15

The board of directors of a corporation is selected by and accountable to the

Back 15

Shareholders

Front 16

What is the main goal of a cooperative ?

Back 16

To offer its members low cost goods or services

Front 17

Foundations and land trusts are examples of

Back 17

Nonprofit organizations

Front 18

Labor force

Back 18

The portion of the population that has paid work or is seeking work. Active members of the military are not considered part of the labor force

Front 19

Offshoring

Back 19

Relocating work and jobs to another country

Front 20

Equilibrium wage

Back 20

The rate of pay that results in neither a surplus nor a shortage of labor.

Front 21

Fringe benefits

Back 21

Nonwage compensations offered to workers in addition to pay. Examples include health insurance plans and paid vacation

Front 22

Wage gap

Back 22

A difference in the wages earned by various groups in society

Front 23

Affirmative action

Back 23

Policies designed to promote the hiring of individuals from groups that have historically faced job discrimination.

Front 24

Collective bargaining

Back 24

Negotiations between an employer and a group of employees, usually represented by a labor union, to determine the conditions of employment

Front 25

Right to work law

Back 25

A law that prohibits employers from making union membership a requirement for getting or keeping a job. Twenty two states have right to work laws.

Front 26

Outsourcing is the practice of

Back 26

Using outside contractors instead of staff

Front 27

What determines wage rates in a labor market?

Back 27

Supply and demand

Front 28

How have fringe benefits lowered wage in some industries?

Back 28

They increase overall costs to employers

Front 29

What is the goal of affirmative action?

Back 29

To increase the presence of historically underrepresented groups

Front 30

What is a reason young workers seek entry level positions?

Back 30

To start building experience in a field

Front 31

Which period of US history brought legislation most supportive to collective bargaining?

Back 31

New deal

Front 32

Right to work laws in many states prohibit employers from

Back 32

Requiring workers to join a labor union

Front 33

One major reason woman earn less than men on average is that woman

Back 33

More often lose experiences by interrupting careers for family

Front 34

How do economists think private ownership most affects property maintenance?

Back 34

It is helpful because owners have an incentive to care for the property

Front 35

What is the economic purpose of market regulation?

Back 35

To influence the economic behavior or individuals and firms

Front 36

The US parent and trademark office was established to protect

Back 36

Intellectual property

Front 37

Establishment of which regulatory agency is associated with a 60 percent drop in workplace fatalities since 1972

Back 37

Occupational safety and health administration

Front 38

Which historical period bright the greatest increase in government involvement in the economy ?

Back 38

Great Depression

Front 39

Food stamps, the earned income tax credit, and unemployment insurance are examples of

Back 39

Income redistribution

Front 40

Regulation

Back 40

The establishment by the government aimed at influencing the behavior of firms and individuals.

Front 41

Eminent domain

Back 41

The power of a government to take an individuals property for public use if the owner is fairly compensated

Front 42

Regulatory agency

Back 42

A unit of government created to set and enforce standards for a particular industry or area of economic activity

Front 43

Merger

Back 43

The combining of two or more separately owned firms into a single firm

Front 44

Deregulation

Back 44

The process of removing government restrictions on firms in order to promote competition or encourage economic activity

Front 45

Common resource

Back 45

A resource that everyone has access and that can easily be overused or destroyed.

Front 46

Government failure

Back 46

Inefficient allocation of resources caused by government intervention in the economy

Front 47

Inflation

Back 47

An increase in the overall price level of goods and services produced in an economy

Front 48

Economic indicators

Back 48

Statistics that help economists judge the health of an economy

Front 49

Gross domestic product

Back 49

The market value of all final goods and services produced within a country during a given period of time.

Front 50

Unemployment rate

Back 50

The percentage increase in the average price level of goods and services from one month or year to the next

Front 51

Consumer price index

Back 51

A measure of price changes in consumer goods and services.

Front 52

Business cycle

Back 52

A recurring pattern of growth and decline in economic activity over time

Front 53

Recession

Back 53

A period of declining national economic activity, usually measure as a decrease in GDP for at least two consecutive quarters

Front 54

The market value of all final goods and services produced within a country in a given time period is the

Back 54

Gross domestic product (GDP)

Front 55

The difference between real and nominal GDP is that real GDP is adjusted for

Back 55

Inflation

Front 56

Why is the unemployment rate above zero when the economy reached full employment ?

Back 56

There are always some people in transition between jobs

Front 57

The official unemployment rate may be overstated because it ignores

Back 57

Workers in the illegal or informal economy who do not report their jobs

Front 58

One cause of inflation is

Back 58

A rise in the cost of production

Front 59

Business investment is most likely to increase during which phase of the business cycle?

Back 59

Expansion

Front 60

A decline in economic activity over a period of at least six months is called a

Back 60

Recession

Front 61

Why is consumer confidence important to the business cycle ?

Back 61

Confident consumers purchase more, increasing business profits and employment

Front 62

Tax equity

Back 62

The idea that a tax system should be fair.

Front 63

Tax incidence

Back 63

The allocation of the burden of a tax between consumers and producers

Front 64

Deadweight loss

Back 64

A loss of productor economic well being for which there is no corresponding gain

Front 65

Tax rate

Back 65

The percentage that is levied on the value of whatever is being taxed such as income or property

Front 66

Proportional tax

Back 66

A tax that takes the same share of income at all income levels

Front 67

Progressive tax

Back 67

A tax that takes the same share of income at all income levels.

Front 68

Progressive tax

Back 68

A tax that takes a larger share of income as income increases

Front 69

Regressive tax

Back 69

A tax that takes a smaller share of income as income increases

Front 70

Foreign debt

Back 70

The part of a country’s total debt that is owed to foreign creditors

Front 71

Debt forgiveness

Back 71

The cancellation of all or part of a debt.

(Kinda obvious)

Front 72

Capital flow

Back 72

The movement of money into and out of a country through foreign investment and other financial activities

Front 73

Economic development

Back 73

The process by which a country makes economic progress and raises its standard of living

Front 74

Developed country

Back 74

A wealthy, industrialized country in which the majority of people have more than enough income to meet their basic need and maintain a high standard of living

Front 75

Developing country

Back 75

A low-to medium income country in which most people have less access to goods and services than the average person in a developed country

Front 76

Least developed country

Back 76

A country that suffers from severe poverty and low standard of living

Front 77

Extreme poverty

Back 77

A condition in which people are too poor to meet basic survival needs, including food, shelter and clothing