Free Enterprise Final Study Guide

Front 1

Explain Trade Off

Back 1

Exchanging one thing for the use of another

Front 2

where socialism & economic quaility are combined

Back 2

welfare state

Front 3

What is the best type of rate to obtain if interest rates decline for a home mortgage?

Back 3

flexible rate mortgage

Front 4

What shows an inverse relationship between price and quantity demanded?

Back 4

Aggregate Demand Curve

Front 5

Economists keep track of inflation by calculating what?

Back 5

consumer price index

Front 6

How do businesses buy and sell currencies for other nations

Back 6

foreign exchange market

Front 7

What are the characteristics of capitalism?

Back 7

private property, profit, price

Front 8

Making imports cheaper and devaluation of a country's currency can improve its ______.

Back 8

balance of trade

Front 9

What is the main purpose of the government's antitrust laws?

Back 9

insure fair competition

Front 10

Define Law of Demand

Back 10

quantity demanded & price move in opposite directions as price goes up, demand goes down, price goes down, demand goes up.

Front 11

How do you compare the cost of different types of installment credit?

Back 11

Annual percentage rate

Front 12

What controls the market in perfect competition

Back 12

supply and demand

Front 13

for long term security & good return on their money while post-poning income tax

Back 13

Individual Retirement Account

Front 14

What is the first thing you should calculate before taking out a loan?

Back 14

safe debt loan;collateral?

Front 15

Explain the types of promotion and list the three factors.

Back 15

Advertising, direct mail, newspapers, magazines, radio, & TV. 1.)the product 2.) type of consumer that co. wants to attract 3.) amount of $ plans to attend

Front 16

16

Back 16

global integration

Front 17

statistics that measure variables in the economy, such as stock or dollar amount of bans to be repaid

Back 17

economic indicators

Front 18

What is used by economists to predict trends in the market and provide information about the real world?

Back 18

economic models or theories

Front 19

What type of socialism works within the constitutional frame work?

Back 19

Democratic Socialism

Front 20

Which national goal uses resources in such a way to achieve maximum production?

Back 20

economic growth of efficiency

Front 21

21

Back 21

trade off

Front 22

What type of debt is used to make large purchases that can be paid over a long period of time?

Back 22

consumer durables

installment debt?

Front 23

List the functions of money

Back 23

medium of exchange, unit of accounting, store of value

Front 24

Define Income Redistribution

Back 24

social security payments are a form of IR

Front 25

Monetarist believe the FED should establish a fix target rate for the growth of the money supply is called what

Back 25

monetary rule

Front 26

system combining characteristics of more than one type of economy w/others so that mix varies & the economic system created leans more toward pure type than another Ex. Mexico gov. has no say so

Back 26

mixed economy (regulates monopolies) & pure Market economy (Doesn't Regulate Momopolies)

Front 27

list and explain the factors of production.When you combine all the factors of production together, productivity increases

Back 27

1. land (natural resources)
2. labor (human resources)
3. capital (all property people use to make goods & services)
4. entrepreneurship (ability of individuals to start new businesses

Front 28

What type of debt can pay for a company's one month salaries and utility bills?

Back 28

short-term financing

Front 29

Various companies can compete more efficiently in the international market by forming what?

Back 29

alliances

Front 30

Saving money and letting it mature is called what?

Back 30

time deposits or certificates of deposit

Front 31

Spending by the government that exceeds the money it takes in through taxation

Back 31

deficit financing

Front 32

receipt of money either directly or indirectly to buy goods & services in the present with the promise to pay for them in future

Back 32

credit

Front 33

theory that deals w/ the relationship between the amount of money the Federal Reserve places in circulation & the level of activity in the economy

Back 33

monetarism

Front 34

anything that people can use to make or obtain what they need or want

Back 34

resource

Front 35

measurement of the national economy's performance, dealing with the overall economy's performance

Back 35

national income accounting

Front 36

economic rule which states that the quantity demanded & price move in opposite directions

Back 36

law of demand

Front 37

prolonged rise in the general price level of goods & services

Back 37

inflation

Front 38

amount of money originally borrowed in a loan

Back 38

principal

Front 39

economic concept dealing with consumers responsiveness to an increase or decrease in prices

Back 39

elasticity

Front 40

all the activities needed to move goods and services from the producer to the consumer

Back 40

marketing

Front 41

rivalry among producers or sellers of similar goods to win more business by offering better prices/quality

Back 41

competition

Front 42

raising money for a company by selling stock in the company

Back 42

equity financing

Front 43

concept that it is profitable for a nation to produce & export a limited a assortment for goods for which it is particularly suited

Back 43

specialization

Front 44

amount of money the borrower must pay for the use of someone else's money

Back 44

interest

Front 45

way in which a nation uses its resources to satisfy its people's needs and wants

Back 45

economic system

Front 46

most extreme market form of imperfect competition in which single seller controls the supply of a good or service & thus has control over price

Back 46

pure monopoly

Front 47

value of the next best alternative given up for the alternative chosen

Back 47

opportunity cost

Front 48

arrangement among groups of industrial businesses to reduce international competition by controlling price, production, & distribution of goods.

Back 48

cartel

Front 49

ability of a country to produce a product at a lower opportunity cost than another country

Back 49

comparative advantage

Front 50

association of workers organized to improve wages & working conditions for its members

Back 50

labor union