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50 Cards in this Set

  • Front
  • Back
Explain Trade Off
Exchanging one thing for the use of another
where socialism & economic quaility are combined
welfare state
What is the best type of rate to obtain if interest rates decline for a home mortgage?
flexible rate mortgage
What shows an inverse relationship between price and quantity demanded?
Aggregate Demand Curve
Economists keep track of inflation by calculating what?
consumer price index
How do businesses buy and sell currencies for other nations
foreign exchange market
What are the characteristics of capitalism?
private property, profit, price
Making imports cheaper and devaluation of a country's currency can improve its ______.
balance of trade
What is the main purpose of the government's antitrust laws?
insure fair competition
Define Law of Demand
quantity demanded & price move in opposite directions as price goes up, demand goes down, price goes down, demand goes up.
How do you compare the cost of different types of installment credit?
Annual percentage rate
What controls the market in perfect competition
supply and demand
for long term security & good return on their money while post-poning income tax
Individual Retirement Account
What is the first thing you should calculate before taking out a loan?
safe debt loan;collateral?
Explain the types of promotion and list the three factors.
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
global integration
statistics that measure variables in the economy, such as stock or dollar amount of bans to be repaid
economic indicators
What is used by economists to predict trends in the market and provide information about the real world?
economic models or theories
What type of socialism works within the constitutional frame work?
Democratic Socialism
Which national goal uses resources in such a way to achieve maximum production?
economic growth of efficiency
trade off
What type of debt is used to make large purchases that can be paid over a long period of time?
consumer durables

installment debt?
List the functions of money
medium of exchange, unit of accounting, store of value
Define Income Redistribution
social security payments are a form of IR
Monetarist believe the FED should establish a fix target rate for the growth of the money supply is called what
monetary rule
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
mixed economy (regulates monopolies) & pure Market economy (Doesn't Regulate Momopolies)
list and explain the factors of production.When you combine all the factors of production together, productivity increases
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
What type of debt can pay for a company's one month salaries and utility bills?
short-term financing
Various companies can compete more efficiently in the international market by forming what?
Saving money and letting it mature is called what?
time deposits or certificates of deposit
Spending by the government that exceeds the money it takes in through taxation
deficit financing
receipt of money either directly or indirectly to buy goods & services in the present with the promise to pay for them in future
theory that deals w/ the relationship between the amount of money the Federal Reserve places in circulation & the level of activity in the economy
anything that people can use to make or obtain what they need or want
measurement of the national economy's performance, dealing with the overall economy's performance
national income accounting
economic rule which states that the quantity demanded & price move in opposite directions
law of demand
prolonged rise in the general price level of goods & services
amount of money originally borrowed in a loan
economic concept dealing with consumers responsiveness to an increase or decrease in prices
all the activities needed to move goods and services from the producer to the consumer
rivalry among producers or sellers of similar goods to win more business by offering better prices/quality
raising money for a company by selling stock in the company
equity financing
concept that it is profitable for a nation to produce & export a limited a assortment for goods for which it is particularly suited
amount of money the borrower must pay for the use of someone else's money
way in which a nation uses its resources to satisfy its people's needs and wants
economic system
most extreme market form of imperfect competition in which single seller controls the supply of a good or service & thus has control over price
pure monopoly
value of the next best alternative given up for the alternative chosen
opportunity cost
arrangement among groups of industrial businesses to reduce international competition by controlling price, production, & distribution of goods.
ability of a country to produce a product at a lower opportunity cost than another country
comparative advantage
association of workers organized to improve wages & working conditions for its members
labor union