Drumgoole - High School Economics Review - 2015

Front 1

Scarcity

Back 1

Limited quantities of resources to meet unlimited wants

Front 2

Traditional economy

Back 2

Economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services

Front 3

Opportunity cost

Back 3

The most desirable alternative given up as the result of a decision

Front 4

Market economy

Back 4

Economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets

Front 5

3 Basic Economic questions

Back 5

What to produce? How to produce? For whom to produce?

Front 6

Law of Demand

Back 6

Consumers buy more of a good when its price decreases and less when its price increases

Front 7

Substitution Effect

Back 7

When consumers react to an increase in a good's price by consuming less of that good and more of other goods

Front 8

Inflation

Back 8

a general increase in prices

Front 9

Gross domestic product

Back 9

The dollar amount of all final goods and services produced within a country's borders in a year.

Front 10

Specialization

Back 10

Workers concentrate on producing those goods and services for which they have a competitive advantage.

Front 11

Comparative advantage

Back 11

The ability to produce a good at a lower opportunity cost than another producer

Front 12

progressive tax

Back 12

a tax in which the tax rate increases as the taxable base amount increases.

Front 13

Proportional Tax

Back 13

A tax system that requires the same percentage of income from all taxpayers, regardless of their earnings.

Front 14

Entrepreneurship (FACTOR OF PRODUCTION)

Back 14

It involves a special human skill that includes the ability to innovate by developing new ways of doing things, to take business risks and to seek new opportunities for opening and running businesses.

Front 15

Fiscal policy

Back 15

Government spending policies that influence economic conditions.

Front 16

Invisible Hand

Back 16

Encouraged people promote their own self-interests which would benefit the whole

Front 17

4 Basic Types of Business Ownerships

Back 17

-Sole Proprietorship
-Partnership
-LLC
-Corporation

Front 18

Unlimited liability

Back 18

owner forced to use personal money and possessions to pay the debts of the business.

Front 19

Limited liability

Back 19

business owner cannot be forced to use personal money and possessions to pay business debt.

Front 20

Sole Proprietorships

Back 20

single individual owns the business,
collects all profit from it, and has unlimited liability for its debt.

Front 21

Partnerships

Back 21

two or more individuals share the management, profit, and liability.

Front 22

Barrier to Entry

Back 22

Any factor that makes it difficult for a new firm to enter a market.

Front 23

Monoploy

Back 23

A market in which a single seller dominates.

Front 24

Monopolistic Competition

Back 24

A market structure in which many companies sell products that are similar but not identical.

Front 25

Oligopoly

Back 25

A market structure in which a few large firms dominate a market.

Front 26

Perfect Competition

Back 26

A market structure in which a large number of firms all produce the same product.

Front 27

transfer payment

Back 27

money distributed to individuals who do not provide goods or services in return

Front 28

Collision

Back 28

Price fixing is known as?

Front 29

Interest

Back 29

income earned from allowing someone else to use your financial capital

Front 30

401(K) plan

Back 30

plan that allows employee to save up to a certain amount of income per year and avoid paying taxes on the income until it is withdrawn

Front 31

Credit

Back 31

ability of a customer to buy goods or services before paying for them, based on an agreement to pay later

Front 32

Private Property

Back 32

property owned by individuals or companies, not by the government or the people as a whole

Front 33

competition

Back 33

rivalry among producers or sellers of similar goods and services to win more business by offering the lowest prices or better quality

Front 34

Federal Trade Commission (FTC)

Back 34

agency whose purpose is to encourage free enterprise and prevent restraint of trade and monopolies;

Front 35

Food and Drug Administration (FDA)

Back 35

US regulatory agency responsible for the safety of foods and cosmetics, and safety of medical drugs and devices; reviews new drug applications, implements standards, and regulates the sale of restricted drugs

Front 36

Federal Communications Commission (FCC)r

Back 36

regulates TV, radio, telegraph, and telephone services; grants licenses, creates and enforces rule of behavior for broadcasting

Front 37

Securities and Exchange Commission (SEC)

Back 37

regulates the sale of stocks, bonds, and other investments; licensing agency for brokers

Front 38

Occupational Safety and Health Administration

Back 38

regulates the workplace environment; ensures that workplaces are safe and healthful for employees

Front 39

imports

Back 39

goods produced in foreign countries and purchased by residents of the domestic country

Front 40

exports

Back 40

goods produced in he domestic country and sold to residents of a foreign country

Front 41

Credit Union

Back 41

a bank owned by its customers

Front 42

the F.D.I.C.

Back 42

What insures depositor's money if a bank goes bankrupt:

Front 43

stock

Back 43

share of ownership in a corporation

Front 44

government

Back 44

In a command economy most decisions about production are made by:

Front 45

fiat

Back 45

What kind of money does the United States have?

Front 46

What did Adam Smith say about the economy?

Back 46

That the government should have limited involvement in the economy because of the "invisible hand" of self interest

Front 47

What is a mortgage?

Back 47

installment debt owed on houses, buildings, or land

Front 48

What are some determinants of demand?

Back 48

1) changes in population 2) changes in income 3) changes in tastes and preferences

Front 49

What are the four determinants of supply?

Back 49

1) price of inputs 2) number of firms in the industry 3) taxes 4) technology

Front 50

What are the four market structures?

Back 50

1) perfect competition 2) monopolistic competition 3) oligopoly 4) monopoly