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Econ
econ final review questions
90
Economics
12th Grade
12/19/2012

Additional Economics Flashcards

 


 

Cards

Term
Federal Reserve
Definition

the central banking system of the united states

 

Term
investments
Definition
the use of assets to earn income of profits
Term
Stock
Definition
a share representing a portion of ownership
Term
technologu
Definition
able to produce more products because of advance in
Term
asset
Definition
claim on the property or income of a borrower
Term
corporation
Definition
a legal entity owened by individual stock holders
Term
assets
Definition
money and other values belonging to individual s or businesses
Term
self
Definition
the motivating force behind free market
Term
yield
Definition
the annual rate of return on bond if it were held to ma
Term
a firms marginal cost is less than
Definition
at the most profitable level of production a firms marginal cash will be?
Term
Intrest rate
Definition
What is the cost of money
Term
money creation
Definition
The process by which money enters into circulation
Term
micro economics
Definition
basic econ, study of small level decision making
Term
privatized
Definition
to sell a state run business to individuals
Term
portfolio
Definition
a collection of financial assets
Term
dividen
Definition
the portion of corporate profits paid out to stock holders
Term
monitory policy
Definition
the actions the federal reserve takes to influence the level of gross domestic product in the economic gdp
Term
free rider
Definition
someone who wouldnt pay for a service but would get the benefits if it were a public good
Term
discount rate
Definition
rate the federal reserve charges for emergency loans to banks
Term
investment
Definition
the act or redirecting resources from being consumed today so they may create benefits in the future
Term
economic system
Definition
meathod used by society to produce and distribute goods
Term
inferior good will ___ with increase in profit
Definition
decrease
Term
3 charachteristics of a centrally planned economy
Definition
owns all capital, makes all economic decisions, each person is assigned a job
Term
demand
Definition
when a consumer is able to by a good
Term
capitol
Definition
any resource that is made by humans and used to create other goods and resources
Term
currency
Definition
coins and paper bills used as money
Term
bonds are usually a ____ risk
Definition
low
Term
12
Definition
federal reserve consists of how many banks
Term
true
Definition
supply side economist believe in lowering taxes
Term
bond
Definition
a certificate issued by a corporation, promising to repay a loan with interest rate to buyer
Term
public disclosure laws
Definition
requirement for companies to prove full information on a product
Term
traditional market
Definition
houses pay firms for goods and services and firms supply households
Term
quantity supplied
Definition
the amount a supplier is willing to supply at a certain price
Term
low risk
Definition
the main advantage of diversifying an investment policy
Term
money market
Definition
money that is lent for less than a year
Term
hoar it
Definition
what do sellers do if they expect the price of goods for sale to increase dramatically
Term
buying on margin
Definition
high risk investment with borrowed money
Term
capitol gain
Definition
the difference between a high selling price and low buying price
Term
primary market
Definition
market for selling financial assets that can only be reedemed by the original holder
Term
liability
Definition
term for a legally bound obligation to pay debts
Term
substitute effect
Definition
consumer react to increase in good, they buy diffrent priced good
Term
prime rate
Definition
rate of intrest banks charge to be customers
Term
money supply goes down
Definition
increase on discount race
Term
lessons the affect on natural buisness cycle
Definition
federal reserve altering the monitary policy
Term
easy money policy
Definition
monitary policy that increases the money supply
Term
FDIC (federal deposit insurance corporation)
Definition
government agency that makes sure customers money is safe in banks
Term
market supply curve
Definition
a graph of quantity supplied of a good by all suppliers at different prices
Term
Fiscal police
Definition
cutting taxes
Term
most affective way for customers to make their desires known
Definition
purchases you make and dont make
Term
inferior goods
Definition
goods that are same type but cheaper
Term
federal government spends an hour
Definition
250 million
Term
zoning law
Definition
regulation in a city or town that designates separate areas for residential and business
Term
public policy
Definition
laws and standards on topics of public interests
Term
subsidy
Definition
government payment that supports a business or market
Term
ceteris parvus
Definition
the assumptin that nothing but the price of a good will change
Term
protecting buyers/ knowledgable buyers
Definition
government ses its powers to make sure buisness disclose information
Term
supply and demand
Definition
determines price and quantity of a good produced
Term
promote inovation
Definition
why does the government protect inventors and authors by offering them patents and copyrights
Term
defaulting
Definition
failure to pay back a loan
Term
services
Definition
actions or activities that one person preforms for another
Term
incentives
Definition
expectation that encourages people to behave a certain way
Term
check clearance
Definition
banks record whos account gives up money and whos recieves money
Term
equities
Definition
claims of ownership in a corporation
Term
normal good
Definition
a good that consumers will demand more of when their income increase
Term
reducing interest rate
Definition
the federal reserve encouraging banks to lend out more of their reserves
Term
open marker operation
Definition
the buying and selling of government securities to alter the supply of money
Term
mutual funds
Definition
money pooled from small investers and used to purchase government funds
Term
return
Definition
the money an invester receives above and beyond the sum invested
Term
banks credit unions, finance company, insurance company
Definition
financial intermediaries
Term
bear market
Definition
a steady drop in the price of stocks over time
Term
bull market
Definition
a steady rise in the stock market over time
Term
par market
Definition
amount paid to purchase a bond that will be repaid at maturity
Term
free enterprise
Definition
economic system has little government interention
Term
laisses-faire
Definition
doctrine that the government shouldnt interfere in the market place
Term
poverty threshold
Definition
an income level which is below what is needed to support families or households
Term
traditional economy
Definition
government system that relies on custom, ritual, and tradition that decides questions of consumption and production of goods and services
Term
gold standard
Definition
the usa government made the american people have faith in currency in 1870
Term
oppertunity cost
Definition
alternative to give something up to get someting
Term
self interest
Definition
ones own personal gain
Term
required reserve ratio
Definition
the fraction of deposits that banks must keep on hand
Term
commodity
Definition
objects that have value in themselves and can also be used as money
Term
scarcity
Definition
limited quanities of resources to meet unlimited needs or desires
Term
net work
Definition
total assets minus total liabilities
Term
gold water natural gas oil
Definition
4 items that are considered to be land
Term
elastic
Definition
demand that is very sensitive to change in price
Term
marginal revenue
Definition
additional income of selling one more unit of good
Term
welfare
Definition
government aid to the poor
Term
law of demand
Definition
term for a change in price determines if consumes buy a good
Term
compliment
Definition
a good always used with another good
Term
demand curve
Definition
graphic representation of the quantities of a good that will be bought
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