Economics Final Exam Part 1
Comic books, video games, and jewelry are not necessities and are examples of __________
wants
Lawn mowing, housecleaning, and nursing are examples of ____________
services
Groceries, concert tickets, and sodas are physical objects that can be bought and are __________
goods
Food, clothing, and shelter are examples of _________
needs
the study of how societies work together to satisfy their needs and wants
Economics
the effort that peoplem devote to a task for whivh they are paid
Labor
consists of natural sesources that are used to make goods and services
Land
the unavailability of a good or service in a given situation
shortage
limited resources for meeting unlimited wants and desires
Scarcity
the three groups of resources that are used to make all goods and service
Factors of production
an ambitious leader who combines land, labor, and capital to create and market new goods and services
entrepreneur
the skills and knowledge gained by a worker through education and experience
Human capital
all human-made goods that are used to produce other goods and services
physical capital
the most desirable alternative give up as the result of a decision
Oppurtunity cost
an alternative that we sacrifice when we make a decision
trade-off
the government choice between making military goods or consumer goods
Guns or butter
deciding whether to do or use one addtional unit of some resource
Thinking at the margin
the power of consumer to decide what gets produced
Consumer sovreignty
the economic system that permits the conduct of business with minimal government intervention
Free enterprise
the method used by society to produce and distribute goods and services
economic system
the philosophy based on the belief that democratic means should be used to distribute goods and services
Socialism
a political system characterized by a centrally planned economy with all economic and policital power resting in the hands of the central government
Communism
the doctrine that the government generall should not intervene in the marketplace
Laissez-faire
selling a state-run firm to individuals
Privateization
the expectation tht ecourages people to behave in a certain way
Incentive
the concentration of productive efforts of individuals and firms on a limited number of activies
Specialization
one's own personal gain
Self-interest
the struggle among various producers for the consumer's business
Competition
Which is NOT a key economic question
How should it be ensured that goods and services are paid for?
a brand that has created loyalty beyong reason and has a place in a consumer's heart
Lovemark
People whether joining a cult or a brand, do so for the same exact reason
to belong and to make a meaning from it
Most advertisers who have ried to make motional connections ith consumer have ____________________
failed in their efforts
coins and paper bills used as money
Currency
anything used as a medium of exchange, a unit of account, and a store of value
Money
objects that have value in themelves as well as for their use of money
Commodity Money
money that has value because the government says it is acceptable for paying debts
Flat money
objects that have value because their holder can exchange them for something else of value.
Representative money
anything that is used to determine value during the exchange of goods and services
Medium of exchange
failure to pay back a loan
Default
the direct exchange of one good for another
Barter
something that keeps its worth
Store of value
something that serves as a way to compare values
Unit of account
What happens during a bank run?
More customers withdraw money than the bank has on hand
What happens when you make a purchase using a credit card?
The credit card issuer pays the store
If a bank deposit is FDIC insured......
your deposits are protected up to 250,000 if the bank fails
The main advantage of diversification as an investment policy is that it ______________
reduces risk to investors
An example of blue-chip stock might be ......
a large, well known company traded on the NYSE
The Dow Jones Industrial Average consists of .......
30 stocks that are considerd representative of the market as a whole
in a bear market.....
many investors are selling their stocks in anticipation of lower profits
a device for pooling the savings of investors and investing it in a variety of ways.
mutual fund