economics flash cards

1. Unemployment hurts the economy as a whole because

2. The unemployment rate is

3. Full employment means

4. Structural unemployment can result from

5. Seasonal unemployment:

6. During the Great Depression of the 1930’s, the United States faced severe

7. Serious recessions in 1974–75, 1980–82, and 1990–91 were marked by high levels of

8. When prices rise, workers often bargain for higher wages to stay ahead of inflation. To cover the cost

9. What is the system of exchange that does not involve money called?

10. In Virginia in the early 1600s, tobacco was used as a form of

11. What was the major success of the Federal Reserve system in its early years?

12. The Gold Reserve Act of 1934

13. What is an example of automated banking?

14. What caused the Panic of 1907?

15. The traditional fear of a single bank dominated by a few financiers led to the

16. When making loans, the Fed considers whether the

17. In serving as the government’s bank, the Fed

19. The major goal of the Fed is to

20. When the Fed charges lower interest rates to borrow money:

21. The prime rate is the interest rate

22. A flat rate tax is also called a

23. A tax that takes a larger percentage of income from low-income groups than from high-income

25. To help reduce inflation, Congress might

27. Who established a number of socialist communities in the early 1800s?

28. Under Stalin’s five-year plans:

29. The Four Modernizations targeted modernization of

30. When a nation can produce a certain good with greater efficiency than a can a trading partner, that

33. A rise in interest rates in the U.S. will cause what to happen?

34. Historically, embargoes have been enacted because

36. Examples of existing regional trade agreements include the

37. By building plants in countries with which they do business, multinational corporations are able to

38. An entrepreneur is a(n)

39. Specialization increases productivity because

40. A company might improve efficiency by

41. You are in the clothing store. You see a pair of pants and a T-shirt that you like. However, you have

42. The means of exchange that relies on bargaining is

43. A standardized means of exchange is

44. The purpose of money is to serve as a

48. In which economic system are the answers to the basic economic questions determined by custom?

53. The quantity of goods that consumers are willing and able to buy at a series of prices can be listed on

54. A popular rock band’s new CD receives a very bad review. The band’s popularity declines and

55. If the U.S. government prohibited trade with a foreign country, the demand curve for American

56. Which of the following factors affect a product’s demand elasticity?

57. If a product is not a necessity, it will tend to have

58. If producing a good takes a great deal of time, money, and resources that are not readily available,

59. Gold is an example of a good that has

60. If, after the passage of time, the determinants of supply cause an increase in the supply of a product,

61. If, after the passage of time, the determinants of supply cause an decrease in the supply of a product,

62. If new pollution controls are imposed on companies that make wrenches, the supply of wrenches will

63. The three stages of production that can be predicted by the law of diminishing returns are increasing

72. Over time, a price floor may cause

73. Critics charge that rationing is an unwise economic policy because it

74. The place where goods are exchanged illegally at prices that are higher than officially established

84. The chief advantage of sole proprietorships is that they are

85. The disadvantage of a sole proprietorship that could directly affect the owner’s family is

86. The advantages of partnerships include ease of start-up, specialization, shared decision making, and

87. The business organization that can hire workers and own property as if it were an individual is the

88. Two advantages of corporations that benefit stockholders are flexibility and

89. Which of the following are disadvantages of corporations?

90. The Standard Oil Trust was an example of a

91. A major advantage of corporate mergers is

92. Which of the following forms of business organizations does not focus on financial gain for its

97. What are the 3 C’s of Credit?

Rate of return

Compound interest

Opportunity cost

Incentive

Income

Wealth/Net worth

Rule of 72

Financial risk

Market price risk

Liquidity risk

Real rate of return

Fraud risk

Passbook savings account

Certificate of deposit

U.S. savings bond

Annual rate of return

Inflation

Money market mutual f

Stocks

Stock mutual fund

Real estate

Inflation risk

Risk/Reward ratio