Unit 1
What is the definition of economics?
The study of how people, businesses, and nations make choices and use their resources
What direction do demand curves go?
Down and right.
What are the three types of business?
Sole proprietorship, partnership, and corporation.
What is a monopoly?
How many districts of the federal reserve are there?
12
What are the three levels of government
Federal
State
Local
What are the 4 economic systems?
Market, Command, Traditional, and Mixed
What is the name of the point where supply and demand curves meet?
The equilibrium point
What are the two types of stock?
Common and preferred.
Keep prices lower and forces businesses to sell what people want.
What is the goal of the federal reserve?
They protect other banks and keep them from failing, as well as other services such as clearing checks and printing money.
What is a tax on certain items such as alcohol, tobacco, or gasoline
excise tax
What is opportunity cost?
What is the law of supply?
The law of supply states that producers are willing to supply more of a a good or service as the price becomes higher
What is insider trading?
The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.
What is the goal of a union?
To protect worker's rights, ensure safe working conditions, and negotiate with employers.
What is the easiest way to measure the economy?
By the GDP.
What kind of tax is paid by both individuals and corporations
Income tax/corporate income tax
What is the goal of an economic system?
To establish a high standard of living
What can cause a shift in demand?
Income, price of other goods, change in taste or appearance, and expectations.
What's the difference between revenue and profit.
Revenue is all money brought in by a business, profit is the money left after employees and bills are paid.
How does automation affect the workforce?
It makes jobs easier but can replace workers decreasing the amount of available jobs.
What system is used to measure inflation?
Consumer Price Index (CPI)
Government (state and federal) get most of their funds through what type of taxes
Personal income taxes
What are the four factors of production?
The four things needed to produce goods and services. (Natural resources, labor, capitol, and entrepreneurs)
What can cause a shift in supply?
Scarcity of a resource, technology becomes more efficient, cost of capital, increase or decrease in the cost of labor, competition, and changing consumer tastes
What is the flow of payments for goods and services between households and businesses called?
What is bait and switch advertising?
An illegal form of advertising in which the consumer is offered a deal, and when they go to purchase the good or service they are told the deal is unavailable and are offered a worse deal instead
What are the 4 types of unemployment?
Cyclical, Frictional, Seasonal, and Structural
what is a basic policy that calls for non-interference by the government in business matters
Human made things that are used to produce goods and services
Capital
What is the area above the Equilibrium Point called?
Surplus
What does SEC stand for?
Securities and Exchange comission
What is a business in which employees are not required to join a union but must pay union dues
Agency shop
What is a time period where the GDP/Economy is increasing called?
Expansion
What is protectionism?
Government policies that restrict international trade to favor a country's industries