Unit 1
This basic economic problem exits in all nations
What is scarcity
A non-profit financial institution owned by its members
What is a credit union
When a business buys up companies that supply it with parts
What is a vertical merger
When quantity demanded equals quantity supplied
What is equilibrium
This economic system gives individuals the most influence over economic activity
What is a market economy
This is the relationship between financial investment options
What is high risk = high return
How a corporation can raise money that a sole proprietorship cannot
Workers demanding and getting pay raises would do this in a market
What is a decrease in supply
When a surplus exists in a market, this will happen evenually
What is price will fall
These are the 4 factors of production
What is Land, Labor, Capital and Entrepreneurship
Earning interest on interest
What is compound interest
Biggest disadvantage of a sole proprietorship
What is unlimited liability
Better technology tends to make this curve move in this direction
What is supply shifts right
A binding price floor creates this
What is a surplus
A rational decision is made here
What is where MB>=MC
A mutual fund tied to a benchmark like the S&P 500
What is an index fund
The amount of control over price in a perfectly competitive market
What is none
Prices fall and quantities fall when this happens
What is a decrease in demand
When quantity demanded is greater than quantity supplied
What is a shortage
These are the three questions all societies must address
What is what to produce, how to produce, and for whom to produce
Money paid to a stockholder for owning the stock
What is a dividend
A market with 2-4 companies dominating it
Price rise and quantities fall when this happens
What is a decrease in supply
When the government restricts prices in the marketplace (like rent control)
What is a binding price ceiling