Microeconomics
What term describes the situation when quantity supplied is exactly equal to quantity demanded?
Equilibrium
A budget _______ is when tax revenues fall below
government spending.
deficit
The ability of a business to meet its cash financial obligation as they come due is called?
Liquidity
A person or nation who enjoys the benefits of a public good without contribution to the cost of maintaining it is called a(n)?
Freerider
What type of option gives the owner the right but not the obligation to buy a futures contract at a fixed price?
call
In a perfectly competitive market, what does demand curve for a perfectly inelastic good look like on a graph of quantity and price?
A vertical line
Workers who have lost their jobs due to a downturn in the business cycle represent _________________
unemployment.
cyclical
Total dollar sales minus the cost of goods sold on the
income statement is known as?
A ___________ tax is imposed on a mineral’s extraction.
Severance
When a student, over the age of 21, going to a bar and is charged a cover fee and then is charged for a beer, this is what type of first degree price discrimination?
two part
Name the curve that describes the maximum amount of one good that can be produced for every possible level of production of the other good.
Production Possibilities Frontier
What primary function is money serving when it is used to buy a ticket to a movie?
Medium of exchange
If the price of a stock rises, then this is considered to be what type of gain?
Capital
What term is used to describe the spreading of a city into more rural areas?
Urban sprawl
What is not included in the Free On Board factory price?
Shipping charges
In a competitive market, what arises if the equilibrium price is lower than the mandated minimum price?
surplus
List the four components of GDP
Consumer spending, government spending, investment, and net exports
This type of stock comes with voting rights.
common stock
In what year was the first Earth Day celebrated?
1970
Name the marketing technique that separates consumers into classes of people who respond similarly to marketing programs.
Market segmentation
What is the term for a good whose level of consumption is directly related to income?
Normal good
What is another name extremely high inflation?
Hyperinflation
How many stocks are in the Standard and Poor's Composite Index?
A(n) __________ is the effect of a decision on a third party not taken into account by the agent or decision maker.
externality
If the strike price on a call option is below the underlying futures prices, the option is said to be ______________.
In the money