Economic Fundamentals
Someone who combines land, labor, and capital resources in a creative way, assuming risk in return for a chance to profit
What is an entrepreneur
The condition occurring in a market when the price is above the equilibrium or market-clearing price is
what is a surplus
A financial arrangement allowing purchase and use now and later payments
What is credit
What does the law of demand predict about the relationship between prices and the number of purchases
What is lower prices buyers will purchase more items than at higher prices
An increase or decrease in quantities producers offer for sale at each and every price as a result of a change in an input cost is a
What is shift or change in supply
The various quantities of a good which producers are willing and able to offer for sale at a given time at different possible prices is
What is supply
A type of economic system in which the questions of what to produce, how much to produce, how to produce, and who will get the products, is answered by individuals consumers and producers is a
what is a market economy
A type of investment which confers ownership to the investors, and a chance to profit via dividends and capital gains is
what is a stock
A change in quantity demanded is caused by and represented graphically as a
what is a change in price of item of interest with a movement along the curve
The monetary policy tool of the Fed which involves buying or selling U.S. treasury securities is
What is an open market operation?
This states that at higher prices consumers generally buy small quantities, and at lower prices consumers tend to buy larger quantities.
What is the law of demand?
In the world of trade this is enjoyed by the producers who are able to produce an item at a lower opportunity cost than their competitors is
what is a comparative advantage
What is a high start up cost?
Basic monetary policy deals with which of the following?
What is changing the amount of money circulating in the economy?
The likely result of a price floor (i.e. minimum wage) is which of the following?
What is a surplus of workers?
The degree to which a price change of a good alters the quantity purchased of that good is
What is the price elasticity of supply
A form of business organization which furnishes limited liability for owners, unlimited life for the firm, and the ability to raise large amounts of money capital is a
what is corporation
The stock market in general may be defined as...
an organized means of linking savers and business investors
A credit card is a form of
Engaging in international trade results in which of the following?
What is more efficient use of scarce global resources?
What is an important advantage of a sole proprietorship?
What is psychological (being own boss)?
What is a basic reason for countries to engage in international trade?
What is Mutual benefit from exchange?
How does the stock market in general assist the global economy?
How does it allow money capital to travel where it is most needed?
The figure required by law to appear on all loan forms is the
What is APR?
The economic system of the U.S. is best described as
What is mixed?