3. opportunity cost
8. An Economy based on voluntary exchange operates automatically when
9. In a free enterprise system
When resources are privately owned,
11. In a market economy prices provide information. This means that prices
13. An economy with many entrepreneurs would probably
14. Give examples of what
illustrates a market?
15. In a market economy,
what organizes and coordinates the production of goods and
16. Economists say that scarcity is a relative concept. What does
17. Opportunity cost
18. According to your notes,
what are the economic decisions nations
need to address?
19. What type of economy
is most like that of today’s China?
20. While the utility is
increasing what is diminishing?
Define and give examples of
21. Explicit Cost?
22. Sunk Cost?
23. Ignored Costs?
24. What term best describes that there is no incentive to maintain objects that are held in common in a society?
25. In resource markets businesses compete against
26. Most businesses earn their profits by
Study the following diagram
- expanding frontier?
- inside frontier?
Study the circular flow model
- According to this diagram, in which market does business give money payments to households in exchange
for their productive resources?
- In which market do households give money payments to businesses in exchange for goods and services?
- If (MC)> (MB) then do what?
- If (MC)< (MB) then do what?
- Do Preferred stock holders receive their dividends before common share stockholders?
- By buying bonds, are you lending a corporation money?
- Can Municipal governments can issue bonds?
- Are United States government bonds issued and paid off by the U.S. Treasury Department?
- Should you always buy high, sell low or buy low and sell high?
- Do Mutual Funds shares usually fluctuate up and
- Can Yield
be defined as the percent of return on your investment?
- Which has less liquidity Passbook savings accounts or
CD’s and Money Markets?
- Can you take an itemized deduction on your taxes for the cost of
your work uniform?
- Owning what makes you an owner in the company?
- If you are filing your taxes jointly with your spouse and you have one child, who is responsible for
the information on the tax form?
- If you are married with one child and are filing a joint tax return whose social security numbers must
be on the return?
- What are allowed as itemized tax deductions?
- Why are Mutual
Fund shares are popular with investors?
- A portion of a companies profits distributed to a stockholder on the basis of their ownership of a share
of stock in the corporation is called
- List four types of investments from least riskiest to riskiest
- To buy or sell stock you must call
- If the rate of return is the amount earned divided by the original investment, what is your rate of return
if you earned $70 on a $700 investment?
- By saving money in your piggy bank you run the risk of someone stealing your money. Which type of risk would this be?
52. What are the four types of investment risk?
- Which stock buying option means, buying a stock @ a current price but paying back the loan at a future
price, betting on the value of the payback being lower than the value @ time of purchase?
- Put the following investments in order from lowest risk to highest risk.
Money Market, Collectibles, Stocks
- Loans in which interest is paid at intervals, the principal is paid at end of loan period.
The rule of 72 tells you how many years it will take to ___________ your money by dividing 72 by the interest rate of
your return on an investment.
- Diversifying your portfolio helps you survive weak markets. What
is the securities industry term for this type of market?
- Low interest savings account very liquid and safe if insured.
- If the number of shares available outweigh the quantity demanded the price will go __________.
- What type of investment diversifies your stock investments with some possible fees and expenses?
- Funds that charge a commission are called ____________.
- A savings account that gives you a fixed rate of return, but you must remain locked in for a fixed period
of time is called a _______________.
- Interest earned on interest after it is added to the principal is called ___________.
- What is money made when selling stock that is claimed as gross income?
- What is the term meaning that you are not buying into a company you are lending them money?
- Ownership in this type of security allows you a voice in corporate decision making by voting
- Insurance that banks and credit unions hold to guarantee your deposits
- What are the three C’s of credit and what do they mean?
- What are some ways to establish good credit?
- What type of report shows late payments made to creditors?
- Which type of credit is a car loan?
- Which type of credit is a credit card?
- Which type of credit is a home loan?
- If you have a credit card charging 12 percent annual interest, what is the monthly
- A company calls you and offers an investment opportunity with very high returns. All you have to do is recruit some of your friends who will also invest and soon your
checks will start rolling in. This is a description of which type of investment
- An obligation, responsibility, or debt is known as what?
77. In the Wheat Market Simulation, what was the relationship
between the amount of wheat people wanted to buy and the price?
78. Define the law of demand
79. Define equilibrium
80. Other things constant, what could cause a change in the demand(shift in the
demand curve) for Coca Cola?
81. Define the Law of Supply
82. When the price of an item changes, producers will usually:
83. What item will not change the supply for a good or service?
84. Which direction does the supply curve shift for the
85. The supply of cars when open-trade
agreements bring in new producers.
86. The supply of coffee when freezing
temperatures hit the major coffee-producing regions of Brazil and Costa Rica.
87. The supply of gasoline today
if there is an expected shortage and higher prices likely to occur next week.
Which direction does the demand curve shift for the following scenarios?
88. The demand for cars when people get a tax refund.
89. The demand for gloves after the first snow storm
90. The demand for hot dogs when the price of hot dog buns rises.
91. Price ceilings create a _________________.
92. Price floors create a _______________.
equilibrium price and quantity are