1. Economics Outcomes
Final Exam

2. CH 1 What is Economics 4
Economists call the resources used to make all goods and services the _____ of _____.
Know the factors of production (land, labor, capital, entrepreneurs)
Factors production

3. CH 1 What is Economics 8
According to the _____ and _____ example, if a country decides to spend more on military goods, the country will have less money to devote to consumer goods.
Guns butter

4. Ch 1 What is Economics? 9
The most desirable alternative given up as a result of a decision is called the _____ _____.
Opportunity cost

5. CH 2 Economic Systems 26
A _____ economy relies on habit, custom, or ritual to decide what to produce, how to produce it, and to whom to distribute it.
Traditional
 know 4 types of economic systems (traditional, market, planned or command, mixed)

6. Ch 2 Economic Systems 42
The flow of goods, services, and money between households and businesses in the free market can be represented as flowing _____ ____ _____.
In a circle

7. CH 2 Economic Systems 43
The purpose of the free enterprise system is to give _____ freedom to make _____ choices.
Consumers economic

8. CH 4 Demand 79
When shoes at a local store went on sale at 50 percent off the regular price, the store sold almost every pair it had in less than a day. Which economic principle does this illustrate?
Law of demand

9. Ch 5 Supply
103
Farzona is opening a new coffee shop and is having trouble deciding on the price to charge for cappuccino. How will determining all the supply schedules of coffee shops in her market help Farzona? The market supply schedule would help Farzona determine the _____ supply of cappuccino at a certain _____.
Total certain

10. Ch 5 Prices
Know how to find the equilibrium point on a graph.

11. Ch 7 Market Structures
153
Factors that make it difficult for new firms to enter a market are called _____ _____ _____.
Barriers to entry

12. CH 8 Business Organization
185
In a _____ two or more persons share ownership and divide the responsibilities and profits.
Partnership

13. CH 8 Business Organization
190
In a _____ proprietorship, one owner earns all the profits and is responsible for all the debts.
Sole

14. Ch 8 Business Organization
196
Advantages of incorporating include limited liability for owners, _____ ownership, and ability to attract _____.
Transferable capital

15. CH 9 Labor
233
Collective bargaining, mediation, and arbitration involve negotiations between _____ and _____ leaders.
Union, company

16. CH 10 Money and Banking
245
Durability, portability, and uniformity are all essential characteristics of _____.
Currency

17. CH 10 Money and Banking
254
The _____ _____ System improved the banking industry in the twentieth century by serving as a central bank with the power to lend to other banks in time of need.
Federal Reserve

18. CH 11 Financial Markets 274-275 A bank is a _____ intermediary.

19. CH 10 Money and Banking
281
The _____ and _____ Commission is a government agency that regulates financial markets and investment companies.
Security exchange

20. CH 12 GDP and Growth
303
An economist uses real GDP rather than nominal GDP to measure growth because real GDP reflects _____ more accurately than nominal GDP by using _____ prices.
Output constant

21. CH 2 Competition 31
___-_____is the motivating force behind the free market?
Self-interest

22. CH 13 Economic Challenges
348, 349
The _____ Curve can show the distribution of income.
Lorenz

23. CH 13 Economic Challenges
What does the Lorenz Curve show about the distribution of income ?
P 348, 349
The distribution of income was not completely equal.

24. CH 14 Taxes and Government Spending
360
To what category do a person’s earnings, the dollar value of a good or service, the value of a property, and the value of a company belong?
Tax bases

25. CH 14 Taxes and Spending
361
The kind of tax represented by the federal income tax rate table is a _____ tax.
Progressive

26. CH 14 Taxes and Spending
361
With a progressive tax, the tax rate _____ with the amount of ____ income.
Rises taxable

27. CH 15 Fiscal Policy
406
The _____ _____ effect influences businesses because deficit spending by the federal government makes it harder for private businesses to borrow.
Crowding out effect

28. Ch 15 Fiscal Policy
432
Once the government has determined a new monetary or fiscal policy, the policy takes some amount of time to become effective. This delay is known as the _____ _____.
Outside lag

29. CH 17 International Trade
444
A nation can gain a comparative advantage is by producing a _____ with a _____ opportunity cost.
Product lower

30. CH 18 Economic Development
471
When considering developed nations and less-developed nations, one should remember that “development” refers to a nation’s ability to _____, _____ and _____ its people.
feed, clothe, shelter

31. CH 18 Economic Development
479
A consequence of rapid population growth for less-developed countries is that to maintain its current level of _____, a country must increase its _____.
Development employment