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ECONOMICS
Final Exam Study Question
Question | Answer |
---|---|
What are the factors of production? | land, labor, capital |
What are the 3 key eco questions? | what to produce, who to produce it for, and how to produce it |
Why would a business sell stocks or bonds? | for long term money |
Name an example of a natural monopoly | utilities |
What are the features of a perfect competition? | same product, same price |
Nursing schools applicants have decreased, less students, if continues, what will be the effect on the market for nurses? | wages will increase for nurses |
What does a supply and demand graph show? | equilibrium |
Functions of money | unit of account, measure of value, store of value |
At which stage of business cycle will unemployment increase? | recessionary/contraction stage |
command eco | gov controls all, lacks efficiency |
Name an ex of complementary goods | game, controller |
Why does gov regulate monopolies | prevent abuse of market power |
Describe the law of diminishing returns | output decreases per added worker |
How increase productivity? | innovation |
Supply decreases, price ... | increases |
Why pay taxes? | support government |
Supply side economics ______ businesses to boost the economy | deregualte |
How does money supply increase? | people save money, banks can make loans to businesses, etc. |
How do natural monopolies help society? | meet demand with large investment required |
How do credit unions differ from commercial bank | lower loan int charges, lower/no fees |
What is cyclical unemployment? | unemployment cause by contraction or recessionary period |
Full employment | no cyclical unemployment |
personal income tax | progressive tax |
sales tax | regressive tax |
how od commercial banks differ form a "savings and loan?" | offer more services |
what causes elasticity of goods to increase? | when there is a substitute |
why does the gov allow natural monopolies | can provide with lower costs |
gold is what type of money? | commodity |
which market structures use product differentiation? | monopolistic competition and oligopolies |
what happens to inferior goods when consumer wages increase? | demand goes down |
production possibilities curve shows... | opportunity cost |
name of ex of good with inelastic demand | medicine, water |
what is a trade of? | what you give to gain something |
business owner buys equipment and pays for labor in ______ market | factor market |
equilibrium eradicates what? | surplus and shortage |
what is FICA? | SS and medicare |
what is market eco? | producers use resources to meet demand and still make profit |
which market structure has more stable prices? | oligopoly |
which system vales private ownership? | capitalism |
what issue does command eco have in becoming market eco? | privatization |