Semester 1 Final Exam Review File

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Transcript Semester 1 Final Exam Review File

 Which
segment letter represents a
recessionary period?
X
 Which segment letter represents a
trough?
Y
 At
what 1900 value would the dollar have
been at in 1970?
 About .20 cents
 In
how many years was the world real
GDP BELOW 4%?
 17 years
 What
does the movement from a to a' on the
graph represent?
 a. an increase in demand
 b. an increase in quantity demanded
 c. a decrease in demand
 d. a decrease in quantity demanded
 What
is the
demand for
movie videos at
a price of $14?
 What will
happen to
demand if the
prices is moved
from $14 to
$16?
 What
would
cause the
movement
shown in this
chart?
(Think
complementary
items!)
A decrease in
the cost of
cameras
 What
would
cause the
movement
shown in this
chart?
 An increase in
taxes
 Shows a
change in
what?
 supply
 What
letter
represents the
demand of CDs at
$15?
 What
cost
would
support a
supply of
400
movies?
 If prices
moves from
$18 to $16
what
happens to
supply?
 What
is this
PPF
representing?
 Economic
growth
 What would
cause a move
from B to D?
 Increased
productivity
 What
would
cause a move
from A to E?
 Factories that
are available
but idle
Supply Schedule for CDs
 What
Price per CD
Quantity supplied
(in millions)
$10
100
$12
300
$14
500
$16
700
$18
900
$20
1,100
would a supply schedule curve look
like from this schedule?
 The
business cycle since World War II has
been characterized by:
 extended expansions alternating with
brief recessions.
 The stock market crash of 1929:
 marked the beginning of the Great
Depression in 1929
 Determining
GNP
 GDP+all payments received by U.S. from
outside U.S.-payments to foreign owned
resources in the U.S.
 Consumer
Price Index:
 Index that reports on price changes for
approximately 90,000 goods and services
 Increased prices=
 Demand for fewer products
 Complements:
 Items that are impacted by the cost of a
related item
 (i.e.: as the price of milk rises, the
demand for cereal decreases)
 Demand
schedule
 Listing of various amounts demand at a
particular price that might work in the
market
 Substitute effect:
 Consumers willingness to replace a
costly item with a less expense item
 Census:
 Survey
of people in U.S. taken every 10
years
 Census info…
 Baby Boomers:
 People born between 1946 and 1964
 Since colonial period
 U.S. has trended towards smaller households
 Population “center” of U.S.:
 Missouri
 Economic
growth benefits government:
 by expanding tax base
 U.S. economy can be defined as:
 Modified private enterprise
 Market Economy:
 Does not provide for everyone's basic
needs
 Attempt at Economic Equity:
 Minimum wage
 Purpose
of government in a command
economy?
 Make major economic decisions
 SEC:
 Securities
and Exchange Commission
 Regulates the sale of stocks
 Money
that has an alternative use:
 Commodity money
 Money loses value when:
 Becomes too plentiful
 FDIC:
 Protects our savings
 For money to have value it must be:
 Portable, Durable, and Divisible


nation's central bank
Federal Reserve System


anything a government decrees to be money
fiat money


rush by depositors to withdraw their funds from a bank
run on the bank




anything that serves as a medium of exchange and a store of
value
money
paper currency that was printed with green ink on both
sides
greenback






worth that can be expressed in dollars and cents
value
tools, equipment, machinery, and factories used in the
production of goods and services
capital
condition of not having enough resources to produce all the
things people want
scarcity

cost of the next best alternative use of money, time, or
resources when one choice is made rather than another
opportunity cost


people with all their efforts, abilities, and skills
labor



manufactured goods that are used to produce other goods
capital good


basic requirement for survival
need

way of expressing a need that leads to a preference for
some goods over others
want


work that is performed for someone
service


market where productive resources are bought and sold
factor market



Federal program of disability and retirement benefits that
covers most working people
Social Security

organized way in which a society provides for the wants and
needs of its people
economic system


income that does not increase even if prices go up
fixed income


market economy in which private citizens own the factors of
production
capitalism


privilege that entitles people to own their possessions
private property rights
