Economics Final Study Guide

organization that worked to protect consumers

Better Business Bureau

In 2015, the U.S. government debt was approximately

$14 T

a woman reviews her budget, debt, and spending habits when considering whether to purchase a home

economic perspective

what country’s collapse altered U.S. military spending

Russia

what government agency deals most directly with consumers and their rights and protection?

federal trade commission

what country owns a large portion of U.S. debt?

China

things you miss out on when you decide to spend your money on something else

opportunity cost

money owed that imposes a higher interest rate because repayment is not guaranteed

unsecured debt

weighs the costs and benefits of each measure before making an economic decision

economic perspective

money owed that is guaranteed by the thing it is used to purchase

secured debt

a problem created by unlimited wants and resources

scarcity

a shopper picks the item that represents the greatest value

rational choice

what segment of society represents a challenge to the Social Security system?

baby boomer generation

a consumer’s record of going into and getting out of debt in a faithful and punctual way

credit

what portion of the government spending too up the largest percentage in the 2016 budget?

healthcare

what aspect of government spending increased greatly in the spring of 2010

healthcare

what allows lenders to make money in exchange for loans?

interest

type of economic system characterized as agricultural and lacking in technology

traditional

what area best exemplifies a traditional economy?

Amazon Rainforest of South America

economic system with little chance to gain wealth or succeed

command

a tax on goods imported from other countries

tariff

transactions in a traditional economy

barter or trade

the conducting of business

commerce

originated in the ideas of Karl Marx and Frederich Engles

communism

in the articles of confederation, Congress did not have the power to ____

collect taxes and regulate commerce

pamphlet of communist economic thought

*Communist Manifesto*

primary motivating factor in a market economic system

profit

concept of a double coincidence of thoughts is instrumental for ___

the barter system

government holds near complete control over the lives of its citizens

totalitarian

concepts of the market economic system stem from this movement

the Enlightenment

the creators of the mixed economic system came from ___

the United Kingdom

this attempted to explain how capitalism could end in a worker-operated government without social classes

*Das Kapital*

both the buyer and seller will do what is right in order to maintain a trading relationship

self-interest

philosopher most associated with a free-market economy based on self-interest

Adam Smith

the French word for a member of the working class

proletariat

consumers and sellers create a ___ where goods and services are exchanged

marketplace

the overvaluing of property or land

overspeculation

the point at which a country’s GDP and economy reach top efficiency and are immediately followed by a downturn

peak

a rise in prices due to the loss of value of money

inflation

a recession that is very long and severe

depression

a person who places money in a bank

depositor

one of the first three departments of the early American government

Department of State

where can an agency responsible for putting together business cycle information be found?

a private company not found within the government

the depression of 1893 directly contributed to the growing popularity of this Party

populist

people suffering from the 1873 depression pushed for

the reissue of greenback dollars from the Civil War

In 1837, President Jackson caused a depression for MvB during his fight with ___

the Bank of the United States

a major cause of the 2008 financial crisis

banks made risky loans and inflated housing prices

fluctuations through a series of economic expansions and contraction, which is part of ___

the business cycle

the lowest period for a country’s GDP is called a ___

trough

what war and subsequent agricultural surplus contributed to the 1857 depression?

Crimean

an economic peak is followed by

recession

an economy going from the trough to the peak is in a state of

expansion

in order for a country’s economic condition to be considered a recession, the economy and GDP must be in decline for

6 months

one major cause of the economic downturn of 1819

a wave of overspeculation in the Western frontier territories

the absence of any competition within a particular market of a good or service is a ___

monopoly

this allows the government to practice eminent domain, or the taking away of property if the government provides fair payment for the property

The Takings Clause

when did the US begin its involvement in the economy

late 1800s

lack of property rights contributed to the demise of

the Soviet Union

this ended harmful monopolies and created the FTC

Clayton Antitrust Act

this established that the government has a right to regulate the economy

Sherman Antitrust Act of 1890

this case gave the government more power in practicing eminent domain

*Kelo v. New London*

occurs when there are few competitors and high barriers to entry within an industry

oligopoly

ex. a company can offer a product at a lower price than other companies

natural monopoly

a new business created by an entrepreneur

startup

a free market economy allows citizens to control

the factors of production

financial institution that only serves a certain group of people

credit union

this event led to a more centralized banking system in the US

the Revolutionary War

this serves as a store of value, a medium of exchange, and a unit of account

money

this type of bank must be authorized by the Comptroller of the Currency of the U.S. Department of Treasury

commercial

money established by law to be money

fiat money

an agreed upon scale of worth for goods is a unit of ___

account

authorizes banks to transfer money

check

this region has the first evidence of banking-like institutions

Mesopotamia

if a bank closed, depositors’ money was guaranteed

creation of the FDIC

Chinese merchants stored money in one place and used it in another

invention of flying money

space inside safes was rented to others in order to protect gold

emergence of artisan banks

insurance and securities companies were allowed to offer banking services

intro of the Gramm-Leach-Bliley Act

kind of deposit that pays higher interest but restricts when funds may be withdrawn

time

example of thrift institution

savings bank

electronic version of paper money that is becoming more popular is called ___

e-cash

this was the major obstacle to the spread of banking in Europe during the 1500s

Roman Catholic Church

if the fed wanted to slow inflation, it would ___

sell securities in the open market

increase of circulated money that I meant to stimulate economic growth

stimulus

budget exists when government revenues and expenses are the same

balanced

a fiscal policy that encourages economic growth through tax cuts, a decrease in industrial regulation, increased government spending, or a combination of factors

expansionary

fiscal policy is the responsibility of

Congress and the President

the Federal Reserve bank responsible for beginning all Fed policy is based out of ___

New York

Congress and the President are responsible for passing a federal budget before ___ of each year

October 1st

This person created the Federal Reserve System

Woodrow Wilson

this movement was instrumental in the creation of the Federal Reserve System

Progressive

a condition that exists when the government takes in more taxes than they expend

surplus

When Congress creates an act that affects fiscal policy, it is considered ___

discretionary

this President was responsible for eliminating all connection between the dollar and gold

Richard Nixon

demand for a ___ good falls as income increases

inferior

quantity ___ is the amount of a service or good that consumers are able and willing to purchase at a specific time

demanded

the amount of a service or good that producers are willing and able to sell at a specific time

supply

a good used in place of another good

substitute

quantity demanded or supplied is measured in units of this

time

a normal good is defined by its relation to ___

income

a minimum price for a good or service set by the government is a price ___

floor