Economics 1st Semester Exan

  1. Labor - Work performed by people to produce goods and services.

  2. Capital - Assets like machinery, buildings, and tools used to produce goods and services

  3. Shortage - A situation where demand for a product exceeds its supply

  4. Scarcity - Limited availability of resources to meet unlimited wants.

  5. Goods and services - Tangible products (goods) and intangible activities (services) provided to consumers.

  6. Efficient economy - An economy that maximizes the use of resources to produce the best outcomes

  7. Opportunity cost - The value of the next best alternative that is foregone when making a choice.

  8. Factors of Production - resources needed to produce goods and services, including land, labor, capital, and entrepreneurship.

  9. Physical Capital - Tangible assets like machinery and buildings used in production

  10. Technology - Application of scientific knowledge for practical purposes, especially in industry.

  11. Centrally planned economy - An economic system where the government makes all decisions about production and distribution.

  12. Free market economy - An economic system based on supply and demand with minimal government intervention.

  13. Key economic questions - What to produce, how to produce, and for whom to produce.

  14. Karl Marx - Economist and philosopher who co-authored "The Communist Manifesto" and critiqued capitalism

  15. Adam Smith - Economist known for "The Wealth of Nations" and the concept of the invisible hand

  16. Vladimir Lenin - Leader of the Russian Revolution who implemented Marxist ideas in the Soviet Union.

  17. Friedrich Engels - Co-author of "The Communist Manifesto" with Karl Marx.

  18. Traditional economy - An economic system based on customs, traditions, and beliefs.

  19. Purpose of competition - To drive innovation, improve quality, and lower prices.

  20. Economic system - The structure and methods a society uses to produce and distribute goods and services.

  21. Government intervention - When the government gets involved in the economy to influence outcomes.

  22. Social Security - A government program that provides financial assistance to retirees and disabled individuals.

  23. Consumption - The use of goods and services by households.

  24. Demand Schedule - A table showing the quantity demanded of a good at different prices

  25. Demand Curve - A graph showing the relationship between the price of a good and the quantity demanded

  26. Market Demand Schedule - A table showing the total quantity demanded by all consumers at different prices.

  27. Market Demand Curve - A graph showing the total quantity demanded by all consumers at different prices

  28. Law of demand - The principle that, all else being equal, an increase in price leads to a decrease in quantity demanded.

  29. Complement - A product that is used together with another product

  30. Substitute - A product that can be used in place of another product.

  31. Luxury - A good that is not necessary but is desired for comfort and pleasure.

  32. Shift in the demand curve - A change in demand due to factors other than price, such as income or preferences.

  33. Law of supply - The principle that, all else being equal, an increase in price leads to an increase in quantity supplied.

  34. Government subsidies - Financial assistance provided by the government to encourage the production or consumption of a good.

  35. Fixed cost - A cost that does not change with the level of output

  36. Variable cost - A cost that varies with the level of output.

  37. Natural Monopoly - A market where a single firm can produce the entire output at a lower cost than multiple firms.

  38. Perfect Competition - A market structure with many buyers and sellers, where no single buyer or seller can influence the price.

  39. Monopolistic competition - A market structure with many firms that sell similar but not identical products.

  40. Oligopoly - A market structure with a few large firms that dominate the market

  41. Monopoly - A market structure with a single firm that controls the entire market

  42. Non-price competition - Competition based on factors other than price, such as quality or service.

  43. Barriers to entry - Obstacles that make it difficult for new firms to enter a market

  44. Sole proprietorships - A business owned and operated by one person

  45. General partnership - A business owned and operated by two or more people who share profits and liabilities

  46. Corporation - A legal entity that is separate from its owners, with its own rights and liabilities 

  47. Barter system - An exchange system where goods and services are traded directly without using money

  48. Federal Deposit Insurance Corporation(FDIC) - A government agency that insures deposits in banks and thrifts.

  49. Mortgage - A loan used to purchase real estate, where the property serves as collateral

  50. Credit card - A card that allows the holder to borrow funds to pay for goods and services.

  51. Credit Score - A numerical representation of a person's creditworthiness

  52. Credit Report - A detailed report of an individual's credit history

  53. Income for banks - revenue generated by banks, primarily from interest on loans and fees.

  54. Principal - The original amount of a loan or investment.

  55. Interest - The cost of borrowing money or the return on investment.

  56. Credit Union - A member-owned financial institution that provides banking services

  57. Finance Company - A company that provides loans to individuals and businesses.

  58. Life Insurance Company - A company that provides life insurance policies to individuals.

  59. Diversification - The practice of spreading investments across different assets to reduce risk

  60. Bonds - Debt securities issued by governments or corporations to raise capital

  61. Savings bonds - Bonds issued by the government to encourage saving

  62. Certificate of deposit - A savings certificate with a fixed interest rate and maturity date.

  63. Dow Jones Industrial Average - An index that measures the stock performance of 30 large U.S. companies.

  64. New York Stock Exchange - The largest stock exchange in the world, located in New York City

  65. NASDAQ - A global electronic marketplace for buying and selling securities.

  66. Bull Market - A market condition characterized by rising stock prices

  67. Bear Market - A market condition characterized by falling stock prices.

  68. GDP - Gross Domestic Product, the total value of goods and services produced in a country.

  69. Business cycle - The natural rise and fall of economic growth over time

  70. Great Depression - A severe worldwide economic downturn that occurred in the 1930s

  71. Non-durable good - A product that is consumed quickly and has a short lifespan.

  72. Durable Good - A product that has a long lifespan and can be used repeatedly.

  73. Unemployment - The state of being without a job despite actively seeking work.

  74. Frictional - Unemployment that occurs when people are between jobs or entering the workforce

  75. Structural - Unemployment that occurs when there is a mismatch between skills and job requirements

  76. Cyclical - Unemployment that occurs due to economic downturns or recessions.

  77. Underemployment - When workers are employed below their skill level or in part-time jobs

  78. FICA - Federal Insurance Contributions Act, a tax that funds Social Security and Medicare

  79. Medicare - A federal health insurance program for people aged 65 and older.

  80. Import Tax - A tax imposed on goods brought into a country.

  81. Export Tax - A tax imposed on goods sent out of a country

  82. Entitlement Programs - Government programs that provide benefits to individuals who meet certain eligibility requirements

  83. Inflation - The rate at which the general level of prices for goods and services rises.

  84. Recession - A period of economic decline characterized by reduced trade and industrial activity

  85. Current Account - A component of the balance of payments that includes trade in goods and services, income, and transfers.

  86. Financial Account - A component of the balance of payments that includes investment flows and financial transactions.

  87. Net Exports - The value of a country's exports minus its imports

  88. Exchange rates - The value of one currency in terms of another currency

  89. Currency appreciation - An increase in the value of a currency relative to other currencies.

  90. Currency depreciation - A decrease in the value of a currency relative to other currencies.