Economics Semester Test

No government influence in the economy best describes this

Among the ways to maintain a good credit rating, which one of the following is NOT true

More than one producer of good/services insures choice is the best definition of

The amount of goods available best describes what?

A home mortgage is an example of an installment loan

Collateral is something of value risked by a borrower. This guarantees the borrower will repay his debt

FDIC insures customers’ deposits up to $300,000.

____________________ is a government payment that supports a business or market. An example of this would be when a farmer is paid to NOT grow a particular crop.

_______________ are issued by state or local governments to finance such improvements as highways, state buildings, libraries, and schools.

_______is the condition in which human wants are always greater than the available supply of time, goods, and resources.

Liquidity is the money an investor receives above and beyond the sum of money initially invested

In a Free Market situation, who determines wages of employees?

A share of stock represents a portion of ownership in a corporation.

Individuals are driven by a desire to profit (make money) best describes what economic principal?

When a producer of a popular product introduces a hot, new product, who ultimately determines the products' success?

Dividends, which are portions of a corporation’s profits, are paid out to stockholders of many corporations. The higher the corporate profit, the higher the dividend.

Currency is anything that serves as a medium of exchange, a unit of account, and a store of value.

__________________ is the full cost of not choosing the next best alternative. An example of this is choosing to watch a television program the night before a test rather than study. The benefit was the entertainment from the television program. The result was a lower grade due to failure to study for the test.

__________________ is when consumers react to an increase in a good’s price by consuming less of one good and more of other goods. An example of this would be choosing a Coke over Pepsi

___________ is a person who chooses not to pay for a good or service but who benefits from it when it is provided

When prices are lower, consumers will buy more; When prices are higher, consumers will buy less. This is the best definition of

Investment is

The American dollar is backed by gold and silver

Economic questions are answered by habits and customs (the way it has always been done) best describes which type of economy?

The person who agrees to be responsible for loan payments if the borrower fails to make them is known as the