Download Business Economics Final Exam Study Guide Vocabulary words

Business Economics Final Exam Study Guide
Vocabulary words
wage, disposable income, budget, liquidity, rate of return
enterprise, stock, sole proprietorship, partnership, corporation
franchise, initial public offering, dividend, venture capitalists, yield
balance sheet, asset, retained earnings net worth, income statement
Gross Domestic Product (GDP), real GDP, real per capita GDP, productivity, nominal GDP
fixed costs, variable costs, marginal costs, law of diminishing marginal returns, economies of
scale
marginal analysis, marginal revenue, total revenue, derived demand, labor force
job discrimination, labor union, collective bargaining, grievance, seniority
injunction, lockout, picketing, union shop, strike
perfect competition, pure monopoly, monopolistic competition, oligopoly, concentration ratio
collusion, price fixing, vertical merger, horizontal merger, joint venture
externality, predatory pricing, fiscal policy, monetary policy, public good
benefits-received principal, ability-to-pay principal, proportional tax, progressive tax, regressive
tax
money supply, demand deposits, fractional reserve banking, deposit multiplier, Federal Reserve
System
recovery, demand-pull inflation, cost-push inflation, business cycles, recession
purchasing power, durable good, Consumer Price Index (CPI), constant dollars, unemployment
rate
Multiple choice question topics
interest
transfer payment
risk and loan terms
real vs. nominal interest rates
liquidity of financial products
partnerships
not-for-profit corporation
advantage of operating a business as a sole proprietorship
disadvantage of both partnerships and proprietorships
corporations
common stockholders of a publicly owned corporation affect the management of the corporation
examples of financial institutions
Securities and Exchange Commission
line of credit
corporate bond
savings into share of stock
balance sheet, income statement, prospectus
division of labor
when total cost exceeds total revenues
investments in human capital
losses are the financial incentive that persuade entrepreneurs to?
ways to increase the likelihood of wage increases
an increase in productivity affects a nation’s standard of living because
consumers are affected by government regulations that increase entrepreneur costs of production
if a business wants to maximize profits
if the minimum wage is set too high
income differences
explain why a computer database designer is likely to have greater earning potential than a
technician who repairs typewriters
opposition to increasing minimum wage
a non-market force affecting wages
explain why jobs in the service industry often pay lower wages than jobs in other industries
pure competition
outcomes when all the businesses in an industry are able to limit competition among one another
purpose of a cartel
result of collusion
non-price competition
oligopolies
when government spending exceeds government revenues
the traditional role of the federal government
Social Security and Medicare systems
effort made by the United States government to ensure fair competition in the marketplace
services regulated and/or operated with help from the government
likely result when the U.S. government borrows money to increase its spending
progressive, proportional, regressive taxes
effects of inflation on salaries
functions of money
the Federal Open Market Committee
the money supply increases when?
what would most likely be implemented to encourage consumer spending for major purchases
cost-push inflation
M1 money
calculations of a country’s gross domestic product
actions that would be part of a nation’s monetary policy aimed at stimulating growth and
reducing unemployment
unemployment in the United States
fiscal policy aimed at slowing the growth of the U.S. economy
a monetary policy tool used to influence the money supply
actions that would most likely slow the economy during a period of rapid growth & inflation
fiscal policies that would be implemented during a period of rapidly increasing inflation
differences between structural, frictional, seasonal, cyclical and voluntary unemployment
the Federal Reserve would most likely raise the discount rate to do ?
who makes up the labor force?
characteristics of the business cycle and its phases
why governments use tax reductions?
what does the CPI measures?
to counteract the effects of inflation, the U.S. government would??
what takes place during the early phases of an economic expansion?
reserve ratio