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64 Cards in this Set
- Front
- Back
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Define goods |
Things that you can see and touch |
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Name and describe the three economic resources |
Natural resources- materials supplied by nature Human resources- people who produce goods and services Capital resources- buildings, equipment, and supplies |
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Define trade off |
When you give up something to have something else |
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Name the steps in the decision making process |
Define problem Identify choices Evaluate disadvantages and advantages Choose one Act on choice Reciew decision |
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Name and describe the three economic systems |
Command economy- resources owned and controlled by the government Market economy- resources are owned by the people Traditional economy-trading |
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Another name for the US economic system |
Capitalism |
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The US economic system is based on what four principles? |
Private property Freedom of choice Profit Competition |
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Define the right of private property |
Private property means you can own use or dispose things of value. |
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Describe supply and demand |
Supply is how much of a good a business is willing to supply Demand is how much a consumer is willing to buy |
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Define GDP |
The total dollar value of all final goods and services produced in one year |
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In the 1890's the average employee in the US worked how many hours? |
60 hours |
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Define productivity |
The production output of a worker |
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Define retail sales |
The sales of durable or non durable goods bought by consumers |
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Name the four phases of the business cycle |
Prosperity Recession Depression Recovery |
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If GDP growth slows for at least __ quarters in a tear, the economy is probably in a recession |
2 |
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The drop in related business is called |
Recession |
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Define inflation |
Increase in the general level of prices |
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Define prime rate |
The interest rate banks charge their best customers |
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The major influence on the level of interest rates is ...... |
The supply and demand for money |
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Define capital project |
Spending by businesses for items such as land, buildings, equipment, and new products |
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If you purchase a corporate or government bond you are a ..... |
Creditor |
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Define domestic business |
The making, buying and selling of goods |
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The US conducts trade with over ____ countries |
180 |
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Define absolute advantage |
When a country can produce goods at a lower price than other countries |
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1 out of __ US jobs depend on international business |
6 |
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Define balance of payments |
The difference between the amount of money that comes into a country and the amount that goes out |
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Name the main cultural and social factors that affect international business |
Geography, cultural influences, declvelopment, and political and legal concerns |
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The key effects on a country's level of economic development are... |
Literacy levels Technology Agricultural dependency |
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Define tariff |
A tax that a government places on certain imported products |
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Define quota |
Limit on how much of a certain good can be imported or exported |
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What is a free trade zone? |
A selected area where products can be imported |
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What are common markets |
A market where they let companies invest in them |
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Define a host country |
The country which the MNC places business activities |
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Define licensing |
Selling the right to use intangible property |
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What are the goals of the world trade organization |
Lower tariffs Eliminating import quotas Reducing barriers for banks Assisting poor countries |
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What organization was founded in 1944 to provide loans to help rebuild after world war 2 |
The world bank |
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What are examples of non renewable resources |
Gas, oil, and minerals |
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The age discrimination act protects all people aged ___ and over |
40 |
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Define ethics |
Principles of morality |
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Define code of ethics |
Set of rules for guiding the actions of employees |
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When considering the ethics of business situations what guidelines should you follow? |
Is it legal Who is affected Does it violate company standards |
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What are the roles of the government |
Provide services Protect citizens Regulate utilities Provide information Buying goods Hiring employees Raising revenue |
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In the US police and fire protection is usually provided by what government |
Local |
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Name the elements of a contract |
Agreement Competent parties Consideration Legality |
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A patent gives ownership to an inventor for how many years |
20 |
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Define monopoly |
When a business has control of the market for a product |
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Antitrust laws prevent unfair business practices such as |
False advertising Deceptive pricing Misleading labeling |
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In the US total government purchases make up about ____ of all goods and services the country produces |
20% |
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Financial planning experts encourage people to deposit ___ of their income into savings |
10% |
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Define interest |
The money you receive for letting other people use your money |
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Define money market account |
Pays variable interest rate based on various government and corporate securities |
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Provide examples of commodities |
Grain, livestock, precious metals, currency |
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What are the four main factors you should consider when investing your money |
Safety and risk Potential return Liquidity Taxss |
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Common stockholders receive dividends..... |
Only after preffered stock holders are paid their dividends |
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Define stock exchange |
Organization that accommodates the buying and selling of securities |
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The relationship between a stocks selling price and it's earnings per share is called the... |
The price earnings ratio |
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Municipal bonds are issued by ____ and ________ governments |
Local and state |
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A _____ ______ bond bought at half it's value |
EE bond |
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This debt security involves short term borrowing with maturites from 91 days to one year is known as a ... |
T Bill |
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This type of mutual fund invests in both stocks and bonds is known as ... |
Balanced funds |
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Interest is paid to a bondholder based on the bonds _________ and __________ |
Maturity rate and face value |
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Mortgage payments are usually_______ term loans that require monthly payments |
Long |
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Define appraiser |
Someone who determines the value of something |
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The Dow Jones industrial average is a commonly reported... |
Stock index |
