| A | B |
|---|
| substitutes | products that can be used on place of other products are called |
| law of suply | an economic principle stating that the quantity supplied varies directly with its price is |
| law of demand | the demand for and economic product baries inversely with its prise is the |
| subsity | a government payment ot an individual, bisiness, or other group to encourage or protect a certain type of economic activity is a |
| prices | signals that convey information to buyers and sellers in a market are |
| ration cupon | a ticket that entitles a holder to pruchase a certain amout of a product is a |
| in a market economy, a high price is | a signal for producers to produce more and buyers to buy less |
| prices are links between | producers and consumers. |
| How does the demand curv respond to an increase in demand? | The curve shifts to the right |
| A franchise | gives a company exclusive right to do business in an area |
| a patent | provides government protection to investors |
| capitalism is based on | the theory of Laissez-faire |
| resourse immobility is an | obstacle to efficient resourse allocation |
| competition is a | condition needed for the success of a competitive market |
| regulation z | requires truth in lending disclosures |
| the FTC was established to | regulate interstate commerce |
| a balance sheet | is a bank statement of assets and liabilities |
| The Federal Reserve System | is the Nation's cental bank |
| low interest rates and an ample money supply | reflect an easy money policy |
| the availability of money and cost of credit are | decided by the Federal Open Market Committe |
| the 7 member federal reserve board of governors is | appointed by the president |
| a certificate of deposite | is and interest bearing loan to a bank |
| to make a profit, a bank must | charge more for the loans it makes that it pays on deposits |
| a tight money policy | restricts the growth of the money supply |
| Intermediate products are | products used in making another product |
| the cost of intermediate products is | included in the final cost of a produdct |
| GDP is the | total output of all final goods produced in a country in one year |
| to live within one's income, a person | can only spend disposable income |
| durable goods include | such house hold items as stoves and refrigerators (goods that last longer than 5 years) |
| the Census | is taken every ten yrs. |
| the foreign sector the the economy represents | the sum total of value of exports and imports |
| since 1960, the Census | shows a trent toward smaller households |
| the worst depression in the history of the US | took place in the 1930's just before World War II |
| real GDP | a fairly satisfactory gauge that measures economic growth in the short term is |
| capital goods | refer to equipmant workers use on a job |
