Economics Final Exam Review

inverse relationship (price up, demand down or price down, demand up)

direct relationship (price up, demand up or price down, demand down)

price at which buyer and seller are both happy

for each use of a product, the level of satisfaction/usefulness decreases

product priced below equilibrium price

product priced above equilibrium price

Revenue-Expenses (what gets people out of bed in the morning)

lack of a product = value

what is sacrificed with a decision

a share in a company

an “I-owe-you” from the government

a group of stocks in one investment, which reduces risk

return on investment

fancy word for money

no government intervention

demand goes up in a good economy (Oreos/the real deal)

demand goes up in a bad economy (Creme-Betweens/off-brand products)

central bank that controls interest rates

the amount of money a person pays for the privilege of borrowing money

the study of CHOICES with limited resources

the study of INDIVIDUAL choices

the study of larger economics (nations)

risk-taker who seeks profit

Gross Domestic Product…total economic output of a nation

two consecutive quarters of negative economic growth

workers/workforce

retirement plan that taxes on the back end

retirement plan that taxes on the front end

Dave Ramsey advice on how to become wealthy

home loan

C. consumers will substitute other products for the one whose price has risen

C. a change in the price of K (price does not shift demand, but it changes the quantity demanded)

B. a reduction in the price of cattle feed (price change does not shift demand curve itself, but it moves along the demand curve)

C. shift to the right

B. mass production economies are associated with larger levels of output

A. $1.00 and 200

E. a shortage of 100 units

B. A only

C. C only