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Economics Honors Final Exam Review (Chapters 10-19): 135 multiple-choice questions. Know these terms


10 - per capita public sector private sector transfer payment grant-in-aid

distribution of income federal budget fiscal year budget deficit medicaid

appropriations bill balanced budget amendment deficit spending federal debt

trust fund Gross Domestic Product (GDP) crowding-out effect balanced budget



11 - barter economy money medium of exchange measure of value store of value

commodity money fiat money bullion monetary unit state bank

monetary standard wildcat bank legal tender National Banking System

national bank national currency gold certificate silver certificate

gold standard dual banking system Federal Reserve System

central bank bank holiday run on the bank commercial bank thrift institution

demand deposit account savings bank savings and loan association

deregulation Regulation Q


12 - member bank bank holding company truth-in-lending laws

Regulation Z currency

coins margin requirement monetary policy reserve requirement

legal reserves liabilities assets balance sheet net worth

excess reserves liquidity certificate of deposit (CD) savings account

time deposit easy money policy tight money policy open market operations

discount rate collateral moral suasion prime rate M1

quantity theory of money problem bank list creditor M2


13- saving savings financial system financial asset financial intermediary

nonbank financial institution finance company bill consolidation loan

premium mutual fund pension real estate investment trust

risk coupon maturity par value current yield

junk bond municipal bond tax-exempt savings bond capital market

Treasury bill, note & bond Individual Retirement Account (IRA) money market

primary market secondary market equities diversification

stockbroker securities exchange Dow Jones Industrial Average S&P 500

spot market futures futures market option call option

put option options market


14- national income accounting structures intermediate products secondhand sales national income

nonmarket transactions underground economy Gross National Product (GNP)

personal income retained earnings disposable personal income

household family personal consumption expenditures price index

market basket consumer price index producer price index current GDP

nominal GDP real GDP GDP in constant dollars


15- census urban population rural population demographer fertility rate

life expectancy net immigration baby boom real GDP per capita tax base

standard of living renewable resources capital-to-labor ratio labor productivity business cycle

business fluctuation recession peak trough expansion

trend line depression index of leading indicators


16- unemployed unemployment rate frictional unemployment structural unemployment

cyclical unemployment seasonal unemployment technological unemployment

automation full employment price level deflation creeping inflation

galloping inflation hyperinflation Lorenz curve blue-collar worker

white-collar worker poverty threshold income-to-poverty ratio welfare

food stamps negative income tax enterprise zone workfare


17- stagflation GDP gap misery index discomfort index aggregate supply curve

aggregate demand curve macroeconomic equilibrium fiscal policy

Keynesian economics consumption function multiplier accelerator

Automatic stabilizer unemployment insurance supply-side economics

Laffer curve monetarism wage-price controls Council of Economic Advisors

18- absolute advantage comparative advantage tariff quota protectionist

infant industries argument balance of payments trade deficit

most favored nation clause General Agreement on Tariffs & Trade (GATT)

North American Free Trade Agreement (NAFTA) World Trade Organization (WTO)

foreign exchange foreign exchange market foreign exchange rate fixed exchange rate

devaluation floating exchange rate flexible exchange rate


19 - socialism communism Five-Year Plan collectivization Gosplan

state farm collective farm piecework storming perestroika

privatization Solidarity black market Great Leap Forward keiretsu