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
entitlement
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
capital-intensive