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