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Economics Honors UNIT 3 Test Review: 100 multiple-choice questions. Know these terms:


macroeconomics civilian labor force union strike boycott

lockout Great Depression right-to-work law closed shop union shop

grievance procedure mediation arbitration fact-finding injunction

seizure unskilled labor skilled labor professional labor

wage rate traditional theory of wage determination equilibrium wage rate

theory of negotiated wages seniority labor mobility giveback

glass ceiling comparable worth current dollars real or constant dollars


sin tax tax loophole benefit principle of taxation ability-to-pay proportional tax

progressive tax average tax rate marginal tax rate regressive tax income tax

Internal Revenue Service (IRS) tax return indexing FICA

medicare corporate income tax excise tax luxury good estate tax

gift tax customs duty sales tax property tax real property

tax assessor value added tax (VAT)


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



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


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


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