Economics Final Exam Review

Economics Final Exam Review
1. The value of the next best alternative is the ________________________.
2. A company’s office building is an example of ___________________.
3. A cow is an example of _______________________.
4. A __________________ is someone who starts a new business.
5. Adam Smith’s “invisible hand” refers to the role of the _________________.
6. According to Adam Smith, ______________ should not interfere in the marketplace.
7. A major characteristic of a pure market economy is unrestricted ________________.
8. It is easier to start your own business is a ______________ economy.
9. The word ____________ means fairness.
10. Name one country that has a command economy.
11. Every purchase decision involves the use of two scarce resources, _________ and __________.
12. “Bait and switch” is an example of ______________ advertising.
13. A promise to repair or replace a faulty product with a certain time is a ____________.
14. The money people have left over after they have paid their taxes is called
____________________ income.
15. A financial institution that is owned and operated by members to provide savings accounts and
low interest loans is a __________ ___________.
16. According to the law of demand, when the price of an item goes up, the quantity demanded
17. According to the law of supply, higher prices prompt producers to produce ___________.
18. When the price of a good is too high, consumers look for _______________.
19. The quantity demanded of a product is affected by _______________.
20. The law of _______________ ______________ states that the more you have of something,
the less satisfaction you will get from an additional unit.
21. A _________ ___________ is a temporary partnership.
22. One advantage of an _____________ is more stable prices.
23. The four Ps of ______________ include product, promotion, and place.
24. The purpose of ______________ is to convince consumers that a certain product will add to
their utility.
25. The largest one- day point drop in the Dow-Jones Industrial Average took place in ________.