FINAL EXAM REVIEW GUIDE 2015
Name: ________________________
Word Bank
assets
bear market
bull market
communism
competition
complement
complementary goods
conflict
corporation
economic systems
economics
efficiency
elastic demand
elasticity of supply
entrepreneurs
factors of production
fixed costs
franchise
free market economy
fringe
general partnership
general welfare
guns and butter
increase
inelastic demand
larger
Law of Demand
liability
non-profit
partnership
permanence
personal gain
royalties
royalties
scarcity
sole proprietorship
stockholders
stocks
subsidy
substitute
substitute goods
Substitution
supply schedule
total revenue
trade-off
traditional economy
variable costs
1) _______________ is the study of how people make decisions to satisfy their needs and wants.
2) The use of resources in a way that maximizes output of goods and services is referred to as
_______________
3) You are making a _______________ when you looks at possible alternatives that are rejected
when a choice is made.
4) Limited resources for unlimited needs and wants is _______________.
5) There are several different types of _______________ that society uses to answer the three
economic questions.
6) A political system characterized by a centrally planned economy where all the power in the
economic system is in the hands of the government: _______________
7) Economic system that relies on tradition, habit or custom to answer economic questions.
_______________
8) Making an economic decision that benefits yourself is called _______________
9) Economic system in which economic questions are made by consumers: _______________
10) U.S. governmental intervention in the economy is essential to keep order, provide services and
promote the _______________ of society
11) _______________ includes all the resources for all of a society's goods and services
12) _______________ are people who put land, labor and capital together to create new
businesses.
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FINAL EXAM REVIEW GUIDE 2015
Name: ________________________
13) When a nation must make a decision on focusing on military spending or consumer goods, this
is known in economics as a _______________ decision.
14) _______________ is at the heart of our free market economy, where producers struggle for the
consumer's business.
15) When making an economic decision, this is the economic term for the most desireable
alternative given up as a result of the decision.
16) The _______________ states that the lower the price, the more consumers will buy.
17) According to this rule, a drop in price will _______________ the demand for goods
18) When a change in price causes a dramatic change in demand is: _______________
19) When a change in price does not cause much change in demand: _______________
20) Goods used together are also known as _______________ goods.
21) Goods used in place of one another are called _______________ goods.
22) As the price of a good rises, people will substitute other products is the Law of
_______________
23) Buying shoes and socks, milk and cereal, cell phone and cell phone charger is an example of
_______________. Buying Shop-Rite brand English Muffins when Thomas's English Muffins
goes up in price is biuing _______________.
24) The entire amount a company makes from its sale of goods and services is known as
_______________
25) Costs that do not change no matter how much is produced are _______________
26) Costs that rise or fall depending on the quantity produced are _______________
27) The measurment of the way supply reacts to a change in price is called _______________
28) A chart that lists how much of a good a supplier will supply at different prices is called a
_______________
29) When the government helps to pay and support a business or industry, this is known as a
_______________
30) The Law of Supply dictates that the lower the price, the _______________ the quantity
produced
31) In business ownership, this is a semi-independent company that pays a fee to the parent
company. The parent company offers guidance and proven sales tactics, yet the fees can
sometimes be excessive. McDonalds and Subway are examples of this: _______________
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FINAL EXAM REVIEW GUIDE 2015
Name: ________________________
32) A _______________ is a business that is owned by stockholders and operates as independent
entity, not connected to the owners in terms of taxation and possible legal action.
33) A _______________ is a business where a business is owned and managed by a single person
34) Red Cross, The United Way, The American Cancer Society are all organizations that promote a
benefit to society. Also known as _______________ corporations.
35) A business when all people involved share responsibility and liability: _______________
36) There are advantages and disadvantages to a sole proprietorship. There is no protection for the
owner/manager in the case of liability. The largest disadvantage is the unlimited personal
_______________
37) An advantage to a general _______________ is that all responsibilities for the business are
shared.
38) _______________ are money and other valuables from the operation of a business.
39) A corporation is a business owned by individual _______________
40) Franchises have advantages such as the parent company's guidance, high standards and strict
operating procedures proven to result in success. The largest disadvantage to a franchise
owner is the high _______________ that the parent company charges.
41) A percentage of earnings paid to a franchise are known as _______________
42) Sole proprietorships are the most popular form of business ownership in the United States,
however over 90% of sole proprietorships fail each year which leads to a lack of
_______________
43) _______________ are portions of ownership in a corporation.
44) _______________ benefits are items such as; Google providing their employees with free
lunch, health insurance and paid vacations. Occasionally companies will provide a car for
transportation but it will usually be a inexpensive car. It is rare for a company to give out
expensive items.
45) Partnerships have advantages such as combining resources and skills of partners, however
potential for _______________ is one disadvantage.
46) In the stock market, a _______________ is an increase or rise in the stock prices, while a
_______________ is a decline. Buying stocks in a declining market can be advantageous due
to a lower price, but selling stock is best when prices are higher. Buy low, sell high!
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