economics test 1

Question 1

mercantilism

Answer 1

economy growing from the top down. and government encourages and assists businessmen in establishing colonial outposts

Question 2

oikonomos

Answer 2

the word economics comes from and means steward

Question 3

tariffs

Answer 3

tax on imported goods

Question 4

goods

Answer 4

tangible items companies produce

Question 5

services

Answer 5

intangible duties that people perform to pay

Question 6

cost benefit analysis

Answer 6

determining the cost and the benefit of taking a particular step before you take it to determine if the benefit outweighs the cost

Question 7

margin

Answer 7

small step that makes a big difference in the action being taken “the next one”

Question 8

opportunity cost

Answer 8

the real cost of doing or making one thing includes the cost of not doing or making something else.

Question 9

supply-side economics

Answer 9

Ronald Regan- economic growth can be best achieved by increasing the supply of goods and services through policies like lower taxes and free trade

Question 10

monasteries

Answer 10

people called monks gathered in monasteries to practice living isolated and only prayer and fasting

Question 11

incentive

Answer 11

a benefit that motivates an action (most common is reduction in price)

Question 12

microeconomics

Answer 12

small pictures. how individual households and companies make decisions and how buyers and sellers interact in the market

Question 13

macroeconomics

Answer 13

big picture, economy as a whole. EX. GDP, rate of inflation

Question 14

When was the Federal Reserve system established. Who established it?

Answer 14

1913 and congress

Question 15

How did the first believers in Jerusalem view their possessions

Answer 15

property

Question 16

how is money used in the US

Answer 16

as an agreed upon medium of exchange

Question 17

GDP

Answer 17

gross domestic product

Question 18

what was the primary standard of wealth in the English colonies of america

Answer 18

land

Question 19

when did medicare begin?

Answer 19

1960s

Question 20

what waterway enabled new york city to become America’s financial center

Answer 20

Erie canal

Question 21

what source of credit encouraged Americans to spend more?

Answer 21

credit cards

Question 22

what was the effect of the embargo act?

Answer 22

serious loss of trade

Question 23

what was the first national bank of the united states called?

Answer 23

Bank of the United States

Question 24

what is a bond?

Answer 24

Money individuals loan to an entity ( often the government)

Question 25

what was the dot com boom

Answer 25

Made it possible for people to become millionaires quickly in the 1990's

Question 26

what does investment capitalism mean?

Answer 26

A type of business in which people build large enterprises that do not make money themselves, but invest huge sums of money in companies that do ( involves investing money to make a profit)

Question 27

what was the first business in the US that grew greatly after the civil war

Answer 27

railroads

Question 28

what cotton invention spurred economic growth in the south

Answer 28

cotton gin

Question 29

according to weber, what 4 prospects of protestant thought influenced the development of capitalism

Answer 29

the idea of seeing one's vocation in life, not just service within the Church, as a calling 2. the belief that discipline and hard work, which led to making money, were legitimate ways to honor God and to fulfill one's calling 3. the rejection of personal luxury and to invest their profits in further growth of their businesses 4. the worth of the individual, which led to greater economic activity