Test 1 Flashcards
What is not a resource?
cash
What is not a natural resource?
Machinery
Economics is primarily the study of what?
Choices
Opportunity cost
the loss of potential gain from other alternatives when one alternative is chosen.
Economies of scale
the more you produce the cheaper it is to produce each unit (advantage of a small company rather than a large one)
Micro-economics vs Macro-economics
Micro-eco of just like friends and family, individuals
vs
Macro-eco of the whole economy
What are the three aspects of the economic system
What to produce, how to produce, and who gets it
What is an example of an absolute advantage?
Thailands edible birds nests
What is Fiat money?
Backed by the government
What is an advantage bitcoin has over real money?
Its more anonymous
What is a stock?
Part of the ownership
What is a bond?
A loan
What is early stage financial capital?
Money new companies used to get started
Venture capital firms
Companies that invest in new companies that have potential
What is initial public offering?
First time stocks are publically traded
The situation in which average of all prices or products is called?
Inflation
How does the fed influence inflation?
By increasing interest rates
Who prints money and controls the circulation
Federal reserve
Out of these four things which are one of the things that the federal reserve can not do?
They cant control taxes
When raising money for your startup, what step comes first?
Raising money from family and friends
Which of the following describes establishing the standards of law?
Providing a guidepost for minimally accepted behavior in society
Which of the following describes maintaining order purpose of law?
Providing semlets of peace and calm in society
What is intellectual property?
Ideas you can protect through a patent trademark and copyright
Put in the order of least to most
Legal, ethical, moral
What are the parts of the economic cycle?
Expansion, Peak, Contraction, Trough
Elasticity in prices
measure of the change in the demand for a product in relation to a change in its price.
What makes a product more or less elastic?
If it’s easy to find a substitute product when the price of a product increases, the demand will be more elastic. If there are few or no alternatives, demand will be less elastic.
What is an absolute advantage?
an entity to produce a greater quantity of the same good or service with the same constraints than another entity.
What is a comparative advantage?
an economy’s ability to produce a particular good or service at a lower opportunity cost than its trading partners.
What is a dividend?
a distribution of earnings, by a company to its shareholders in the form of cash or stock reinvestment.
Commodity money
of objects having value or use in themselves (intrinsic value)
Which of the following describes resolving disputes of the standards of law?
the court system
Which of the following describes protecting liberties and rights of the standards of law?
from violations or unreasonable intrusions by persons, organizations, or government.
bribery
the act of giving money, goods, or other forms of compensation to a recipient in exchange for an alteration of their behavior that the recipient would otherwise not alter
Kickback
a form of negotiated bribery in which a commission is paid to the bribe-taker in exchange for services rendered.
conflict of interest
an individual or organization is involved in multiple interests that are at odds with one another.
Whistleblower
a person who exposes any kind of information or activity that is deemed illegal, unethical
Corporate responsibility
the ethical role of the corporation in society.
