Unit III Vocab 1 - Economics / Regulatory

Question 1

What is Consumer Price Index?

Answer 1

A measure of average change over time in the prices paid by consumers for market basket of consumer goods and services

Question 2

What is Unemployment Rate?

Answer 2

Represents the number of unemployed people as a percentage of the labor force

Question 3

What is Debt?

Answer 3

A financial liability or obligation owed by one person, the debtor, to another, the creditor

Question 4

What are Taxes?

Answer 4

Mandatory contributions levied on all individuals/corporations by a government entity

Question 5

What is the Federal Reserve?

Answer 5

The central bank of the United States which provides the nation with a safe, flexible, and stable financial system

Question 6

What is Fiscal Policy?

Answer 6

The use of government spending/tax policies to influence economic conditions

Question 7

What is Reserve Requirement?

Answer 7

The amount of funds that a bank holds in reserve to ensure that it is able to meet liabilities in case of sudden withdrawals

Question 8

What is a Recession?

Answer 8

A sustained period of weak or negative growth in real GPA, accompanied by a significant rise in unemployment rate

Question 9

What is Budget?

Answer 9

A spending plan based on income and expenses

Question 10

What are Economic Goals?

Answer 10

The interconnected production, consumption, and trade activities that facilitate resource management of a nation/organization

Question 11

What is a Market Failure?

Answer 11

A situation defined by an inefficient distribution of goods and services in the free market (Supply/demand dysfunction)

Question 12

What is Consumer Spending?

Answer 12

The total money spent on final goods and services by consumer individuals and households

Question 13

What is Gross Domestic Product (GDP)?

Answer 13

The total value of goods produced, and services provided in a nation during one (fiscal) year

Question 14

What is Inflation?

Answer 14

The overall general upward price movement of goods and services in a country

Question 15

What is a Deficit?

Answer 15

The amount by which something, especially a sum of money, is too small/does not meet requirements

Question 16

What is the Business Cycle?

Answer 16

A type of fluctuation found in the aggregate economic activity of a nation

Question 17

What is a Monetary Policy?

Answer 17

A set of actions to control a nation’s overall money supply and achieve economic growth

Question 18

What is Discount Rate?

Answer 18

The interest rate used to determine the present value of future cash flows in a discounted cash flow (DCF) analysis

Question 19

What are Open Market Operations?

Answer 19

Buying and selling U.S Treasury secretaries, along with other securities on the open market in order to manage the money supply

Question 20

What is an Economic Depression?

Answer 20

An extreme recession that lasts three or more years which leads to a decline in real GDP

Question 21

What is Circular Flow?

Answer 21

The unending flow of the production of goods and services, income, and expenditure in an economy

Question 22

What is the Environmental Protection Agency (EPA)?

Answer 22

Independent executive agency of the U.S federal government tasked with environment protection matters

Question 23

What is the Federal Trade Commission (FTC)?

Answer 23

Independent executive agency of the U.S federal government tasked with the enforcement of civil antitrust law and the promotion of consumer protection

Question 24

What is the Federal Aviation Administration (FAA)?

Answer 24

Independent executive agency of the U.S federal government tasked with issuing and enforcing regulations/minimum standards covering manufacturing, operating, and maintaining aircraft

Question 25

What is a Regulatory Agency?

Answer 25

Independent agencies of the U.S government who exercise autonomous dominion over some areas of human activity in licensing and regulating

Question 26

What is the Food and Drug Administration (FDA)?

Answer 26

Independent executive agency of the U.S federal government tasked with protecting and promoting public health through the control and supervision of food safety, tobacco/caffeine products, etc.

Question 27

What is the Federal Communications Commission (FCC)?

Answer 27

Independent executive agency of the U.S federal government tasked with regulating communications by radio, television, wire, satellite, and cable across the U.S

Question 28

What is the Securities Exchange Commission (SEC)?

Answer 28

Independent executive agency of the U.S federal government tasked with enforcing laws against market manipulation

Question 29

What is Net Neutrality?

Answer 29

The principle that an internet service provider (ISP) has to provide access to all sites, content, and apps at the same speed and conditions without preference to any content

Question 30

What is Regulation?

Answer 30

The management of complex systems according to a set of rules and trends

Question 31

What is the National Labor Relations Board?

Answer 31

Independent executive agency of the U.S federal government tasked with protecting the rights of private sector employees to join together

Question 32

What is the Occupational Safety and Health Administration?

Answer 32

Independent executive agency of the U.S federal government tasked with assuring safe and healthful working conditions by setting/enforcing standards