5 Written Questions

1. economic side effect that affects an uninvolved third party
2. type of elasticity where the percentage change in the independent variable (usually price) casues a more than proportionate change in the dependent variable (usually quantity demanded or supplied)
3. graph showing the quantity demanded at each and every possible price that might prevail in the market at any given time
4. state of the economy with large numbers of unemployed, declining real incomes, overcapacity in manufacturing, general economic hardships
5. economic activities in one part of the country or world affect what happens elsewhere

5 Matching Questions

1. excise tax
2. default
3. deregulation
4. economic model
5. embargo

1. a prohibition on the export or import of a product
2. b general revenue tax levied on the manufac ture or sale of selected items
3. c the act of not repaying borrowed money
4. d set of assumptions in a table, graph, or equations used to describe or explain economic behaviors
5. e relaxation or removal of government regulations on business activities

5 Multiple Choice Questions

1. risk-taking induvidual in search of profits;one of four factors of production
   1. entrepreneur
   2. depression
   3. externality
   4. creditor
2. gradual wear on capital goods during production
   1. deflation
   2. deregulation
   3. depression
   4. depreciation
3. spending for federal programs that must recieve annual authorization
   1. discretionary spending
   2. deficient spending
   3. easy money policy
   4. distribution of income
4. stage of production where output increases at a decreasing rate as more units of variable input are added
   1. diminishing returns
   2. demand curve
   3. deficient spending
   4. discount rate
5. single currency of European Union
   1. euro
   2. exports
   3. default
   4. embargo

5 True/False Questions

1. equilibrium price → interest rate that the federal reserve system charges on loans to the nation's financial institution

   True        False

2. double taxation → feature of taxation that allows stockholders dividends to be taxed both as corporate profit and as personal income

   True        False

3. credit union → non profit service cooperative that accepts deposits, makes loans, and provides other financial services

   True        False

4. distribution of income → division of work into a number of seperate tasks to be performed by different workers; same as specialization

   True        False

5. elasticity → type of elasticity where the percentage change in the independent variable (usually price) casues a more than proportionate change in the dependent variable (usually quantity demanded or supplied)

   True        False