ECONOMICS CBE STUDY GUIDE
Resources - Answers- a source of supply, or aid, especially one that can be readily
drawn upon when needed
market economy - Answers- an economic system in which economic decisions and the
pricing of goods and services are guided solely by the aggregate interactions of a
country's citizens and businesses and there is little government intervention or central
planning
consumer rights - Answers- 1) right to safety
2) right to be informed
3) right to choose
4) right to be heard
generic products - Answers- a type of consumer product that lacks a widely recognized
name or logo because it typically isn't advertised
brand name products - Answers- type of consumer product that requires expensive
advertising and good marketing
interest - Answers- money paid regularly at a particular rate for the use of money lent,
or the cost of borrowing
mortgages - Answers- a conveyance of an interest in property as security for the
repayment of money borrowed
financial institutions - Answers- a place in which an above-average amount of financial
business takes place (ex. banks)
finance charges - Answers- any additional fee added to the original amount of a loan
(ex. interest added to a balance, service fees for transactions, late fees, and balance
transfer fees)
federal agencies - Answers- special government organizations set up for a specific
purpose such as the management of resources, financial oversight of industries, or
national security issues
(set up by presidential order)
limited partnership - Answers- two or more partners united to conduct a business jointly,
and in which one or more of the partners is liable only to the extent of the amount of
money that partner invested
e-commerce - Answers- business that is transacted by transferring data electronically,
especially over the Internet
, strike - Answers- engaged in a stoppage of work, services, or other activities, as by
union workers to get better wages
federal reserve - Answers- America's central bank
electronic funds transfer - Answers- the use of telecommunications networks to transfer
funds from one financial institution, as a bank, to another, or to withdraw funds from
one's own account to deposit in a creditor's
reserve requirement - Answers- regulations governing the minimum amount of reserves
that a bank most hold against deposits
bank reserves - Answers- money the bank uses in case of emergency
medicare - Answers- a U.S. government program of hospitalization insurance and
voluntary medical insurance for persons aged 65 and over and for certain disabled
persons under 65
externality - Answers- cost or benefit that affects a party who did not choose to incur
that cost or benefit
inflation - Answers- rate at which the general level of prices for goods/services is rising
and the purchasing power of currency is falling
(gum analogy)
absolute advantage - Answers- a country's ability to produce a certain good more
efficiently than another country
tariff - Answers- tax on goods
chinese economy - Answers- "socialist market economy" to describe their nation's
economic system
industrialization - Answers- the large scale introduction of manufacturing, advanced
technical enterprises, and other productive economic activity into an area, society, or
country
Indonesia economy - Answers- mixed domestic market
multinational corporations - Answers- a corporation with operations in two or more
countries
capitalistic economy - Answers- free market economy and minimal government
intervention
competitive market
Resources - Answers- a source of supply, or aid, especially one that can be readily
drawn upon when needed
market economy - Answers- an economic system in which economic decisions and the
pricing of goods and services are guided solely by the aggregate interactions of a
country's citizens and businesses and there is little government intervention or central
planning
consumer rights - Answers- 1) right to safety
2) right to be informed
3) right to choose
4) right to be heard
generic products - Answers- a type of consumer product that lacks a widely recognized
name or logo because it typically isn't advertised
brand name products - Answers- type of consumer product that requires expensive
advertising and good marketing
interest - Answers- money paid regularly at a particular rate for the use of money lent,
or the cost of borrowing
mortgages - Answers- a conveyance of an interest in property as security for the
repayment of money borrowed
financial institutions - Answers- a place in which an above-average amount of financial
business takes place (ex. banks)
finance charges - Answers- any additional fee added to the original amount of a loan
(ex. interest added to a balance, service fees for transactions, late fees, and balance
transfer fees)
federal agencies - Answers- special government organizations set up for a specific
purpose such as the management of resources, financial oversight of industries, or
national security issues
(set up by presidential order)
limited partnership - Answers- two or more partners united to conduct a business jointly,
and in which one or more of the partners is liable only to the extent of the amount of
money that partner invested
e-commerce - Answers- business that is transacted by transferring data electronically,
especially over the Internet
, strike - Answers- engaged in a stoppage of work, services, or other activities, as by
union workers to get better wages
federal reserve - Answers- America's central bank
electronic funds transfer - Answers- the use of telecommunications networks to transfer
funds from one financial institution, as a bank, to another, or to withdraw funds from
one's own account to deposit in a creditor's
reserve requirement - Answers- regulations governing the minimum amount of reserves
that a bank most hold against deposits
bank reserves - Answers- money the bank uses in case of emergency
medicare - Answers- a U.S. government program of hospitalization insurance and
voluntary medical insurance for persons aged 65 and over and for certain disabled
persons under 65
externality - Answers- cost or benefit that affects a party who did not choose to incur
that cost or benefit
inflation - Answers- rate at which the general level of prices for goods/services is rising
and the purchasing power of currency is falling
(gum analogy)
absolute advantage - Answers- a country's ability to produce a certain good more
efficiently than another country
tariff - Answers- tax on goods
chinese economy - Answers- "socialist market economy" to describe their nation's
economic system
industrialization - Answers- the large scale introduction of manufacturing, advanced
technical enterprises, and other productive economic activity into an area, society, or
country
Indonesia economy - Answers- mixed domestic market
multinational corporations - Answers- a corporation with operations in two or more
countries
capitalistic economy - Answers- free market economy and minimal government
intervention
competitive market
