Economics Final 11th Grade

Entrepreneurs are important for a strong economy because they create new jobs. By starting and growing their businesses, entrepreneurs generate employment opportunities for others, which helps to reduce unemployment rates and improve the overall economic condition of a country. These new jobs not only provide income for individuals and their families but also contribute to the growth of other sectors in the economy, as increased consumer spending leads to increased demand for goods and services. Additionally, the creation of new jobs by entrepreneurs fosters innovation, productivity, and competition, further driving economic growth and development.

Banks determine whether an individual is eligible for credit by checking their credit history with credit companies. This involves assessing the individual's past financial behavior, such as their repayment history, outstanding debts, and credit utilization. By examining this information, banks can evaluate the individual's creditworthiness and assess the level of risk associated with lending them money. This helps banks make informed decisions regarding credit approvals and determine suitable loan terms and interest rates.

Gross Domestic Product (GDP) is a measure of the total value of all goods and services produced within a country's borders in a specific time period. It is used to gauge the economic performance and growth of a country. The other options, "Great Domestic Performance" and "Great Depression Performance," do not accurately represent the concept of GDP.

Demand refers to the desire or willingness of consumers to purchase a particular good or service. It represents the quantity of a product that consumers are willing and able to buy at a given price and time. The given answer accurately defines demand as the desire to buy a good or service, which aligns with the concept of demand in economics.

Supply refers to the amount of a product or service that a producer is willing to provide. It represents the quantity of goods or services that a producer is willing and able to offer for sale at a given price in a given time period. It is influenced by factors such as production costs, technology, resource availability, and the producer's profit motive. The concept of supply is crucial in understanding market dynamics and determining equilibrium prices and quantities in a market economy.

Scarecity refers to a small inadequate amount of something. It suggests that there is not enough of a particular resource or item available, leading to scarcity or insufficiency. This term implies a limited supply or quantity that is insufficient to meet the demand or needs of individuals or a population.

In an equilibrium, the quantity is at a point where it is equal to both the quantity demanded and the quantity supplied. This means that the market is balanced, with no excess demand or supply. If the demand for a product increases, it will lead to an increase in price, causing the quantity supplied to also increase until it reaches a new equilibrium point. Therefore, the correct answer is that in equilibrium, the quantity is simultaneously equal to both the quantity demanded and quantity supplied.

Inflation refers to the rise in prices of goods and services over time, which results in a decrease in the purchasing power of money. This means that as inflation occurs, the same amount of money can buy fewer goods and services. Therefore, the correct answer is "Rise in Prices and fall in purchasing value of money."

Closed-ended credit refers to a type of loan or credit agreement where there is a specified final payment date. This means that the borrower is required to make regular payments towards the loan until the final payment date, at which point the loan is fully paid off. Unlike open-ended credit, where the borrower can continuously borrow and repay funds, closed-ended credit has a predetermined end date, providing a clear timeline for repayment.

APR stands for Annual Percentage Rate. It is a measure used to calculate the cost of borrowing, including interest and other fees, expressed as an annualized percentage. This rate allows borrowers to compare different loan options and understand the true cost of borrowing over time. The APR takes into account the interest rate as well as any additional costs associated with the loan, such as origination fees or closing costs. By considering the APR, borrowers can make informed decisions about which loan is the most cost-effective for their needs.

A bull is commonly associated with a good market because it symbolizes optimism and upward trends in the stock market. In financial terms, a bull market refers to a period of rising prices and positive investor sentiment. The term "bull" is derived from the animal's charging behavior, which is seen as a metaphor for the market's upward movement. Therefore, choosing a bull as the animal that represents a good market is appropriate and aligns with the commonly accepted understanding in the financial world.

If you buy a stock and its value decreases, you can sell it back for its current value. This means that you will be able to sell the stock for the price it is currently worth in the market.

The law of demand states that as the price of a good or service increases, the quantity demanded decreases. This is because consumers are less willing or able to purchase the good or service at a higher price. Therefore, when the price goes up, the demand for quantity goes down as consumers are less likely to purchase larger quantities of the good or service.

The given answer states that a service/product is elastic if a change in price causes people to buy more or less. This means that when the price of the product/service increases, consumers will buy less of it, and when the price decreases, consumers will buy more of it. This indicates that the demand for the product/service is sensitive to changes in price, making it elastic.

The Federal Reserve is the central bank of the United States. It is responsible for regulating and supervising the country's financial system, conducting monetary policy, and providing banking services to commercial banks and the government. The Federal Reserve plays a crucial role in maintaining the stability and integrity of the US economy by controlling inflation, managing interest rates, and ensuring the smooth functioning of the banking system.

Union members cannot be fired for going on strike. The right to strike is protected by labor laws in many countries, including the United States. Employers are prohibited from retaliating against employees for participating in lawful strikes. This protection is essential to ensure the collective bargaining power of unions and to maintain a fair balance of power between employers and employees. Therefore, the statement that union members can get fired if they go on strike is false.

When the price of a product drops, people are more likely to buy more due to the income and substitute effect. The income effect refers to the increase in purchasing power that individuals experience when the price of a product decreases. This allows them to have more money to spend and afford more of the product. Additionally, the substitute effect suggests that when the price of a product drops, it becomes relatively cheaper compared to other similar products. This encourages people to switch from their usual choices to the cheaper option, leading to an increase in demand.

Adam Smith is known for his significant contribution to modern economic theory. He is considered the father of modern economics due to his influential book "The Wealth of Nations." In this book, Smith discussed the concept of free markets, division of labor, and the invisible hand theory, which states that individuals pursuing their own self-interest can lead to the overall benefit of society. Smith's ideas laid the foundation for classical economics and greatly influenced the development of capitalism and economic policies worldwide.

A stock refers to a share of a company that is owned by an individual or an entity. It represents ownership in the company and gives the shareholder certain rights, such as voting rights and a claim on the company's profits. Stocks are traded on stock exchanges, and their value can fluctuate based on various factors such as the company's performance, market conditions, and investor sentiment. Owning stocks allows investors to participate in the company's growth and potentially earn dividends or sell the shares at a higher price in the future.

If your card is stolen, you are charged $50. This could be a standard fee or penalty for unauthorized transactions made on your stolen card. It is important to report the theft immediately to your bank or credit card company to minimize any financial loss and to protect yourself from further fraudulent activity.

Elasticity refers to how people respond to changes in the price of goods or services. It measures the sensitivity of demand to price changes. If demand is elastic, it means that a small change in price will result in a significant change in demand. On the other hand, if demand is inelastic, it means that changes in price have little impact on demand. Therefore, the correct answer is "How people respond to change in price for goods or service."

The demand for a product or service is determined by the interest and preferences of customers or consumers. The level of demand for a particular product or service depends on how much customers want or need it, and how willing they are to pay for it. Factors such as income and stockbrokers may indirectly influence demand by affecting consumers' purchasing power or investment decisions, but ultimately it is the interest and demand from customers that drives the overall demand for a product or service.

The correct answer is that a debit card removes money directly from a checking account, a charge card requires payment in full each month, and a credit card allows for future payment with interest.

A good credit rating is indicated by a score of 700 or higher. This suggests that the individual has a strong credit history and is likely to be responsible in managing their finances. Lenders and financial institutions generally consider individuals with a credit score of 700 or higher as low-risk borrowers, making it easier for them to obtain loans, credit cards, and other financial products.

The correct answer is "A change in price still results in consumers buying the same amount." This statement suggests that the demand for the product or service remains constant regardless of changes in price. In other words, consumers are not sensitive to price fluctuations and will continue to purchase the same quantity regardless of price changes. This indicates that the product or service is inelastic, as the quantity demanded does not respond to changes in price.

A demand schedule is a table that lists the possible prices of a product or service along with the corresponding quantity that consumers are willing to purchase at each price. It helps in understanding the relationship between price and demand, and allows businesses to make informed decisions about pricing and production levels. By analyzing the demand schedule, companies can determine the optimal price point that maximizes profitability and meets consumer demand.

The Law of Supply states that as the price of a good or service increases, the quantity supplied by producers also increases. This is because higher prices incentivize producers to supply more of the good or service in order to maximize their profits. As a result, the supply curve slopes upward from left to right, indicating a positive relationship between price and quantity supplied.

A tradeoff refers to finding a balance between two desirable but compatible features or options. It involves making a compromise between these features in order to achieve an optimal outcome. In other words, it is the act of giving up one thing in exchange for another, in order to strike a balance between conflicting objectives or priorities. This allows for the optimization of resources and decision-making in various contexts.

The term "Finance Charge" refers to the cost associated with using a credit card. It includes various fees such as interest charges, late payment fees, and annual fees. The finance charge is the amount that the cardholder must pay in addition to the actual amount spent using the credit card. It is calculated based on the Annual Percentage Rate (APR), which represents the yearly cost of borrowing money on the credit card. Therefore, the correct answer "Cost for using Credit Card" accurately describes the finance charge.

Open Ended Credit refers to a type of credit arrangement where there is no fixed deadline or final payment date for the borrower to repay the borrowed amount. Unlike closed-ended credit, which requires the borrower to pay back the loan within a specific time frame, open-ended credit allows the borrower to repay the loan at their own pace, as long as they meet the minimum payment requirements. This flexibility enables the borrower to pay off the debt sometime in the future when they have the financial means to do so.

Congress has the power to coin money because it is stated in the United States Constitution. Article 1, Section 8 grants Congress the authority to regulate commerce and coin money. This power allows Congress to determine the value and type of currency used in the country. The responsibility of coining money is delegated to the United States Mint, which operates under the authority of Congress. Therefore, Congress is the correct answer for this question.

The factors of production are the resources needed to produce goods and services. Stocks, land, capital goods, and labor are all examples of factors of production. Stocks represent financial assets that can be used to generate income, land refers to natural resources and physical space, capital goods are the tools and machinery used in production, and labor refers to the human effort involved in the production process. Therefore, the correct answer is stocks, land, capital goods, and labor.

The correct answer is "Federal Deposit Insurance Corp." The FDIC (Federal Deposit Insurance Corporation) is a United States government corporation that provides deposit insurance to depositors in U.S. commercial banks and savings institutions. It was created in 1933 to restore public confidence in the banking system after the Great Depression. The FDIC insures deposits up to a certain limit per depositor, per insured bank, providing stability and confidence in the banking system.

Suppliers offer cheaper products because not everyone can afford the item and they want to help bring in customers. By offering lower prices, they can attract a wider customer base and make their products more accessible to those who may not have been able to afford them otherwise. This strategy can also help increase sales and generate more revenue for the supplier.

FICA Tax is used to fund Social Security and Medicare programs. These programs provide financial support and healthcare benefits to retired and disabled individuals, as well as medical coverage for individuals over the age of 65. The tax is collected from employees and employers, with a portion of the tax going towards Social Security and another portion going towards Medicare. This tax helps to ensure that these programs have the necessary funds to provide assistance to those who need it.

The Truth in Lending Law is the correct answer because it requires banks to disclose all credit information to consumers. This law ensures that consumers have access to all the necessary information about their credit, such as interest rates, fees, and terms, before entering into any credit agreement. This promotes transparency and helps consumers make informed decisions about their credit. The other options, Credit Card disclosure Law and Credit in Lending Law, do not accurately describe the specific law mentioned in the question.

The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 in a savings account. This means that if a bank fails, the FDIC will reimburse depositors for up to $250,000 per account. This insurance coverage provides protection and helps to maintain confidence in the banking system.

Your credit history will provide banks with information about your job's income. This is important for them to assess your financial stability and ability to repay any loans or credit you may apply for. By knowing your income, banks can determine your creditworthiness and make informed decisions regarding lending you money or extending credit to you.

The sudden change in demand can be caused by various factors. Consumer income plays a significant role as it affects the purchasing power of consumers. If there is a change in consumer income, it can lead to a change in demand for certain goods and services. The number of consumers also influences demand; an increase or decrease in the number of consumers can result in a corresponding change in demand. Consumer taste refers to the preferences and choices of consumers, which can also impact demand. Additionally, the prices of substitutes and complements can affect demand as consumers may switch to alternative products based on their prices. Therefore, all of the mentioned factors can contribute to a sudden change in demand.

The elasticity of a product or service refers to the responsiveness of its demand to changes in various factors. Time limit, portion of income used, and substitutes are all factors that determine the elasticity of a product or service. The time limit refers to the availability of alternatives or substitutes over time. The portion of income used indicates the proportion of a consumer's income that is spent on the product or service, which affects its elasticity. Substitutes are alternative products or services that can be used in place of the original, and their availability also influences elasticity.