Economics Study Notes: Key Concepts and Definitions, Exams of Nursing

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Economics Final Exam Question & Answers ( Graded A+) Economics - Correct answer s ✅the study of how people seek to satisfy their needs and wants by making choices Horizontal Merger - Correct answer s ✅the combination of two or more firms competing in the same market with the same good or service Vertical Merger - Correct answer s ✅the combination of two or more firms involved in different stages of producing the same good or service Shortage - Correct answer s ✅a situation in which a good or service is unavailable Scarcity - Correct answer s ✅limited quantities of resources to meet unlimited wants Factors of Production - Correct answer s ✅land, labor, and capital; the three groups of resources that are used to make all goods and services Entrepreneur - Correct answer s ✅ambitious leader who combines land, labor, and capital to create and market new goods or services Trade-Off - Correct answer s ✅the alternative we sacrifice when we make a decision Opportunity Cost - Correct answer s ✅the most desirable alternative given up as the result of a decision Economics Final Exam Question & Answers ( Graded A+) Human Capital - Correct answer s ✅the skills and knowledge gained by a worker through education and experience Physical Capital - Correct answer s ✅all human-made goods that are used to produce other goods and services; tools and buildings Thinking at the Margin - Correct answer s ✅deciding whether to do or use one additional unit of some resource Production Possibility Graph - Correct answer s ✅a graph that shows alternative ways to use an economy's resources Production Possibility Frontier - Correct answer s ✅the line on a production possibilities graph that shows the maximum possible output for a specific economy Adam Smith - Correct answer s ✅classic economist that believed the market could regulate itself Classical Economics - Correct answer s ✅the idea that free markets can regulate themselves Free Market - Correct answer s ✅individuals and privately owned businesses own the factors of production and therefore, make what they want and buy what they want Economics Final Exam Question & Answers ( Graded A+) Inferior Goods - Correct answer s ✅a good that consumers demand less of when their income increases Elasticity of Supply - Correct answer s ✅a measure of the way quantity supplied reacts to a change in price Elasticity of Demand - Correct answer s ✅a measure of how consumers react to a change in price Import Restrictions - Correct answer s ✅restrictions imposed by a country that affect the supply of a good or service Price Ceiling - Correct answer s ✅a maximum price that can legally charged for a good or service Price Floor - Correct answer s ✅a minimum price for a good or service Rationing - Correct answer s ✅a system of allocating scarce goods and services using criteria other than price Skilled Labor - Correct answer s ✅labor that required specialized skills and education Semi-skilled Labor - Correct answer s ✅labor that requires minimal specialized skills and education Economics Final Exam Question & Answers ( Graded A+) Unskilled Labor - Correct answer s ✅labor that requires no specialized skills, education, or training Collective Bargaining - Correct answer s ✅the process in which union and company representatives meet to negotiate a new labor contract Labor Union - Correct answer s ✅an organization of workers that tries to improve working conditions, wages, and benefits for its members Wagner Act - Correct answer s ✅1935, also National Labor Relations Act; granted rights to unions; allowed collective bargaining Price - Correct answer s ✅the high value or worth of something Law of Diminishing Marginal Utility - Correct answer s ✅a general decrease in the utility of a product, as more units of it are consumed Tax - Correct answer s ✅a required payment to a local, state, or national government Proportional Tax - Correct answer s ✅a tax for which the percentage of income paid in taxes remains the same for all income levels Progressive Tax - Correct answer s ✅a tax for which the percentage of income paid in taxes increases as income increases Economics Final Exam Question & Answers ( Graded A+) Regressive Tax - Correct answer s ✅a tax for which the percentage of income paid in taxes decreases as income increases Characteristics of a Good Tax - Correct answer s ✅simplicity, efficiency, certainty, and equity Federal Income Tax - Correct answer s ✅a payroll deduction collected by employers by law and sent to the federal government to support governmental programs FICA - Correct answer s ✅taxes that fund Social Security and Medicare Medicaid - Correct answer s ✅entitlement program that benefits low-income families, some people with disabilities, and elderly people in nursing homes Medicare - Correct answer s ✅a national health insurance program that helps pay for health care for people over age 65 or with certain disabilities Representative Money - Correct answer s ✅objects that have value because the holder can exchange them for something else of value Functions of money - Correct answer s ✅medium of exchange, unit of account, and store of value FDIC - Correct answer s ✅the government agency that insures customer deposits if a bank fails