Economics Final Exam Review

Front

a stock or document that represents a claim on the income and property of the borrower; CDs, bonds, Treasury bills, mortgages

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financial asset

Front

productive resources that make up the four categories of land, capital, labor, and entrepreneurship

Back

factors of production

Front

economic and political system in which factors of production are collectively owned and directed by the state; theoretically classless society in which every one works for the common good

Back

communism

Front

products that increase the use of other products; products related in such a way that an increase in the price of one reduces the demand for both

Back

complements

Front

proportional tax on individual income after a specified threshold has been reached

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flat tax

Front

formal contract to repay borrowed money and interest on the borrowed money at regular future intervals

Back

bond

Front

dollar value of all final goods, services, and structures produced within a country’s national borders during a one-year period

Back

Gross Domestic Product (GDP)

Front

rise in the general level of prices

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inflation

Front

that portion of a change in quantity demanded caused by a change in a consumer’s real income when the price of a product changes

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income effect

Front

branch of Treasury Department that collects taxes

Back

Internal Revenue Service