Econ test 1 review

Definition of economics

Scarcity

Value

Role of government in economics

            Liberty

            Security

            Property

            Contracts

4 basic questions all economics systems must answer

enterpreneur

the factors (means) of production

land,

labor,

capital,

entrepreneurial activity

types of economic systems

            traditional

            command

            market

            mixed or limited free market

technology

products—goods and services

law of supply

law of demand

equilibrium

market clearing price

graphing

interaction of supply, demand laws

standard of living

opportunity costs

substitutes

complements

factors that affect supply, demand

elasticity

ceteris parabus

caveat emptor

elasticity of supply, demand

market conditions:

shortage, surplus, price hike, price cut (sale)

trade offs

tombstone

Stock certificate

Stock splits

Dividends

Underwriters

Commission

Unlimited v. limited liability

Unlimited “life”

Board of directors

Chief executive officer (CEO)

Bull market

Bear market

Liquidation

Value

i.p.o.

prospectus

proxy rights

Stock categories: growth, penny, blue chip, secondary issues

stock certificates

tombstones

dividends

discount broker

stock broker

floor broker