Economics CP- Virtual SC final exam- vocab [ACTUAL EXAM] LATEST
VERSION [QUESTIONS AND ANSWERS] WITH PRACTICE EXAM
DETAILED AND VERIFIED FOR GUARANTEED PASS- LATEST
UPDATE 2025 GRADED A
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budget - CORRECT ANSWER an estimate of income and expenditure for a set
period of time.
business cycle - CORRECT ANSWER Alternating periods of economic expansion
and economic recession
capitalism - CORRECT ANSWER An economic system based on private property
and free enterprise.
circular flow of finance - CORRECT ANSWER Money flows to workers in the form of
wages, and money flows back to firms in exchange for products.
collateral - CORRECT ANSWER something pledged as security for repayment of a
loan, to be forfeited in the event of a default.
competition - CORRECT ANSWER the struggle among producers for the dollars of
consumers
consumer - CORRECT ANSWER A person who purchases goods and services for
personal use
Consumer Price Index (CPI) - CORRECT ANSWER a measure of the overall cost of
the goods and services bought by a typical consumer
Consumer sovereignty - CORRECT ANSWER the power of consumers to decide
what gets produced
Credit (collateral, creditor, borrower, loan, finance charge, and interest) - CORRECT
ANSWER -a contractual agreement in which a borrower receives something of value
now and agrees to repay the lender at some later date with consideration, generally with
interest. Credit also refers to an accounting entry that either decreases assets or
increases liabilities and equity on the company's balance sheet.
-a person, bank, or other enterprise that has lent money or extended credit to another
party.
, -is any fee representing the cost of credit, or the cost of borrowing. It is interest accrued
on, and fees charged for, some forms of credit. It includes not only interest but other
charges as well, such as financial transaction fees.
-the charge for the privilege of borrowing money, typically expressed as annual
percentage rate (APR). Interest can also refer to the amount of ownership a stockholder
has in a company, usually expressed as a percentage.
Credit cards - CORRECT ANSWER means of access to preapproved lines of credit
granted by a bank or finance company
credit score - CORRECT ANSWER A rating used by credit reporting companies to
help lenders decide whether and/or how much credit can be extended to a borrower.
credit union - CORRECT ANSWER nonprofit service cooperative that accepts
deposits, makes loans, and provides other financial services
currency and coins - CORRECT ANSWER a generally accepted form of money,
including coins and paper notes, which is issued by a government and circulated within
an economy. Used as a medium of exchange for goods and services, currency is the
basis for trade
debit card - CORRECT ANSWER A bank card that automatically deducts the amount
of a purchase from the checking account of the cardholder
Deflation - CORRECT ANSWER a decrease in the general level of prices
Demand Deposit Account (DDA) - CORRECT ANSWER account from which funds
can be removed by writing a check and without having to gain prior approval from the
depository institution
depression - CORRECT ANSWER A long-term economic state characterized by
unemployment and low prices and low levels of trade and investment
Disposable Personal Income (DPI) - CORRECT ANSWER personal income minus
taxes
Economic growth - CORRECT ANSWER a steady, long-term increase in real GDP
Economic systems (e.g., Command, market, traditional, mixed) - CORRECT ANSWER
-command economy is a system where the government, rather than the free market,
determines what goods should be produced, how much should be produced and the
price at which the goods are offered for sale. It also determines investments and
incomes. The command economy is a key feature of any communist society.
-an economic system in which the decisions regarding investment, production, and
distribution are guided by the price signals created by the forces of supply and demand.
VERSION [QUESTIONS AND ANSWERS] WITH PRACTICE EXAM
DETAILED AND VERIFIED FOR GUARANTEED PASS- LATEST
UPDATE 2025 GRADED A
Save
budget - CORRECT ANSWER an estimate of income and expenditure for a set
period of time.
business cycle - CORRECT ANSWER Alternating periods of economic expansion
and economic recession
capitalism - CORRECT ANSWER An economic system based on private property
and free enterprise.
circular flow of finance - CORRECT ANSWER Money flows to workers in the form of
wages, and money flows back to firms in exchange for products.
collateral - CORRECT ANSWER something pledged as security for repayment of a
loan, to be forfeited in the event of a default.
competition - CORRECT ANSWER the struggle among producers for the dollars of
consumers
consumer - CORRECT ANSWER A person who purchases goods and services for
personal use
Consumer Price Index (CPI) - CORRECT ANSWER a measure of the overall cost of
the goods and services bought by a typical consumer
Consumer sovereignty - CORRECT ANSWER the power of consumers to decide
what gets produced
Credit (collateral, creditor, borrower, loan, finance charge, and interest) - CORRECT
ANSWER -a contractual agreement in which a borrower receives something of value
now and agrees to repay the lender at some later date with consideration, generally with
interest. Credit also refers to an accounting entry that either decreases assets or
increases liabilities and equity on the company's balance sheet.
-a person, bank, or other enterprise that has lent money or extended credit to another
party.
, -is any fee representing the cost of credit, or the cost of borrowing. It is interest accrued
on, and fees charged for, some forms of credit. It includes not only interest but other
charges as well, such as financial transaction fees.
-the charge for the privilege of borrowing money, typically expressed as annual
percentage rate (APR). Interest can also refer to the amount of ownership a stockholder
has in a company, usually expressed as a percentage.
Credit cards - CORRECT ANSWER means of access to preapproved lines of credit
granted by a bank or finance company
credit score - CORRECT ANSWER A rating used by credit reporting companies to
help lenders decide whether and/or how much credit can be extended to a borrower.
credit union - CORRECT ANSWER nonprofit service cooperative that accepts
deposits, makes loans, and provides other financial services
currency and coins - CORRECT ANSWER a generally accepted form of money,
including coins and paper notes, which is issued by a government and circulated within
an economy. Used as a medium of exchange for goods and services, currency is the
basis for trade
debit card - CORRECT ANSWER A bank card that automatically deducts the amount
of a purchase from the checking account of the cardholder
Deflation - CORRECT ANSWER a decrease in the general level of prices
Demand Deposit Account (DDA) - CORRECT ANSWER account from which funds
can be removed by writing a check and without having to gain prior approval from the
depository institution
depression - CORRECT ANSWER A long-term economic state characterized by
unemployment and low prices and low levels of trade and investment
Disposable Personal Income (DPI) - CORRECT ANSWER personal income minus
taxes
Economic growth - CORRECT ANSWER a steady, long-term increase in real GDP
Economic systems (e.g., Command, market, traditional, mixed) - CORRECT ANSWER
-command economy is a system where the government, rather than the free market,
determines what goods should be produced, how much should be produced and the
price at which the goods are offered for sale. It also determines investments and
incomes. The command economy is a key feature of any communist society.
-an economic system in which the decisions regarding investment, production, and
distribution are guided by the price signals created by the forces of supply and demand.
