PLATO Economics End of Semester Test 2023-2024 Questions and Answers 100% Correct absolute advantage - ANSWER-the advantage gained when a country's per-unit production cost is lower than that of other countries acceptability - ANSWER-the property of a good or service being universally acceptable in an economy allocation of resources - ANSWER-the distribution of available resources according to the demands and needs of society appreciation - ANSWER-an increase in a currency's value Asia-Pacific Economic Cooperation (APEC) - ANSWER-an economic forum with 21 members that promotes free trade assembly line - ANSWER-a manufacturing process in which product parts pass through a series of machines (or workers) that assemble them into a final product barrier to entry - ANSWER-an obstacle that prevents competition from entering the market Board of Governors - ANSWER-a seven-member board that oversees the Federal Reserve System budget deficit - ANSWER-a situation in which the government's expenditures exceed its revenue budget surplus - ANSWER-a situation in which the government's revenue exceeds its expenditures capital - ANSWER-the buildings, equipment, and human skills used to produce goods and services cartel - ANSWER-a formal organization of companies that collectively coordinates production and price 1 / 2
central bank - ANSWER-the bank that implements a government's monetary policy and regulates commercial banks circular flow model - ANSWER-a model that explains the flow of goods, services, and money in an economy collective bargaining - ANSWER-negotiations between an employer and representatives of the employees collusion - ANSWER-a secret agreement to set production and price limits command economy - ANSWER-a situation in which allocation and distribution of resources are controlled solely by the government commodity money - ANSWER-an object that has value in itself and can also be used as money communism - ANSWER-an economic and social system in which private ownership is completely eliminated and society collectively owns the rights to all resources comparative advantage - ANSWER-the advantage gained when a country produces goods and services at lower opportunity cost than other countries in the market competition - ANSWER-a situation in which a person strives to perform better and be more successful than someone else complementary good - ANSWER-a good used with another good or service consumer sovereignty - ANSWER-the control that consumer preference exercises over the production of goods and services contractionary fiscal policy - ANSWER-a decrease in government expenditures, an increase in taxes, or both enacted for the benefit of the economy corporation - ANSWER-a business entity whose rights and liabilities are separate from its shareholders and members credit card - ANSWER-a card used to buy goods and services on credit based on the holder's promise to pay for these goods and services plus the interest charged if the balance is not paid each month credit - ANSWER-money borrowed with a promise to pay it back later with interest cultural imperialism - ANSWER-when one country imposes its culture on another country or society
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