Economics Final Exam Review

Remember your Final is Friday. You can use one page of handwritten notes on the exam.


You can download the Review from Google Docs

https://docs.google.com/open?id=0B2mk7v8cXovLeEMxUFdEX25LLWM


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Economics Final Review

STOCK EXCHANGE/INVESTMENTS:

NYSE (New York Stock Exchange) The largest stock exchange in the United States

AMEX (American Stock Exchange) The second largest stock exchange in the United States

NASDAQ (National Association of Securities Dealers Automated Quotations) A stock exchange that is for

smaller companies

DJIA: (Dow Jones Industrial Average) A way to measure the stock exchange by using 30 stocks, it is made up

of 30 blue chip stocks.

S&P (Standards and Poors) stock index made up of 500 stocks

SEC (Securities Exchange Commission) This investigates the market to prevent unlawful actions

DRIP (Dividend Reinvestment Plan) If you are enrolled in this, it means that you will get additional stock instead

of dividends.

LIQUIDITY: This refers to the ease at which you can turn your investments into cash.

YIELD: The amount of money that you receive on your investments.

COMMON STOCK: would allow you to vote at the corporate yearly meeting

CAPITAL LOSS: refers to the money that is lost if an investor sells his stock for a loss

TIME DEPOSIT:

CD (Certificate of Deposit) A time deposit that varies in its’ length to time

IRA: A time deposit that cannot be touched until the age of 59 ½ years old.

UNIONS/STRIKES:

UAW: One of the nation’s largest unions

BOYCOTT: This is when a group encourages people to NOT do business with a company, an attempt to get the

public NOT to buy products from a company

BLACKLIST: This would prevent you from getting a job anywhere after you were fired

STRIKE: When workers refuse to go to work

SCAB: When someone crosses the picket line to replace a striking worker

INJUNCTION: A court order, an order by a judge forcing people to go back to work

LOCKOUT: When the owner of a company prevents the workers from going back to work in order to force

negations on his/her terms

NEGOTIATIONS:

ARBITRATION: When a 3^rd party is brought in to help with the collective bargaining and both sides agree to

abide with their decision no matter which side they choose.

MEDIATION: When a 3^rd party is brought in to help with the collective bargaining, their decisions is only a

suggestion and not a binding decision.

BANKING:

FDIC: This insures your banking account up to $250,000

COLLATERAL: Required to obtain a secured loan

BLACK TUESDAY: 10/29/29 when the stock market crashed

BLACK MONDAY: 10/87 the biggest one day drop

BLACK FRIDAY: the day that most businesses finally show a profit for the year (the day after Thanksgiving)

EQUITY: if you take out a second mortgage, this will go down & cause you to take longer to pay off the house

            When you sell your house you almost always get your equity back

DEPRESSION: A depression is worst than a recession

BEAR MARKET: is a market on the fall

BULL MARKET: is a market on the rise

BUSINESS MERGERS:

CONGLOMERATE: A type of business merger between companies that have nothing (very little) in common

HORIZONTAL MERGER: A type of merger between companies that compete with each other

INSURANCE:

COLLISION: Type of insurance that pays for damages to your car

LIABILITY: Type of insurance that pays for the other driver’s damage, the only type of car insurance

required in the state of Tennessee.

DEDUCTIBLE: The money that your insurance company requires that you pay first before they pay (the amount

of money that you must pay before your insurance pays)

SUPPLY/DEMAND:

SHORTAGE: When Supply is smaller < than demand

SURPLUS: When Supply is greater > than demand

DEMAND CURVE:

            Demand Increases then the curve will move to the right

            Demand Decreases then the curve will move to the left

COMPLEMENTARY GOODS (Go with each other) Example: Burger King French fries are complementary to the

Whopper.

ELASTICITY:

INELASTIC: If a product as an inelastic price, then no matter what happens to supply and demand,

the price will stay the same at all times. (Price Not Change) Example: Insulin

ELASTIC: The price will change depending on the supply and demand.

RENTING:

TENANT: The two most important things that a tenant must do is to pay the rent and to keep up the property

SECURITY DEPOSIT: is designed to guarantee that the tenant does not damage the apartment