Which of the following terms is defined as the potential of gaining or losing something of value quizlet?

Treasury bills are issued with maturities as long as one year although typical maturities are 4 weeks, 13 weeks, 26 weeks, or 52 weeks. Note: Treasury bills are discounted securities.

Treasury notes are issued with maturities of 2, 3, 5, 7, and 10 year maturities.

Treasury bonds are issued with a 30-year
maturity. Both Treasury notes and Treasury bonds pay interest every six months.

TIPS (Treasury Inflation-Protected Securities) are issued with 5, 10, or 30 year maturities. Interest for TIPS is paid
twice a year at a fixed rate applied to the adjusted principal. At maturity, you are paid the adjusted principal or original principal, whichever is greater.

The Internet provides a wealth of information about stocks and other investment alternatives. Available information can range from simple price listings to detailed research information. Some of the information is free while there is a charge for the more detailed information available online from
professional advisory services.

Stock Advisory Services typically provide the most detailed information about stock investments.
Note: professional advisory services generally charge a fee for their services and the information may
be obtained by mail, fax, or by accessing a Web site on the Internet. It may also be available at a
college or public library.

A newspaper provides current information about stock symbols, prices, and net change. Newspapers may also provide stories about corporations that issue stocks and the economy in general.

Government publications from the SEC provide information about a corporation's finances. Other government agencies often provide information about the economy, interest rates, etc.

Business Periodicals Bloomberg Businessweek, Fortune, Forbes, Money, Kiplinger's Personal Finance Magazine, and similar publications contain information about stock investing.

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lesson 1.1, 1.2, Review, 1.3, and 1.4

Terms in this set (51)

LESSON 1.1

....

The amount of desire for a particular good or service would be defined using the following term:

Demand

A fundamental problem in economics is that human begins:

Have unlimited wants, but limited resources

The idea that there are limited resources for an unlimited amount of wants and needs is best expressed by the following term:

Scarcity

Money used to start a company would be considered to be a form of:

Financial capital

A situation where the quantity supplied is greater than the quantity demanded would best be described using the following term:

Surplus

Shelter would best be described as following:

A need

A new video game would best be described as follows:

A want

The connections and relationships a salesperson developed would be considered to be a form of:

Social capital

The workers at an automobile manufacturing plant would be considered to e a form of:

Human capital

If a grocery store started advertising boxes of a popular breakfast cereal that normally sells for $4 at the new price of ten cents, the likely result would be:

A shortage

Which of the following would be considered a land resource?

Petroleum

LESSON 1.2

...

If Jacob decided to go to three movies one week instead of attending a more expensive concert, that concert would represent the following concept:

Opportunity cost

The gain from an increase (or loss from a decrease) in the consumption of a good or service is known as:

Marginal utility

The change between the satisfaction you receive from drinking a first can of soda versus a fifth can of soda describes the concept known as:

Diminishing marginal utility

An estimation of revenue and expenses over a specified period of time is known as:

A budget

The amount of money that has to be paid to acquire a given product or service is best expressed by the following term:

Price

The total satisfaction received from consuming a good or service is known as:

Utility

The money collected by a theater employee for a movie ticket is best described by the following term:

Price

Comparing the benefits and costs of choosing a little more or a little less of a good is known as:

Marginal analysis

A fundamental problem in economics is that human beings:

Have unlimited wants, but limited resources

The full-time job not worked by a college student (and the waged not earned) because she has to spend a lot of time studying is an example of:

Opportunity cost

LESSON 1.2: REVIEW

...

The law of _________ returns.

diminishing

marginal analysis is sometimes called "thinking on the _________"

margins

The limits of a consumer's purchasing power is known as a budget_______.

constraint

LESSON 1.3

....

A preference for known risks over unknown risks is best described as follow:

Ambiguity aversion

A business professional who deals with the measurement and management of risk and uncertainty is best described as follow:

An actuary

A company in its first stage of its operations is often called:

A startup

The possibility that prices will rise in the future and that a business needs to plan for this is an example of:

Known risk

Which of the following is true about entrepreneurs and risk?

Entrepreneurs face high rates of risk.

The possibility that something of value may be lost is known as:

Risk

Which of the following is most accurate about starting a new business?

Entrepreneurs lose the security of a regular paycheck.

Which of the following is NOT true about entrepreneurs and financing their new business?

Banks are very willing to loan money to entrepreneurs for their companies.

Which of the following would NOT be a characteristic of an entrepreneur?

Someone who exhibits risk aversion.

The following statement best reflects entrepreneurs and delegation of responsibility:

Entrepreneurs need to be careful of what they delegate to employees.

Which of the following is most accurate about entrepreneurs and knowledge about the business?

Entrepreneurs need to be able to hire professionals for many aspects of their business.

LESSON 1.4

...

An economy in which production, distribution, and exchange are controlled by individuals and business is known as:

A market economy

Changes to which of the following does NOT result in a movement of the production possibilities curve?

An increase in demand for products.

Which of the following is NOT one of the four basic economic question that each society must answer?

Where should factories de located?

A measure of the effectiveness of productive effort is known as:

Productivity

An economy in which elements of both private enterprise and government intervention are present is known as:

A mixed economy

The former Soviet Union was an exampleof:

A command economy

A type of agriculture in which the farmers focus on growing enough food to feed themselves and their families is known as:

Subsistence agriculture

The cost added by producing or consuming one extra item of a product is best described as:

Marginal cost

Which of the following is NOT true about a command economy?

Markets determine supply, demand, and price

Not using resources efficiently or to the maximum potential value is known as:

Underutilization

an economy in which production, investment, prices, and wages are dictated by a government is known as:

A command economy

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What is the term for the potential of gaining or losing something of value?

Risk. The potential of losing something of value, weighed against the potential of gaining something of value.

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