Match the Term with the Definition

question 94

Short Answer

Match the term with the definition.
1) subsistence economy
2) conspicuous consumption
3) barter
4) fiat money
5) inflation
6) money
7) gold standard
8) stored value
9) capitalism
10) laissez-faire capitalism
11) state capitalism
12) socialism
13) convergence theory
14) quiet revolution
15) underground economy
-A) paper money backed by gold stored at Fort Knox, thus limiting the amount of dollars issued
B) an economic system in which individuals own the means of production but the state regulates many economic activities for the welfare of the population
C) currency issued by a government that is not backed by stored value
D) an economic system characterized by the private ownership of the means of production, the pursuit of profit, and market competition
E) a type of economy in which human groups live off the land and have little or no surplus
F) fundamental changes in society created by the vast numbers of women moving into the workforce
G) any item that has value and serves as a medium of exchange, the most common form today being currency
H) a hybrid of mixed economies that combines capitalism and socialism
I) the goods that are held in reserve that back up a currency
J) an economic system characterized by public ownership of the means of production, central planning, and distribution of goods without a profit motive
K) Thorstein Veblen's term for a shift from the sensibility of the Protestant ethic to an eagerness to show off wealth through the consumption of goods
L) the direct exchange of one item for another
M)exchanges of goods and services that are not reported to the government to avoid taxation
N) a period during which each unit of currency purchases fewer goods and services, leading to an increase in prices
O) unrestricted manufacture and trade

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Definitions:

CPI

This index, the Consumer Price Index, measures how the average prices of various consumer services and goods, including food, transportation, and healthcare, evolve using a weighted average technique.

Tooth Fairy

A mythical figure in Western cultures that exchanges lost baby teeth for a small payment when placed under a child's pillow.

CPI

A tool called the Consumer Price Index offers insight into the weighted average changes in prices for a selection of consumer-related goods and services, with a focus on sectors like transportation, food, and medical care.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing and the real yield to investors.