| A | B |
|---|
| Another word for capitalism is | Free enterprise or free market |
| What is a debit card? | An account linked to your checking account, sometimes you get charged for using this |
| What is a CD? | Account like a savings account but stays in the bank for a set amount of time before you can touch it |
| What is a 401k? | An account that is for retirement savings |
| What is a mortgage? | A home loan |
| What is a credit card? | A card that can be used to pay for items, but, if you do not pay the money back immediately, you will pay interest |
| Who controls monetary policy? | The Fed |
| What is opportunity cost? | The next best alternative, what you could have done/bought instead |
| If you are a victim of identity theft, you should | report it to the police, report it to the credit bureaus, and research the problem |
| What is a want? | Something you would like to have |
| Who is Karl Marx? | The Father of Communism |
| Who is Milton Friedman? | Economics who believed in trickle-down economics |
| Who is Adam Smith? | Econonomist who believed the government should not be involved (invisible hand) |
| Who is John Keynes? | Economist who believed the government should step in when the economy was doing poorly |
| What is bartering? | The exchange of goods and services without using money |
| What is representative money? | Money carried that has a standard backing (like the gold standard) |
| What is currency? | Liquid form of money like dollars and coins |
| What is commodity money? | Money that comes from the value of what it is made of |
| What is fiat money? | Money that has no value in and of itself |
| What is NAFTA? | A free trade organization between the United States, Canada, and Mexico |
| What are IRAs? | A retirement fund where the company you work for does not match the funds |
| What is socialism? | Where the government owns some of the means of production |
| The circular flow model shows the relationship between | financial institutions, households, the govenrment, and businesses |
| Identity theft does NOT occur when | you open an account in your own name |
| What is a flat income tax? | A tax where you pay the same percentage regardless of how much money you make |
| What is diminishing marginal utility? | The idea that each additional unit of an item makes you less happy |
| What is communism? | Where the government owns the means of production |
| What is the WTO? | A trade organization for the entire world |
| What is a progressive tax? | A tax where the more money you make, the more you have to pay |
| How often should you balance your checkbook? | Once per month |
| What kind of economy does China have? | Communist |
| WHat are the types of unemployment? | Seasonal, frictional, cyclical, and frictional |
| What is scarcity? | The combination of unlimited wants with limited resources |
| What is a problem with owning property? | It can be repossessed |
| What kind of economic system does the United States have? | Capitalist |
| What is a sole proprietorship? | Only one person owns the company |
| What is an advantage of a corporation? | Nobody can be personally sued |
| What is the financial benefit of a corporation? | They can raise a lot of money |
| What is a corporation? | A company where anyone can own an interest by buying stock |
| What is a partnership? | Where a few people own the company |
| What is a disadvantage of a sole proprietorship? | The one person who owns the company can personally be sued |
| What is a benefit of a partnership? | Only the partners can profit |
| What is a need? | Something you must have to survive |
| What is comparative advantage? | One country or individual gives up less to produce something than another country or individual |
| What is monetary policy? | Policies controlled by the Federal Reserve |
| What are imports? | Buying things from other countries, which hurts our economy |
| What is inflation? | The value of the dollar decreasing |
| What is absolute advantage? | One country can produce more of something than another country |
| What are some good things that happen because of good credit? | Lower interest rates on loans, the ability to co-sign loans with others, and the ability to get loans |
| Uniquely, savings account sometimes | have a limit to the number of times you can make a withdrawal |
| What is capitalism? | Where buyers and sellers decide what to produce and how much to purchase |
| What are the factors of production? | Land, labor, capital, entrepreneurship |
| What will happen to supply or demand if: unemployment rises | Demand decreases |
| What will happen to supply or demand if: a hurricane wipes out many factories | Supply decreases |
| What will happen to supply or demand if: workers become more productive | Supply increases |
| More people move into the United States | Demand increases |
| What is an oligopoly? | A few people own the means of producing an item |
| What is zoning? | The government prohibiting certain kinds of businesses from being in certain areas |
| What are lemon laws? | Protects consumers if they buy an item that is defective |
| What is quantity control? | The government limits the number you can buy of something (example might include cough syrup) |
| What are subsidies? | When the government pays people not to grow something |
| What is bait and switching? | Illegal practice where an item is advertised but not available for purchase |
| What is pure competition? | Buyers and sellers decide what to produce and how much to purchase |
| What is a grace period? | The period of time before you must start repaying a loan or debt |
| What is a monopoly? | Only one person or group owns the means of producing an item |
| What does the production possibilities curve show? | The possibilities of making one item or another in a society |
| What is a regressive tax? | The less you make, the higher percentage of your income you pay |
| What are the three basic economic questions? | What to produce, how to produce it, and for whom to produce |
| What are tolls? | Money paid to use a bridge or other tollway |
| What are tariffs? | Money paid on items imported from another country |
| What is a sales tax? | Money paid on goods and services purchased |
| What is a federal income tax? | Money paid for wages earned |
| What is a corporate income tax? | Money paid by large corporations |
| What is an inheritance tax? | Money paid on cash or property received from someone who died |
| What is a capital gains tax? | Money paid when stocks or other assets are cashed in |
| What is a property tax? | Money paid for owning property paid to the local government |
| The four factors of GDP are | consumption, gross private investment, government spending, and net exports |
