| A | B |
|---|
| Producers provide the goods and services that consumers want | supply and demand |
| The price when the quantity of supply meets the quantity of demand of a particular good or service. | equilibrium price |
| The United States of America is an example of this type of economy | mixed economy |
| A system in which a central authority makes the key economic decisions, examples of two types are communism and socialism | command economy |
| The value of the goods and services produced in a country in a given year. | GDP |
| When an economy produces more goods than people want, it has to lower prices and cut production, as a result demand continues to go down due to people having less money to buy goods. This economic event happen to the Asian nations in the 1990’s. | deflation |
| In the 1970, and oil shortage in the United States caused gas prices to increase which lead to what is known as the “ripple effect”, or ______ phase of the business cycle. | recession |
| A measure of economic strength is a general increase in the cost of goods and services, when an economy becomes too productive, economist refer to this as a period of __. | inflation |
| A cycle of low unemployment rates and unusually higher than normal wages. | prosperity |
| Currently, the United States of America is experiencing what type of budgeting issue? | budget deficit |
| The main source of income for a government to operate is due to taxes, when taxes exceed the expenditures a country experiences a | budget surplus |
| This depends on how many other countries want to buy another counties products | exchange rate |
| Goods or services the Unites States buys from another country | imports |
| Goods and services that the United States sells to another country | exports |
| The difference in the value between how much a country imports and how much it exports | balance of trade |
| The quantity that is available has a direct effect on a societies economy | natural resources |
| The United States produces so much more goods and services than other countries, that it causes this to be higher than compared to other countries | standard of living |
| An economy that offers incentives such as competition and the profit motive, to produce more also referred to as a capitalist system | market economy |
| Federal Insurance Contributions Act; which covers Social Security tax which provides a small income for the elderly, disabled Americans and orphaned minors, Also applies to Medicar Tax which provides medical insurance to the elderly and some disabled americans; these taxes are deducted from employees' wages each pay period by employers on behalf of the employees. This is not optional but a federal law. | FICA |
| What interest rate would be necessary to double a $2,000 investment in 15 years? | 4.8 (72/15) (rule of 72/years) |
| How many years would it take to double $100 investment if it earned 2.75% interest per year? | 26.18 (72/2.75) (rule of 72/Interested paid) |
| List the critical components to a lender’s decision regarding if and how much to lend you? | Collateral, Capital, Character, Capacity |
| Analyzing the U.S. market in the 1990 was a record period in the U.S due to the internet creating new business opportunities, this time in Americas history would be labeled where using the business cycle? | Prosperity |
| The United States economy was saved by the Japanese bombing of Pearl Harbor, which lead to World War II, this mark of history can be labeled as which phase of the business cycle? | Recovery |
| Analyzing the U.S. market in the 1970’s, which phase would the U.S. market be placed on the business cycle? | Recession |
| Economists calculate the Gross Domestic Product (GDP) by computing the sum of goods and services, is calculated through which activities? | Consumers, Government, and items sold to other countries |
| The United States tries to maintain a slow but steady rate of economic growth to avoid both inflation and deflation, this is done by: | the number of people unemployed; and Controlling productivity |
| Balance of trade examples: | Surplus or Deficit |
| Trade Deficiet results in: | strong currency meaning we have more imports than exports |
| Trade Surplus results in: | Having more exports than imports creating weak currency; because (it is cheaper to get items from US than their own country) |
| Trade Barriers are (3 types) | Tariffs, Quotas, Embargos |
| Restrictions placed on a country or company that protects businesses in the U.S. | Protectionism |
| Encourages competition and productivity | Free Trade |
| Sarah was given a $1,500 in Treasury Bills earning 11/9% interest, when she turned six years old by her grandparents. How much will those be worth when she turns 18? How much would she have if they would have invested this at birth? (nearest tenth) | From 6-18 $6,000; 0-18 $12,000 Notes:1. Calculate yrs. To double (72/11.9% = 6.0 years to double); 2. How long it has to grow ((18-5 how long) 13 years to grow); 3. How many times the investment will double ( yrs to grow 13/6.0 yrs to double) |
