| A | B |
|---|
| maximize profits | The primary purpose of financial planning is to |
| saving and paying cash | A sinking fund approach means |
| factor markets | Factors of production are bought and sold in |
| perfect competition | Market wt identical products, large number of independent buyers & sellers |
| tariffs | One result of NAFTA was to reduce these among U.S., Canada, & Mexico |
| domestic industries | Protectionists justify high tariffs because they protect |
| mutual funds | money from investors used to purchase stocks, bonds, etc. and managed by a fund manager |
| factors of production | Land, labor, capital, and entrepreneurs |
| variable costs | costs for electricity, shipping, and labor are examples of |
| individual income tax | The single most important source of revenue for the national government is the |
| federal budget | The annual plan outlining proposed revenues and expenditures for the coming year is the |
| taxes on the product increase | The supply of a product normally decreases if |
| wage determination | Theory that wages are based on the supply and demand for a worker's skills is the market theory of |
| capital goods | manufactured goods needed to produce other goods & services |
| compound interest increases returns | Savings are particularly important to young people because |
| $7.85 | Current minimum hourly wage in Ohio for those over 16 |
| Gross Domestic Product (GDP) | Dollar value of all final goods, services, and structures within a country's borders in one year |
| greater than the quantity demanded | At a given price, a surplus occurs when the quantity supplied is |
| Federal Open Market Committee | Committee that advises the Fed on growth of money supply & level of interest rates |
| primitive equilibrium | When a developing country is this stage, it has no formal economic organization |
| semidevelopment | When a developing country is this stage, its income is growing faster than its population |
| paradox of value | When some necessities have little value while some non-necessities have much higher value |
| negotiated wages | Theory that unions are a factor that helps to determine wages is the theory of |
| mutual funds | funds of various investors used to purchase stocks, bonds, etc by a fund manager |
| FDIC | Individual bank accounts are insured for $250,000 by the |
| money market account | Best place for your emergency fund is a |
| disposable personal income | amount of money consumers have after taxes are deducted |
| W2 | Form from an employer that is needed to complete your tax return |
| W4 | Form you fill out if hired for a job |
| debt snowball | Paying off list of debts by paying extra on smallest debt first |
| substitution effect | Consumer's wililngness to replace a costly item with a less costly item is an example of the |
| Trade barriers | enacted to create competition for domestic production |
| a loan from the bank that issued the card | Using your credit card is actually taking out |
| absolute and comparative advantage | Terms related to nations engaged in trade. |
| $1254.40 | If you invest $1,000 at 12% interest, how much money will be in the account in 2 years, compounded annually? |
| central government planning | Free enterprise economy will not thrive with |
| expansion | After passing through a trough, the business cycle enters a period of |
| too discouraged to look for work | Unemployment rates do not count those |
| outsourcing | The relocation of jobs to foreign countries |
| inelastic | A modest price increase for an item has little or no effect on the demand means the demand is |
| emergency fund | You should save for wealth building, purchases and |
| more | Using credit usually means people will spend |
| microeconomics | The study of economic behavior of individuals and firms is |
| net pay | Amount of money left in your paycheck after taxes are paid is |
| $500 or $1,000 based on current income | Amount of money that should be in your emergency fund |
| reducing taxes | Supply-side policies seek to stimulate investment and consumer spending by |
| total cost | Fixed costs + variable costs = |
| depression | Severe shortages, high unemployment, excess capacity in manufacturing is a |
| offer more and for consumers to buy less | In a market economy, a high price is a signal for producers to |
| Diversification | "Don't keep all your eggs in one basket" refers to |
| fiscal policy | Use of gov't spending and taxing to influence economic activity |
| unimited wants with limited resources | Fundamental problem that economies tries to solve is how to satisfy |
| entrepreneurs | People who are the driving force in an economy as they start new businesses. |
