Term
| Any resources that are made by humans and used to create other goods and services are called |
|
Definition
|
|
Term
| An example of a shortage is limited amounts of |
|
Definition
| food avaliable because the trucks carrying it are on strike |
|
|
Term
| The resources used to make all goods and services are the |
|
Definition
|
|
Term
| the purpose of the production possibilties graph is to |
|
Definition
| show alternative ways to use an economys resources |
|
|
Term
| an efficient economy is one that |
|
Definition
| uses its resources to make the most goods and services |
|
|
Term
| the law of increasing costs means that when an economy increases the production of one item |
|
Definition
| the production costs will increase also |
|
|
Term
| the government of a country must make a decision between increasing military spending and subsidizing wheat farmers this kind of decision is a |
|
Definition
|
|
Term
| production possibilities frontiers curve when they are charted on a graph because they show |
|
Definition
| the increasing costs resulting in increasingly less output |
|
|
Term
| what is the opportunity cost of a decision |
|
Definition
| the most desirable alternative given up for the decision |
|
|
Term
| what is a factory building an example of |
|
Definition
|
|
Term
| a countrys production possibilities increase because the available workers become more skilled at using a computer this is an example of growth caused by |
|
Definition
|
|
Term
| which of the following are factors of production |
|
Definition
|
|
Term
| which of the following is an example of using physical capital to save time and money |
|
Definition
| building extra space in a factory to simplify production |
|
|
Term
| to what part of an industry does a workers education contribute |
|
Definition
|
|
Term
| what does an economist mean by the term land |
|
Definition
| all natural resources used to produce goods and services |
|
|
Term
| if a person who wants to buy a compact disc(cd) has just enough money to buy one and chooses cd a instead of cd b, then cd b is the |
|
Definition
|
|
Term
| every decision involves trade offs because |
|
Definition
| everyones resources are limited |
|
|
Term
| all of the following are trade offs for a student who spends a semester abroad except |
|
Definition
| experiencing the culture of another country |
|
|
Term
| a production possibilities graph shows the relationship between the production of |
|
Definition
| any 2 categories of goods |
|
|
Term
| the line on a production possibilities graph showing the relative amounts of two types of goods produced using all resources (at its maximum) is called the |
|
Definition
| production possibilities frontier |
|
|
Term
| increasing the number of laborers in an economy generally causes an |
|
Definition
| increase in the production possibilities curve (shift to the right) |
|
|
Term
| an economy that is not using all its resources to gain the maximum possible production is |
|
Definition
|
|
Term
| an economy that is producing the maximum amount of goods and services is considered |
|
Definition
|
|
Term
| each society determines who will consume what is produced based on |
|
Definition
| its unique combination of social values and goals |
|
|
Term
| traditional economies are usually |
|
Definition
| small close communities that avoid change and new technology |
|
|
Term
| an economy in which only the government make economic decisions is a |
|
Definition
| centrally planned economy |
|
|
Term
| why do people need to buy and sell products or services |
|
Definition
| no one is self sufficient |
|
|
Term
| who owns the factors of production |
|
Definition
|
|
Term
| what invisible hand regulates the free market economy |
|
Definition
| competition and self interest |
|
|
Term
| what did warren g harding mean by "less government is business, and more business in government |
|
Definition
| free enterprise in which business gets little more interference from government |
|
|
Term
| what basic ideas are fundamental to american free enterpriese |
|
Definition
| economic freedom, private property, contracts, voluntary exchange, self interest, profit motive and competition |
|
|
Term
| how does government resolve issues of public interest |
|
Definition
|
|
Term
| what is the purpose of free enterprise |
|
Definition
| to give consumers freedom of choice |
|
|
Term
| what occurred in 1970 that changed worker health and safety |
|
Definition
| the government created the occupational safety and health administration |
|
|
Term
| what incentive motivates a manufacturer to sell a product |
|
Definition
|
|
Term
| the saving habits of ben and arthur best illustrate which principle of saving |
|
Definition
| rate of return matters, the length of time money is invested matters |
|
|
Term
| what is the most sensible way to buy a $4000 car |
|
Definition
| use the sink fund approach save $400 a month for ten months |
|
|
Term
| which is the correct order of priorities for your money |
|
Definition
|
|
Term
| what is not a key to saving money |
|
Definition
|
|
Term
| which of the following is not a reason to save |
|
Definition
|
|
Term
| how much money should lisa and joe have in their emergency fund if they have a $3000 credit card bill and a mortgage |
|
Definition
|
|
Term
| if you invest $1000 at 12% interest, how much money will be in the account after two years, compounded annually |
|
Definition
|
|
Term
|
Definition
|
|
Term
| a sinking fund approach means |
|
Definition
|
|
Term
|
Definition
| when you pay with cash you can almost always negotiate a better deal |
|
|
Term
| what is the next step after you have a fully funded emergency fund |
|
Definition
| invest 15% of your income into roth iras and pretax retirement plans |
|
|
Term
| using the sinking fund apporach how much do you have to save to buy a $5000 car net year |
|
Definition
| $416.66 a month into savings |
|
|
Term
| how much money should you have in your emergency fund if you are working on baby step #2 (pay off all debt) |
|
Definition
| $500 of $1000 depending on your current income |
|
|
Term
| the risk of return ratuo says |
|
Definition
| when the risk goes up the return generally will go up |
|
|
Term
| which is not a good investment |
|
Definition
| gold. commodities, viaticals |
|
|
Term
| a collection of money from different investors which is used to purchase stocks bonds or other investments managed by a fund manager |
|
Definition
|
|
Term
| the KISS rule of investing teaches |
|
Definition
| keep things simple and never buy something you dont understand |
|
|
Term
| your piece of ownership in a company is called |
|
Definition
|
|
Term
| which of the following funds would be most risky |
|
Definition
|
|
Term
| which statement is true about liquidity |
|
Definition
| the more liquid an investment is the less return |
|
|
Term
| the company jason works for matches his 401(k) contribution up to 5% jason takes advantage of this and contribute $200 per a month, at the end of one year, how much money will be in his account |
|
Definition
|
|
Term
| which is an advatage of a roth ira |
|
Definition
|
|
Term
| the primary difference between the roth ira and traditional ira is |
|
Definition
| the roth ira grows tax free the traditional ira doesnt |
|
|
Term
| what is the best option for your retirement plan when you leave a company |
|
Definition
| do a direct transfer into ira |
|
|
Term
| when seeking a finacial counselor to help you with your investments always go with |
|
Definition
| a financial counselor with the heart of a teacher who explains everything to you |
|
|
Term
| what does baby step #5 say about saving for your childrens college |
|
Definition
|
|
Term
| the fact that money must withstand the wear and tear that comes from being used over and over again is a measure of its |
|
Definition
|
|
Term
| money that can be easily divided into smaller units of value has the characteristics of |
|
Definition
|
|
Term
| what is the gold standard |
|
Definition
| a system in which countrys money is backed with gold |
|
|
Term
| what is the difference between simple and compound interest |
|
Definition
| simple interest is paid on the principal only compound interest is paid on both principal and interest |
|
|
Term
| how does a bank make the most of its profit on its business |
|
Definition
| by paying out less interest on deposits than it earns in interest on loans |
|
|
Term
| after 4 years $5000 will grow to how much by using compound interest if it earns 10% interest? (assume compounded annually |
|
Definition
|
|
Term
| ___% of any 5 year period in the stock market has made money |
|
Definition
|
|
Term
| ___% of any 5 year period in the stock market has made money |
|
Definition
|
|
Term
| two units of the same type of money must be the same in terms of what they will buy which is the principle of |
|
Definition
|
|
Term
| what is the money an investor recieves above and beyond the money initially invested called |
|
Definition
|
|
Term
| the fist thing you should save for is your retirement fund |
|
Definition
|
|
Term
| your first baby step is to pay off your debt |
|
Definition
|
|
Term
| the only difference between saving and hoarding is attitude |
|
Definition
|
|
Term
| always invest for tax purposes |
|
Definition
|
|
Term
| liquidity means to spread around and lower risk |
|
Definition
|
|
Term
| oil and gold are examples of commodities and futures |
|
Definition
|
|
Term
| when investing you should always check the 1 year track record of your possible investments |
|
Definition
|
|
Term
| saving bonds are a great way to save for college |
|
Definition
|
|
Term
| the roth ira came about in 1994 |
|
Definition
|
|
Term
| the roth ira is after tax investment that taxes must be paid on |
|
Definition
|
|
Term
| you want to start a college fund for your newborn son |
|
Definition
|
|
Term
| your daugter has a wedding next year |
|
Definition
|
|
Term
| you want to buy a car in two years |
|
Definition
|
|
Term
| you want to open a roth ira |
|
Definition
|
|
Term
| you want to buy a house within the next five years |
|
Definition
|
|
Term
| your daughters prom is in 6 months |
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| why does an economist create a market demand curve |
|
Definition
| to predict how people will change their buying habits when prices change |
|
|
Term
| what does it mean when an economist says that a consumer has demand for a good or service |
|
Definition
| the consumer is willing and able to buy the good or service at the specified price |
|
|
Term
| if prices rise and income stays the same what is the effect on demand |
|
Definition
| an assumption that nothing but the price of an item will change |
|
|
Term
| what do economist call a situation in which consumers buy a different quanity than they did before at every price |
|
Definition
|
|
Term
| how can expectations about the future change consumer behavior |
|
Definition
| immediate demand for one good will go up if its price is expected to rise |
|
|
Term
| how can the demand for one good be affected by increased demand for another one |
|
Definition
| if goods are used together increased demand for one will increase demand for the other |
|
|
Term
| what causes a change in the demand curve or a shift in demand |
|
Definition
| a change in an area other than price |
|
|
Term
| what does elasticity of demand measure |
|
Definition
| how buyers will cut back or increase their demand when price rises or falls |
|
|
Term
| for which of the following products or services is supply likely to be inelastic in the short term whether prices rise or fall |
|
Definition
|
|
Term
| what is the principle of the law of supply |
|
Definition
| the higher the price the larger the quanity produced |
|
|
Term
| what is the term for supply of a product that cannot easily or quickly expand or reduce its production |
|
Definition
|
|
Term
| what effect does a rise in the cost of machinery or raw materials have on the cost of a good |
|
Definition
| the good becomes more expensive to produce |
|
|
Term
| what does new technology generally do to production |
|
Definition
| it lowers cost and increases supply |
|
|
Term
| when any effort by government causes the supply of a good to rise what happens to the supply curve for that good |
|
Definition
|
|
Term
| what happens when any market is in disequilibrium and prices are flexible |
|
Definition
| market forces push toward equilibrium |
|
|
Term
| how does a firm generally respond to a higher demand for its goods |
|
Definition
|
|
Term
| how do falling prices affect supply |
|
Definition
| the supply curve moves to the left |
|
|
Term
| equilibrium in a market means which of the following |
|
Definition
| the point at which quanity supplied demanded are the same |
|
|
Term
| which of the following is true about using credit |
|
Definition
| when using credit one spends more time |
|
|
Term
| whats the best way to buy a car |
|
Definition
| purchase used 2 years or older |
|
|
Term
| how much more do you spend on purchases when you use credit vs cash |
|
Definition
|
|
Term
| what is the problem with using credit cards if you pay your balance off each month |
|
Definition
| you are spending an average of 12-18% more when you use a credit card. you are more apt to buy on impulse rather than thinking about a purchases |
|
|
Term
| which is true about the market of credit cards to teenagers |
|
Definition
| teens are the number one target of credit card companies across america, brand loyalty to your first credit card is incredible so credit card companies work hard to beocme the first issuer, colleges are losing more students to credit card debt problems than to academic failure |
|
|
Term
| which type of mortgage is the best to take out particuarly if you are going to be moving in 5 to 7 years |
|
Definition
|
|
Term
| which of the following is a step out of debt |
|
Definition
| quit borrowing money, sell something , using the debt snowball |
|
|
Term
| which is not part of the debt snowball |
|
Definition
| list your debt from highest interest rate to the lowest interest rate |
|
|
Term
| kevin has the following debts home equity loan $24000 visa $1200 student loan $5000 car $12000 how should he priortize his debt snowball |
|
Definition
| visa, student loan, car, home equity |
|
|
Term
| why is gazelle intensity so important in getting out of the cycle of debt |
|
Definition
|
|
Term
| the main difference between debt and credit card is |
|
Definition
| a debit card requires that you have the cash avaliable in the account a credit card doesnt |
|
|
Term
| how is a debit card like a credit card |
|
Definition
| they both can have the visa or mastercard logo, a debit card can have a minimum monthly finance charge, a debit card can be swiped and require a signature like a credit card |
|
|
Term
| what concept likely had an impact on mcdonalds when they began accepting credit cards |
|
Definition
people spend 12-18% more using plastic so the average price of an order increased
, people foundit more convenient to pay with a credit card so the average price of an order increased |
|
|
Term
|
Definition
| pay off all debt using the debt snowball |
|
|
Term
| which is true about the myth i will take out a 30 year mortgage and pay it off early |
|
Definition
| pay off all debt using the debt snowball |
|
|
Term
| why should you avoid lending money |
|
Definition
| the relationship changes, often the realtionship end completely, the person borrowing the money is in bondage to you |
|
|
Term
| which is the danger of co signing a loan |
|
Definition
| if the person doesnt pay you become responsible for the debt |
|
|
Term
| which of the following is not a myth |
|
Definition
| 78% of americans do not pay off their credit card balance every month |
|
|
Term
| which of the following is not part of product positioning |
|
Definition
|
|
Term
| a ______ is usually over $300 but can vary depending on the person |
|
Definition
|
|
Term
| the average person is exposed to _____ advertisements per day |
|
Definition
|
|
Term
| what is safe assumption to make regarding companies |
|
Definition
| companies use all angles to aggressiverly compete for your money, companies konw that competition is fierce for consumer dollars, companies spend millions of dollars and do extensive research on advertising |
|
|
Term
| placing gum next to cash register in a store is an example of |
|
Definition
|
|
Term
| what conept is best explained by the statement money spent here cannot be spent there |
|
Definition
|
|
Term
| when should you send a cease and desist letter to creditors |
|
Definition
| only in the most extereme situations |
|
|
Term
|
Definition
|
|
Term
| which of the following is not one of the four walls |
|
Definition
|
|
Term
| in which case are you most likely to get sued if you are behind in paying bills |
|
Definition
| if you are making not payments, if you have stopped all contact |
|
|
Term
| which of the following is/ are true about lawsuits under $10000 |
|
Definition
| they are filed in small claims court and are informal proceedings, at any time during the process you may settle withe the creditor or their attorney, if the debt is valid you will lose the case |
|
|
Term
| which is not a precaution to prevent your identity from being stolen |
|
Definition
| keep your social security card on you at all times |
|
|
Term
| an overdue payment is called |
|
Definition
|
|
Term
| the homeowner cant make payments on the mortgage and the lender takes the property |
|
Definition
|
|
Term
| to reclaim possession of an item bc the borrower failed to make payments |
|
Definition
|
|
Term
| the dollar value of all final goods and services produced within a countrys borders in a given year is called |
|
Definition
|
|
Term
| the calculation gdp would include |
|
Definition
| the price of the steel used to build a new hotel |
|
|
Term
| what are consumer goods that last for a long time |
|
Definition
|
|
Term
| waht are intermediate goods |
|
Definition
| goods used in the production of other goods |
|
|
Term
| what is the underground economy |
|
Definition
| the products and income that are not reported as income to the government |
|
|
Term
| which of the followign is a nondurable good |
|
Definition
|
|
Term
| what is the real difference between real gdp and nominal gdp |
|
Definition
| real gdp is based on constant prices nominal gdp is based on the current years prices |
|
|
Term
| what is a prolonged economic contraction called |
|
Definition
|
|
Term
| the main economic variables that affect business cycles include all of the following except |
|
Definition
|
|
Term
| what happens to consumer and business spending when the interest rates go up |
|
Definition
| both types of spending decrease |
|
|
Term
| what are the leading economic indicators supposed to predict |
|
Definition
|
|
Term
| what is the difference between seasonal unemployment and structural unemployment |
|
Definition
| seasonal unemployment occurs bc of schedules whereas structural bc people lack skills |
|
|
Term
| what type of unemployment rises during economic downturns and falls when the economy improves |
|
Definition
|
|
Term
| when people change jobs or get laid off what type of unemployment do they experience |
|
Definition
|
|
Term
| when the economy is working properly what is the unemployment rate |
|
Definition
|
|
Term
| what does the unemployment rate represent |
|
Definition
| the percentage of total work force that is unemployed |
|
|
Term
| what does full employment mean |
|
Definition
| every person who want to work has a job |
|
|
Term
| why dont government planners try to end seasonal unemployment |
|
Definition
| it is a natural part of a healthy economy |
|
|
Term
| what is the term for a situation in which a person is overqualified for the job he or she has |
|
Definition
|
|
Term
|
Definition
|
|
Term
| what is a sustained drop in the price of goods called |
|
Definition
|
|
Term
| which theory says inflation occurs when the demand for goods exceed the supply |
|
Definition
|
|
Term
| if a person has money invested at 9% and the rate of inflation is 5% how much return are they actually making on their investments |
|
Definition
|
|
Term
|
Definition
| proportion of disposable income spent to income saved |
|
|
Term
| what is labor productivity |
|
Definition
| the amount of output produced per worker |
|
|
Term
| what is consumer price index |
|
Definition
| an index determined by measuring the price of standard goods brought by urban consumers |
|
|
Term
| how does the us census bureau define a family |
|
Definition
| two or more people realted by birth who live in the same housing unit |
|
|
Term
| approximately how much total income does a family of 4 need to have to be considered above the poverty line |
|
Definition
|
|
Term
| what age group in the united states has the largest percentage of its members living in poverty |
|
Definition
|
|
Term
| products that would be used in calculating gdp include |
|
Definition
| cars manufactured in tennessee at a factory owned by a japanese automobile company |
|
|
Term
| in order to effictively manage money, you need a |
|
Definition
|
|
Term
| a written cash flow plan is done every |
|
Definition
|
|
Term
| the saving rate in the united states is |
|
Definition
|
|
Term
|
Definition
| people telling their money what to do, a written financial goal, being proactive with your money |
|
|
Term
| on average how long will it take before your budget begins to work effictively |
|
Definition
|
|
Term
| which of the following could explain a different balance between your statement and account register |
|
Definition
| outstanding checks, unrecorded deposits, and manual error |
|
|
Term
| which is a reason why people avoid making a budget |
|
Definition
| fear of what they may find, a budget has been used to abuse them, they never had a budget that really worked |
|
|
Term
| a budget will not work if you |
|
Definition
|
|
Term
| if you are struggling financially and are behind on your bills, what should you budget first |
|
Definition
|
|
Term
| which statement best describes a zero based budget |
|
Definition
| income minus outgo equals zero |
|
|
Term
| which of the following is not one of the three keys to finding a bargain |
|
Definition
|
|
Term
| which of the following is not a good place to negotiate |
|
Definition
|
|
Term
| which is not a characterstic of cash |
|
Definition
|
|
Term
| joe tries to bargain at an electronic store but is unable to negotiate the price down. what should be his next step |
|
Definition
|
|
Term
| bargain hunting takes a lot of |
|
Definition
|
|
Term
| which is true about purchasing used items from individuals |
|
Definition
| individuals are more likely to deal bc they need the money more than they need the item |
|
|
Term
| besides bargain shoppers who else might say "thats not good enough" |
|
Definition
|
|
Term
|
Definition
|
|
Term
| which is true in terms of singles and couples when it comes to money |
|
Definition
| single are more prone to impulse buying than couples bc they dont have to be held accountable |
|
|
Term
| in which of the following ways are men and women different when realting to money |
|
Definition
men view the emergency fund as boring, women view it as security,
women view the emergency fund as the key to their financial plan, men view it as not being sophesticated enough
women like to hunt down deals when shopping, men like to negotiate |
|
|
Term
| what is the primary difference between an allowance and commission |
|
Definition
| allowance is paid regardless of work that gets done |
|
|
Term
| which of the following should you use with young children ages 3 to 12 to teach them about money |
|
Definition
| clear jars, and envelope system |
|
|
Term
| which of the following is not a rule of the budget meeting |
|
Definition
|
|
Term
| which of the following would not make a good accountability partner |
|
Definition
| your best friend who is always broke |
|
|
Term
| which is true about men and women |
|
Definition
| opposites attract, money represents different things to men and women |
|
|
Term
| which is true about budget meetings and marriage |
|
Definition
| budget meetings are opportunities to improve communication bc you both must agree on spending |
|
|
Term
| which of the following is a good place to get deals |
|
Definition
|
|
Term
| people avoid negotiating for what reason |
|
Definition
| they are embarrassed to ask for the deal |
|
|
Term
| why is it important to do research before going to an auction |
|
Definition
| to know if you are getting a deal, to decide your top bidding price before the bidding begins, and its easy to get carried away at an auction |
|
|
Term
| if you had no extra money but you still needed an item, what would be your opitions |
|
Definition
| offer to trade services for them |
|
|
Term
| what is a common response from salespeople if you are silent when they are talking to you |
|
Definition
|
|
Term
| if you show the seller that you are interested in the item then you have lost _____ |
|
Definition
|
|
Term
| which statement is not true about extended warranties |
|
Definition
| extended warranties are worth every dollar you spend on them |
|
|
Term
| the flow of money in a family represents the ____ under which the family operates |
|
Definition
|
|
Term
| what is a good age for kids to open their first checking account |
|
Definition
|
|
