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Definition
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| who has the resources? (4 things) |
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Definition
1. natural resources
2. human capital
3. physical capital
4. economic patterns |
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Definition
| ability to produce more given set resources |
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| ability to produce more efficiently (give up less) |
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Term
| what do we have to look at for comparative advantage? ______ _____ |
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Definition
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| which advantage do we have in USA |
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Definition
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| why don't we produce everything ourselves? |
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Definition
| b/c other nations have comparative advantage |
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Definition
| gov interference w/ trade |
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Definition
| tactic of cutting off trade w/ a nation to cripple their economy |
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Term
| which trade barrier is used when gov policy violates UN policy? |
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Definition
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Term
| which trade barrier leads to compliance (agreement)? |
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Definition
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Term
| what happens to cost of imports if we limit trade? |
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Definition
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Term
| how does limiting trade affection competition? |
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Definition
| it limits competition. american companies lose incentive to produce efficiently |
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Term
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Definition
government actions that restrict international trade, often done with the intent of protecting local businesses and jobs from foreign competition.
typical methods of protectionism are import tariffs, quotas, subsidies or tax cuts to local businesses and direct state intervention. |
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Term
| (3) arguments for protectionism |
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Definition
1. infant industry
2. protect jobs
3. national security |
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Term
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Definition
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Term
| with trad agreements, nations reduce ____ to encourage trade |
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Definition
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Term
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Definition
1. receives money
2. saves money
3. lends money |
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Term
| 4 most common ways to save money |
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Definition
1. savings account
2. checkings account
3. money market account
4. certificates of deposit |
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Term
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Definition
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Term
| interest on savings & checkings |
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Definition
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Term
| allow you to save & write a small # of checks |
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Definition
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Term
| interest on money market account |
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Definition
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Term
| has a guaranteed rate of interest |
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Definition
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Term
| period of time for funds to not be removed with a CD |
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Definition
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Definition
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Definition
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| consumers may borrow from (3) |
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Definition
1. a bank
2. a private lender.
3. credit card |
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Term
| a type of loan used to buy real estate |
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Definition
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Term
| how much % to put down in cash for mortgage |
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Definition
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Term
| how long does a mortgage take |
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Definition
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Term
| mortgage should not exceed ____ of monthly income |
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Definition
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Term
| difference b/w Adjustable Rate Mortgage (ARM) and Fixed Rate Mortgage (FRM) |
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Definition
| ARM interest adjusts to the market while FRM is always same |
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Term
| which mortgage has better deals |
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Definition
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Term
| when you use a credit card, you borrow money at the ____ ____ _______ |
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Definition
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Term
| when do you receive a bill for your credit card |
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Definition
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Term
| if you pay the bill in full, you ... |
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Definition
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Term
| if you do not pay in full, you... |
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Definition
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Term
| lenders will consult a _____ ____ before deciding on your application |
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Definition
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Term
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Definition
| a service that specializes in collecting financial info about consumers |
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Term
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Definition
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Term
| 2 disadvantages of a low credit score |
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Definition
1. limit on amt of money you may borrow
2. higher interest rates |
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Term
| do credit cards charger high or lower interest rates than if you borrowed froma bank |
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Definition
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Term
| Annual Percentage Rate (APR) |
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Definition
| total cost of credit expressed as a yearly percentage |
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Term
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Definition
| occurs when people exchange their money for something they expect to increase in value over time |
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| 1 common type of investment |
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Definition
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Term
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Definition
| a share of OWNERSHIP in a company |
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Term
| difference between a low purchase price & high selling price |
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Definition
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Term
| stock sold at a lower price than it was purchased for |
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Definition
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Term
| why are mutual funds a good investment? |
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Definition
1. they diversify
2. spread investment around
3. reduce risk |
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Term
| the ease w/ which investment can be converted to cash |
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Definition
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Term
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Definition
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Term
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Definition
| mutual funds, stocks, CDs |
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Term
| liquidity and interest are _____ related |
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Definition
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Term
| to be insured you must pay a ____ _____ |
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Definition
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Term
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Definition
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Term
| what do you get in return for your premium |
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Definition
| the company promises to compensate you in the event of an accident |
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Term
| if you remain accident-free, the company ... |
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Definition
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Term
| if you have an accident, the company ... |
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Definition
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Term
| how does the company make up for losing profit |
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Definition
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Term
| if you drive your friend's car, are you usually covered? |
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Definition
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Term
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Definition
| covers damage to your car regardless of fault |
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Term
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Definition
| pays for all types of damage, vandalism, theft, & natural disorders |
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Definition
| covers accidents that damage other perosn's property |
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Term
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Definition
| an amount of money you must pay before your insurance kicks in |
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Term
| health insurance covers (3) |
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Definition
1. preventative care
2. hospitalization
3. prescriptions |
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Term
| #1 cause of personal bankruptcy in the US |
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Definition
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Term
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Definition
| protects your home & its contents |
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Term
| is property insurance required for you to get a mortgage loan? |
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Definition
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Term
| what does renter's insurance protect |
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Definition
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Term
| do most policies cover floodings? |
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Definition
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