Supply & Demand
The law stating that as the price of a good increases, the quantity demanded decreases.
What is the Law of Demand?
A card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase.
What is a debit card?
A market structure dominated by a single seller selling a unique product with no close substitutes.
What is a monopoly?
To track income and expenses, prevent overspending, and help reach financial goals.
What is the main purpose of a budget?
The amount earned before taxes and deductions.
What is Gross Pay?
The point at which the quantity supplied perfectly matches the quantity demanded.
What is market equilibrium?
The cost of borrowing money, usually expressed as a yearly percentage rate (APR).
What is interest?
A market structure in which a few large firms dominate the market, such as the cellular service industry.
What is an oligopoly?
Needs are necessary to live and work, while wants are nice to have but not essential.
What is the difference between needs and wants?
Take-home pay after taxes and deductions.
What is net pay?
A government-imposed legal maximum price that can be charged for a good or service, such as rent control.
What is a price ceiling?
A numerical expression based on a level analysis of a person's credit files, representing their creditworthiness.
What is a credit score?
A market structure with many firms selling products that are similar but differentiated, like fast food or clothing.
What is monopolistic competition?
Name two benefits of making a budget.
Prevents overspending, helps save money, reduces stress, prepares for emergencies, tracks spending.
Is rent a fixed or variable expense?
What is a Fixed expense.
The term used to describe a good for which demand increases when consumer income rises.
What is a normal good?
The golden rule of investing that involves spreading out investments to reduce overall risk.
What is diversification?
The theoretical market structure featuring an infinite number of buyers/sellers, identical products, and perfect information.
What is perfect (or pure) competition?
Spending more money than you earn
What is a budget deficit?
Name three variable expenses.
Gas, groceries, concert tickets, maintenance, repairs.
A measure of how responsive consumers are to a change in price.
What is elasticity of demand?
An investment pool that allows small investors to buy a diversified portfolio of stocks or bonds managed by a professional.
What is a mutual fund?
A formal agreement among competing firms in an oligopoly to illegally fix prices and production levels, like OPEC.
What is a cartel?
Spending less money than you earn
What is a budget surplus?
Name three fixed expenses of car ownership.
Car payment, insurance, registration.