Supply and Demand
What is the law of demand?
As price goes up, demand decreases
Anywhere (physical or online) where buyers and sellers come together to trade on services or products
Market
Too much spending and economic expansion leads to more money flow, decreasing the value of money. What is this phenomenon called?
Inflation
When you take out a loan, this is the money you must pay back in addition to the amount of the loan itself.
Interest
What is an advantage to banking and using a savings account rather than putting your money under a pillow?
Savings account gains interest, you can grow your money. safer way to keep money if bank is FDIC insured
What is the law of Supply?
As Supply increases, price increases too!
Total amount of new goods and services sold in a country over a period of time
Gross Domestic Product (GDP)
This occurs when a bank lends out money but is not repaid, which can cause the bank to collapse. Also, identify the government organization that will repay depositors if this situation occurs.
Bank Crash, FDIC (Federal Deposit Insurance Corporation)
This is an economic system where the government owns most industries and theoretically, seeks to pay everyone equally for their work.
Socialism
What should you always do with a credit card balance at the end of the month?
Pay it off to avoid any interest - credit cards have high interest for balances past 1 month
The point where supply and demand meet on a supply/demand chart
Equillibrium
Economic Expansion
There is too much spending and high inflation. How could the federal reserve respond to this situation?
Raise Interest Rates
McDonalds and Burger King are owned by different people, they compete to sell their own products and make profit with little government interference in the process
Capitalism
What is a way you can save for retirement? When should you start saving?
401K, Independent Retirement Account (IRA),
As Soon as Possible!
Describe what is going on in the graph shown momentarily (slide 4)
Demand decreased while supply stayed the same, causing the equilibrium price to go down
Economic Depression
There is too little spending and high unemployment. The country is in a recession (unemployment is at 10%). How could the Federal Reserve respond?
Lower interest rates
Tariff
When filing taxes, what form will you need to show how much you earned and already paid in taxes at your job the past year?
W-2 Form
When there is too much supply and too little demand, there may be a:
Surplus
Unemployment Rate
Look at slides 9 and 10. Based on the graphs, how could the US President and Congress respond to the economic situation in 2020 using Keynesian Policy
Multiple possible answers - any government spending that seeks to increase spending and employment - so stimulus checks, job programs, etc.
What can be a problem associated with globalization?
"Race to the bottom" - companies locate factories in countries that allow for lower wages, environmental concerns, other answers may work too (teacher discretion)
Stocks - more risk, more reward
Bonds - low risk, less reward