Economic Thinking
This measures the total value of goods and services produced in a country.
What is GDP?
This type of decision compares costs and benefits before choosing.
What is cost-benefit analysis?
Money earned from a job, such as hourly pay, is called this.
What are wages?
This government agency insures bank deposits.
What is the FDIC?
A plan for managing income and expenses is called this.
What is a budget?
This economic concept explains how prices are determined by buyers and sellers.
What is supply and demand?
Buying something immediately instead of waiting demonstrates this concept.
What is instant gratification?
The amount of money you take home after taxes is called this.
What is net income?
Putting money aside regularly before spending is called this strategy.
What is paying yourself first?
Borrowing money with the promise to repay it later is called this.
What is credit?
When prices rise over time and reduce purchasing power, this is happening.
What is inflation?
Advertising and peer pressure are examples of these influences on spending.
What are social influences?
This tax funds Social Security and Medicare.
What is FICA?
This type of investment represents ownership in a company.
What are stocks?
This three-digit number represents your creditworthiness.
What is a credit score?
Choosing one option over another means giving this up.
What is opportunity cost?
Saving money instead of spending it right away is an example of this.
What is delayed gratification?
This document reports your yearly earnings and taxes withheld.
What is a W-2?
The relationship between risk and reward in investing is known as this.
What is risk vs. return?
Interest rate charged on borrowed money is abbreviated as this.
What is APR?
This type of policy is controlled by the Federal Reserve and impacts interest rates and money supply.
What is monetary policy?
This type of risky behavior involves chance with little control, unlike investing.
What is gambling?
Higher education or training generally leads to this over a lifetime.
What is increased earning potential?
This concept explains how money grows over time through interest on interest.
What is compound interest?
This illegal act involves stealing personal financial information.
What is identity theft?