ECONOMICS
This is the study of how money is created, used, and exchanged.
What is economics?
This is one of the four factors of production and refers to human work and effort.
What is labor?
Any choice involving money or resources can be described as this.
What is a financial decision?
This is money earned from working a job.
What is earned income?
This is a type of income that is paid as a fixed yearly amount rather than by the hour.
What is a salary?
This refers to how money, goods, and services move between people, businesses, and government.
What is the economy?
When a business buys machines to help produce goods, it is using this factor of production.
What is capital?
This means what you give up when making a choice.
What is opportunity cost?
This type of income is earned with little active work.
What is passive income?
When prices rise over time and money loses purchasing power, this is occurring.
What is inflation?
This system involves trading goods or services without using money.
What is a barter system?
This factor of production includes natural resources used to produce goods and services.
What is land?
You have enough money to buy a new video game today, but you are also trying to save money for a car. What are you trying to reach by saving and not spending?
What is a financial goal?
This type of income is earned through businesses making a profit for you.
What is investment income?
A worker is paid $20 for every hour they work. What type of compensation are they receiving?
What are wages?
In this type of economy, prices are primarily determined by supply and demand.
What is a market economy?
This occurs because people's wants are unlimited while the resources available to satisfy those wants are limited.
What is scarcity?
These are the 4 steps to creating a plan to reach your financial goals.
What is know your current situation, set a financial goal, choose strategies, and review and revise?
When you buy stock, you become this in the company.
What is a partial owner?
A person's savings account earns 2% interest while inflation is 4%. Even though the account balance is increasing, what is happening to the purchasing power of the money?
What is it losing purchasing power?
A government uses this policy when it changes how it collects and spends money in order to influence the economy.
What is fiscal policy?
A company decides to open a new factory because it believes it can make a profit by producing a product that consumers want. Which factor of production is most directly represented by the person making this decision?
What is entrepreneurship?
Two people are deciding whether to purchase a new car. Instead of one person making the decision alone, they discuss their income, expenses, and goals before deciding. What concept are they using?
What is shared decision-making?
This type of stock is generally associated with a stable, well-known company.
What is a blue-chip stock?
A person understands how their financial decisions affect their money over time, sets realistic goals, considers limited resources, and makes informed choices about saving and spending.
What is financial literacy?