Wealth & Capitalism
The ownership of valuable resources or assets
Wealth
__________ measures how much consumers are willing and able to buy
Demand
________ = Revenue minus costs
Profit
_________ is a general rise in prices over time.
Inflation
Setting aside money for future use
Saving
Which of these is an example of an asset?
1) Credit Card
2) Loan
3) Stock
4) Bill
Stock
What happens to price when demand increases and supply stays the same?
Price increases
Land, labor, capital and entrepreneurship are all factors of ___________.
Production
Name one phase of the business cycle.
Expansion, Peak, Recession, Trough
Using money to buy assets expected to grow in value
Investing
What economic system is based on private ownership and voluntary exchange?
Capitalism
What term describes the price where supply equals demand?
Equilibrium
What do businesses produce to create wealth?
Goods and services
What happens to purchasing power during inflation?
It decreases
What is risk in investing?
The chance of losing money
What term describes using limited resources to satisfy wants?
Economics
A ____________ is when quantity demanded exceeds quantity supplied.
Shortage
What type of cost does not change with output?
Fixed cost
What type of policy involves government spending and taxes?
Fiscal Policy
Earning returns on previous returns is an example of __________.
Compound Interest
What measures the total value of goods and services produced in a country in one year?
Gross Domestic Product (GDP)
What usually happens to quantity supplied when prices rise?
Quantity supplied increases
_____________ is the output per worker or unit of input.
Productivity
What institution controls interest rates in the U.S.?
The Federal Reserve
"Money today is worth more than the same amount in the future" is an example of ______________.
The Time Value of Money