Stock Market
Why are MUTUAL FUNDS a good way to invest in the stock market?
There is a huge income gap in certain countries such as India. What is an important economic goal to address to tackle poverty and improve living conditions?
Economic Growth
Legislation passed for the stated purpose of controlling monopoly power and preserving and promoting competition
antitrust law
From the American perspective, we like Adam Smith. What was his belief about self-interest?
Self-interest stimulates economic growth.
From the American perspective, we do not like Karl Marx. However, he believed in
labor theory of value
Why might a person invest all of their money in only one company on the stock market?
high risk might become a high return; lots of $$$
Some governments around the world encourage parents to vaccinate their children against various diseases such as Measles, Mumps, Rubella, and several others. Why is this a good economic/political idea?
More vaccinations means a healthier population; less people get sick
The goal of this organization is to promote a strong, stable, and efficient U.S. economy and financial system.
Federal Reserve
According to Adam Smith, economic growth is stimulated by
self-interest
The value of goods comes from labor. This is _______ _________'s idea about communism.
Karl Marx
This is a weighted average of 30 widely traded stocks on the NYSE. It's the most popular, widely cited indicator of day-to-day stock market activity.
DOW Jones Industrial Average (DJIA)
If the gov't set a price cap at $1.00/gallon of gas. Wow, this sounds great! However, why is this a bad idea?
because there will be a shortage of gas
What is scarcity?
unlimited wants but limited resources
An Inquiry into the Nature and Causes and the Wealth of Nations was published in 1776 by ________________________.
Adam Smith
All value in produced goods comes from ___________. This is the idea of Karl Marx.
labor
Corporations are owned by__________.
stockholders / shareholders
This is a market structure that is characterized by (1) a single seller, (2) the sale of a product that has no close substitutes, and (3) extremely high barriers to entry.
monopolistic market
What is the BEST type of account to save money in for retirement?
an Individual Retirement Account (IRA) such as 401K or 403B
Self-interest causes people to work hard and take risks, which benefits society. The division of labor creates greater productivity and wealth. Competition keeps prices down. Who believed in these ideas?
Adam Smith
Capitalists exploit laborers and all value in produced goods comes from labor. Whose believe is this?
This is a share of the profits that a corporation distributes to stockholders.
dividend(s)
Legislation passed for the stated purpose of controlling monopoly power and preserving and promoting competition
antitrust law
A group of friends go into business together. One of the friends handles advertising. One of them handles hiring employees. One of them handles banking. One of them handles technology. What type of business is this?
partnership
What type of economic system did Adam Smith support?
Capitalism, Free Enterprise
This is the title of Karl Marx’s book published in 1867.
Das Kapital