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What is a need? What is one example?
A need is something required in order to live. Examples include food, water, shelter, clean air, clothing, transportation.
What does GDP stand for?
Gross Domestic Product
What do interest rates represent?
The cost of money or the cost of borrowing.
What is a want? What is one example?
A want is something that adds to the quality of life, but is not necessary for life. Examples are a new phone, luxury car, designer clothing, restaurant food, jewelry, etc.
What is inflation?
Increase in the general level of prices
Scarcity is when a resource is not easily available in a certain location or period.
People with poor credit scores pay a ___________ interest rate than people with good credit scores.
Higher
What are the 3 economic resources? Otherwise known as factors of production.
Natural, Human, Capital
When does Deflation occur?
Recession and Depression
You work for a furniture manufacturer and you need lumber to produce your products, which economic resource does this fall under?
Natural
The rate banks make available to their best business customers is the...
Prime Rate
You need a new computer software to keep up with inventory of newly produced goods, which economic resource is this?
Capital
In the United States, one of the most watched measures of inflation is called the...
Consumer Price Index (CPI)
What does it mean to be considered "unemployed"?
Currently out of a job AND actively looking for work.
The most important factor economic growth is...
Money you earn and spend
What are the 4 phases of the business cycle?
What is the main cause of inflation?
When the demand for goods and services is greater than the supply
If you purchase a corporate or government bond, you are referred to as a ________.
Creditor
A factory manager oversees the production process of asphalt roof shingles, which economic resource is this?
Human (Labor)
Stock represents...
Ownership in a corporation
If you invest $3,000 into a savings account that earns 1.8% interest, how much will the account have in it after 4 years?
$3,216
What does the labor force consist of?
Anyone over the age of 16 who is currently working or looking for work.
What are the 4 sources of personal income?
Salaries, Wages, Investment income, Government payments
The U.S. Government is currently $________ in debt...
$37.85 Trillion
Jason receives a bank loan of $8,500 for a new boat. The interest rate is 4.85% and he plans to pay it off in 2 years. What is the interest amount at the end of the loan?
$824.50