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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.
This is the term for paying someone to complete a job for you, either because you cannot do it or you do not want to do it...
Service
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
What is the term for the steady increase in the production of goods and services?
Economic Growth
You need a new computer software to keep up with inventory of newly produced goods, which economic resource is this?
Capital
Phase in which most people who want to work are working, businesses produce goods and services in record numbers, wages are good, and the rate of GDP growth increases
Prosperity
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
Long period of high unemployment, weak consumer sales, and business failures.
Depression
A factory manager oversees the production process of asphalt roof shingles, which economic resource is this?
Human (Labor)
This is the term for a product you can physically see and touch...
Good
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
Phase in which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise again.
Recovery
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