Practical Economics
What factor is the best predictor of improving an individuals career earnings?
level of education
What is the main business of a bank?
to sell money (loans)
what is the amount someone would be willing and able to buy over a range of prices?
demand
What investment option has returned an average of over 6% on invested money over the last 200 years?
stock market
Why is it beneficial for individuals to take loans for things like homes and cars for the shortest term possible?
you pay less interest
What percentage of your earnings do experts suggest you save for retirement and children's education expenses?
20%
What are the three factors of production that allow entrepreneurs to offer goods and services to consumers?
land, labor, capital
the loss of potential gain from use of money, time, or resources when one choice is made rather than another
opportunity cost
What investment option is least advantageous to an investor trying to save for retirement?
bank savings account
Which economic system does America have today?
Mixed Economy
How many years do you need to keep a brand new car for it to become a better investment than both leasing and buying a similar used version?
10 years
The name of electronic business or or exchange conducted over the internet?
e-commerce
person designated to take the ownership of an asset if the owner of the asset dies?
beneficiary
a loan taken out by a company. Instead of going to a bank, the company gets the money from investors who they pay interest to using an annual rate. this type of investment is called
a bond
What factor most often influences consumer purchasing decisions?
price
The amount of your home you have actually paid for or own is called
equity
What is the formula to determine the profitability of a business?
fixed costs + variable costs - sales revenue = profit
The name for the total value of all final goods and services produces in a particular economy per year
Gross Domestic Product
Investors who use equity to build savings are investing in
Property, homes
ability to afford desirable possessions improve a persons
standard of living
What is the worst way to owe money in society today
credit card debt
High start-up costs, inefficient price and output, complex technology are all barriers to entry creating
imperfect competition
The organization created by the US government to stabilize the American banking system in the early 1900s?
Federal Reserve System
bank investment products that holds your funds for a set period of time. In exchange, the bank pays you a fixed annual percentage yield. This investment is called
CD or Certificate of Deposit
List two of the top three areas the federal government of the US spends tax money on
Military or Defense
Healthcare
Social Security