Need to know better!
Is it okay to make an online purchase if you're on unsecured Wi-Fi, as long as you log off as soon as you're done?
No, people could steal your identity and commit fraud.
How often should you create a budget?
Monthly
What is inflation?
An increase in the general price level of goods and services
What is the theory of laissez-faire economics?
Government has no role in Economics (hands-off)
What is the relationship between unemployment and inflation?
Inverse relationship - one goes up, the other goes down
Creating a budget, having clear money goals, and slowing down to think through a purchase are all practices of a:
Smart Consumer
FDR passed the New Deal because of the Great Depression in the 1930s. What was the purpose of this program?
Promote economic recovery and social reform
What is a tariff?
A tax on an imported good - money goes to the government
Accurately describe an import and export
Imports are goods made elsewhere, sold in the US, exports are goods made within the US, sold in other countries
Define Stagflation:
Time period where economy is struggling or stagnant, unemployment and inflation are high
Although the majority of Americans think budgeting is important, about ____ of Americans actually use a budget.
35%
Why is tracking your expenses throughout the month important?
Gives you insight into whether you are sticking to the budget you set
Which of the following best describes a recession?
A period of decreasing economic activity
Which option accurately describes microeconomics?
Individuals and specific businesses and their spending habits
What is the difference between Medicare and Medicaid?
Medicare helps primarily the elderly that cannot work, Medicaid helps those in economic distress
Personal Finance is 20% head knowledge and 80% _________________.
Behavior
What is the envelope system?
Method of budgeting - uses envelopes labeled w/ specific categories - cash
What is a monopoly?
A market structure with one seller
Why does every business need a production possibilities curve?
To figure out maximum profit and production capacity
If the price of pizza increases, which of the following would you expect to happen to the quantity demanded of pizza?
The quantity demanded will decrease.
What are the four walls?
Food, utilities, shelter, transportation
Which of the following best describes opportunity cost?
The value of the next best alternative forgone
Which of the following is an example of a positive externality?
Demand for Education and training programs
Define real GDP per capita:
Reflects each person's share of real GDP - GDP divided by population
Suppose the supply of a good is perfectly inelastic. This means that:
The quantity supplied is fixed regardless of price