Budgeting
Labor and Wages
GDP
Inflation/Deflation
Misc
100
Give the budget equation
income - expenses = net income/loss
100
Dave is a plumber. He had to receive special training, job experience, and certifications for his job, but not a college degree. What category of labor does Dave fall under?
skilled
100
GDP measures economic performance only within what time period?
a year/annual
100
What major event in US history made the federal government realize it needed to take a more active role in regulating the economy?
The Great Depression
100
What signals that the equilibrium wage has been reached?
double jeopardy: ___________________ countries have historically experienced more economic growth.
There is neither an excess supply nor an excess demand for workers
double jeopardy: capitalist
200
Name a short-term budget goal
an intermediate budget goal
and a long-term budget goal
short term:
purchase a new phone
take a spring break vacation
intermediate:
get married
buy a car
long term:
send kids to college
retire
200
What defines being "unemployed"?
You are capable of working and actively seeking work, but are unable to find work
200
What is the name of studying a large economy as a whole?
macroeconomics
200
What does FRS stand for and what does it do?
double jeopardy: President Hoover thought the Great Depression would resolve itself and the government didn't need to interfere in the economy to fix it. What type of leadership was this?
Federal Reserve System
central bank of the US- controls money flow/monetary policy (influencing the amount of money and credit in the economy) and credit
Double Jeopardy: Laissez-Faire
200
What is the net worth equation?
assets - liabilities = net worth
300
Give an example of a fixed expense and a varied expense
fixed:
rent
car payment
phone bill
loan payment
varied:
gas
groceries
water/electric bill
maintenance on home, etc
300
Name an accurate reason for declining union involvement in modern times:
Right to work laws
Blue-collar areas on the decline
the Unions are reaching all their goals
new workers don't have Union allegience
300
Define GDP and what it stands for.
Double Jeopardy: What is the best measure of a nation's standard of living?
Gross Domestic Product-
the dollar value of all final goods and services produced within a country's borders within a year
Double Jeopardy: GDP per capita (per person)
300
True or false: Businesses usually experience a surplus of goods during inflation because people are waiting to buy.
True or false: People usually panic buy during deflation because they're afraid there will be a shortage of cheap goods.
false
false
300
Explain two valid benefits of being part of a union:
collective bargaining
wages and benefits
working conditions
job security
strikes/mediation/etc
400
An unexpected expense could be an example of a _________________ ___________________:
budget killer
400
Tara is a Walmart checker. She is replaced by an automated checking machine. What type of unemployment is she experiencing?
structural- when a worker's skills don't match the jobs available
400
The first major economic goal for all countries is to:
Promote economic growth.
400
Historically, what is the first thing the FRS does when the economy is not doing well?
The FRS would buy goods from private sellers, so the sellers would have more money to spend and the FRS would have a good of value
400
Cheryl applies for a job at State Farm. She only has a high school diploma.
A different candidate with a bachelor's degree and 2 years of office experience is chosen over Cheryl.
What is the name of the theory this demonstrates?
Signaling theory- employers are more likely to choose candidates who demonstrate superior ability or skills.
500
Name all 5 categories on Maslow's Heirahcy of Needs:
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500
Explain what it means when economists say the economy is at "full employment":
There is no cyclical unemployment.
Usually, during full employment, there is still an unemployment rate of around 4.5%
500
Why is real GDP a better measure of economic performance than nominal GDP?
double jeopardy: name two things not included in GDP
real GDP adjusts for inflation
double jeopardy: intermediate goods/non-production goods/used goods/non-tangible goods (stocks)/non-market goods (housework)/illegal activities
500
What is the name of the process of buying and selling Treasury securities? (such as gov. bonds, gold, oil, etc.)
Open Market Operations
500
The US shifted from a _____________________ market in the 1800s to a _______________________ market in the 1900s.
Right now the US is shifting from a _________________________ market to a __________________________ market.
agricultural, industrial
industrial/manufacturing, service