Types of Economies
The system that a community uses to manufacture, transport and sell goods and services. This system is influenced by the scarcity of resources
economy
What is a stock?
A tiny piece of a publicly traded company
Which type of bank account allows a person to deposit money and gain a small amount of interest?
Savings account
A company that allows individuals to own shares is known as a " ______________"
Publicly Traded
Manufactured by a company and offered for sale to the public. These are usually tangible.
Goods
Free countries use a economic system that allows citizens to own their own businesses and compete with each other for profit. This is called
Capitalism
Companies that don't allow people or businesses to buy shares in their company are ________
Private or Privately owned
withdrawl
Many large companies __________________ their products, meaning that they manufacture them on the assembly line and produce their goods in very large numbers. Enough for everyone.
Mass Produce
A __________________ is something that a business provides for a fee that is usually intangible such as a haircut or legal advice
Service
______________________ is a part of a capitalist economy. This is the idea that people can own their own businesses the government won't interfere with production or sale of products.
Free Enterprise
A ____________________ is a investment vehicle that allows for more diversification. When you buy shares, you're actually getting a share in hundreds of companies in a particular industry
Mutual fund
A ______________ account is a bank account that doesn't usually pay any interest, but it allows the account owner to use a debit card just like a credit card. They can also use a checkbook to pay bills, buy groceries etc.
Checking
A company that is publicly traded but smaller market value is known as a ________________
Small Cap company
Their are 3 types of Raw Materials. Name all 3
Agricultural
Animal
Mined or Mineral
Nations with very little economic freedom use a "____________________". People are generally not allowed to own businesses, farms or transportation. Their businesses are owned and controlled by the state (government).
Command Economy
An economic indicator made up of the 30 biggest companies in the NYSE
Dow Jones Industrial Average, DOW 30 or DOW
Why would people rather put their money into a savings account than invest it in the stock market.
The savings account has almost no risk, where as stocks can lose value.
Raw Materials almost always come from ________________. We find these resources in the world around us.
Natural Resources
What is one of the main benefits of Capitalism and a Free Market?
Competition between companies = better product and lower price
Private ownership encourages innovation and new ideas / tech
Personal satisfaction and pride in ownership of the company
Many companies share their profits with share holders in the form of a ___________ payment every quarter
dividend
The amount of money that a person has in either a savings or checking account is called the
account __________
balance
Natural resources that can be quickly or easily reproduced are known as ________________
Renewable
One way to control the goods and services that are imported into a country is with ______________. This is like a tax on the imports and protects industries/workers in your own country
tariffs