Vocabulary
An amount of money borrowed for a certain time
Loan
Which of these options are the three factors of production?
1. labor, land, capital
2. energy, skills, people
3. money, gold, silver
1. labor, land, capital
What plan helps you know how much money you need to spend and save?
Budget
What are fringe benefits?
Benefits from a job like health insurance or retirement plans
What are some things people have used as money in history?
Grains, cocoa, animal skins, salt, gold
A paid plan that protects a person from the cost of injury or loss
Insurance
Give one example of a good and one example of a service
physical products like food, clothing, and electronics, and intangible actions like teaching, healthcare, and repairs
What happens to the price if there is too much of something but not enough people want it?
Price goes down
What plan helps you know how much money you need to spend and save?
Budget
What happens if too many people withdraw their money at once?
The bank may run out of money and not be able to give everyone their cash
A job which you do as your life's work
Career
What are the three big economic decisions every country has to think about?
1. What to make? How to make it? Who gets it?
2. When to buy? What to sell? What to give?
3. Which person? What company? What job?
1. What to make? How to make it? Who gets it?
Give one example of a need and one example of a want
Things you need to live like (water, food, shelter, clothing) and things you don't need to live (ice cream, games, technology)
What is an example of a fixed expense?
Car insurance, phone bills, or rent
The government insures deposits up to $______ per account through the FDIC (Federal Deposit Insurance Corporation)
$250,000
The coins and paper bills used as money
Currency
_____ is how much of something is available, while ______ is how much people want it.
Supply and demand
What is the circular flow of money?
1. Money moves between people, businesses, and the government.
2. Money moves between jobs, families, companies.
3. Money moves between cities, states, and countries.
1. Money moves between people, businesses, and the government.
What is an example of a variable expense?
Food, gas, or utilities (water, electricity)
What is the term for money that has value because the government says it does, rather than being backed by gold
Fiat money
An amount of money charged for borrowing money
Interest
What happens to the price when many people want something but there isn't enough?
The price goes up
What are two main things that decide prices in a market economy?
Supply and demand
Name one type of insurance a person might need?
Health insurance, car insurance, home insurance, or life insurance
What is one characteristic of money
Durable, portable, divisible, stable in value, accepted, scarce