Fundamentals
The study of how societies make choices about allocating resources to satisfy wants and needs.
Economics
The price at which quantity supplied equals quantity demanded.
Equilibrium Price
It's features are private ownership, voluntary exchange, competition, and consumer choice.
Free Market
This is the central bank of the U.S. responsible for managing the nation's monetary policy.
The Federal Reserve
The advantage of this type of account is that it is a safe place to earn interest and save money.
A Savings Account
The fundamental economic problem: limited resources vs. unlimited wants.
Scarcity
What happens to prices when supply increases and the demand remains the same?
Prices Drop
How do banks make money?
The dual mandate of the Federal Reserve is
__________________ and ___________________.
maximum employment and stable prices.
A disadvantage of a Credit Card account is ....
It charges high interest rates
or
It can lead to much debt if not managed carefully
Involves input resources like land, labor, capital and entrepreneurship.
Production
or
Factors of Production
What happens to prices when demand increases and supply remains the same.
Prices Rise
Money backed by government decree is called....
Fiat money
or
Fiat currency
Which parts of the US Government handles Fiscal Policy?
Congress and the President
People send money to this financial institution to protect themselves in case of accidents or costly repairs.
Insurance Companies
Involves procurement of materials, production into goods, transporting goods and managing the flow of materials.
Supply Chains
Supply chain disruptions can cause prices to .....
Increase
It is like a bank but is owned by it's members.
What are the main tools used by Congress and the President when making Fiscal Policy?
Taxes
and
Government Spending
As a person consumers more of a good, the additional satisfaction from each unit decreases.
Law of Diminishing Marginal Utility
What you give up when you make an economic choice.
Opportunity Cost
Government tariffs or taxes can cause final prices to...
increase
This type of Financial Institution is used for buying stocks, bonds, ETFs, and mutual funds to make your money grow.
Investment Firms
to (expand) or (contract) the money supply.
raise
and
contract
Name one of the main products that New Mexico exports.
Computer Technology Components
Agricultural Products
Energy