Money
Banks pay you to put your money in them in the form of _____.
interest
If ____ is too low, the economy is overheated leading to wage increases, which cost businesses money.
unemployment
CD’s (Certificates of Deposit) are considered safe due to being backed by this group.
government
Spending on education, training, scientific research, student loans, technology, law enforcement, & national parks are all examples of this type of spending.
Discretionary Spending
The United States has the highest GDP in the world. What nation is currently second?
China
Goods used in place of one another (ex - If skis increase in price, more people will buy snowboards).
Substitutes
All decisions involve ____; all the alternatives that we give up when we choose something.
trade-offs
The United States is a(n) ___ economy.
free market
What is a majority of discretionary spending used for?
Defense
The top 10% in the nation control ___% of the its wealth.
70%
The period of expansion or contraction of GDP is known as:
business cycle
The choice you don't choose between two alternatives is known as the ____
opportunity cost.
A market that is dominated by a few large profitable firms is known as a(n):
oligopoly
Mandatory government spending includes social welfare programs like medicaid that people are "entitled to" if they meet certain eligibility requirements. They are known as _____________.
Entitlements
Monopolies can charge high prices due to lack of ____
competition.
A current interest rate on a 30-year mortgage is approximately _____%.
7%
What is a benefit of a full employment for workers?
higher wages
The total value of all final goods & services produced in the nation.
Gross Domestic Product (GDP)
A federal and state assistance program that pays for health care services for people who cannot afford them.
Medicaid
Right to work Laws have weakened these groups.
unions.
A ______ is a measurement that shows how the avg. price of a standard group of goods changes over time.
price index
Michigan’s current sales tax percentage.
6%
What type of tax is the federal income tax?
Progressive
Taxes that fund Social Security and Medicare.
FICA
A tax for which the percentage of income paid in taxes remains the same for all income levels.
Proportional tax