What is Economics
The central concept in economics regarding how people cope with the problem of not having enough resources
What is scarcity?
People such as the Australian Aborigines and Inuits often hunt, fish and barter as opposed to having defined jobs or businesses. What type of economy do they exist under
What is a traditional economy?
These show a listing of the various quantities of a particular product that a producer would supply at all possible prices in the market
What is a supply schedule or supply curve
The most common form of business organization in the US. Often a business owned by a single individual
What is a sole proprietorship?
This is a way to measure the size and health of a country's economy. It's like a giant scorecard that adds up the value of everything a country produces in a specific time period
What is GDP (Gross domestic product)?
Adjusting interest rates to limit inflation to 2% while also keeping unemployment as low as possible are the dual goals of this organization
What is the federal reserve bank?
What is the name for the government sponsored retirement plan
social security
A product that lasts 3 years or more is referred to as what type of good
What is a durable good
A country that has a central governing authority that makes all major economic decisions has what type of economy
What is a command economy?
Name two factors that can cause a change in the supply of a product to go up or down
cost of resources, productivity, technology, taxes, government subsidies, government regulations, number of sellers
A business jointly owned by 2 or more persons.
What is a partnership?
Give on examples of what a country's GDP includes
Consumer spending, government spending, exports and business investment
What retirement investment vehicle allows you make profits on your investments tax free
What is a Roth IRA?
What is the difference between a bear market and a bull market?
bear- not great. stock prices low, lousy economic news- recession
bull- positive economic trends, stock moving upward
A tool or good such as machinery or equipment that is used by businesses to produce a product
What are capital goods?
Name a country that has a command economy
USSR, North Korea, Cuba
As the price of a good or service increases, the quantity demanded decreases, and vice versa. What is this referred to as?
What is the law of demand
A form of business organization, recognized by law as a separate legal entity. These account for 20% of all businesses in the US
What is a corporation?
True or false- GDP includes government benefits such a welfare or social security payments?
False- those are transfer payments, not part of GDP
What is the name for the Landmark School "savings bank" that we draw 4% from each year to fund the operating budget of the institution
Endowment
If the stock market does relatively well over a long period of time, your long term investments can result in much more money than you put into them. This is because of what economic concept
compounding interest
Some products that are very necessary and functional are inexpensive, yet other non functional goods are very expensive. What do economists call this concept?
What is the paradox of value?
3 countries that have a market or mixed economy
US, GB, Canada...
What are the 4 factors of production?
Land, labor, capital, entrepreneurship
Business investment that involves renting or leasing another successful business model. Think coffee or fast food businesses
What is a franchise?
What is the trickle down theory in economics?
decreased taxes on the wealthy= more spending and thus job creation and rising wages
Name two jobs that offer a traditional retirement plan
public school teaching. police/fire post office, armed forces
What is APR and what is it usually associated with?
annual percentage rate- credit cards
Shoes, clothing and automobiles are all examples of what type of goods?
What are consumer goods
An economic system in which private citizens own and use the factors of production for their own profit or gain is called
What is capitalism?
What is opportunity cost?
Something that helps determine the true economic cost of a decision, often used to evaluate whether an investment or action is worth the trade-off. Ex. Drake building
An organization that works in a businesslike way to promote the interests of it's members, rather than seek financial gain for it's owners. There are thousands of these in the US
What is a non profit?
What is the bubble up theory in economics?
Increased aid to the less fortunate = more spending which stimulates the economy
An income stock offers two ways in which you might make money. What are they?
stock rises, dividends
explain the difference between social causation and social drift
social causation- poverty or a tough economic situation leads to mental health issues
social drift- a decline in mental health causes people to drift into poverty