Intro to
Economics
Economics
Spending money for clothing instead of going to a movie is an example of a
Trade Off
A good that is sent to another country for sale is a(n)
Export
What is a tax
A mandatory payment collected by the government
Companies sell stocks to...
Raise more money from investment
The paper bills and coins used as money in a society are called
Currency
private property and the profit motive are characteristics of what kind of economy?
Market/Capitalist Economy
A good that is brought in to another country is a(n)
Import
Name one example of a tax
-Income tax
-Property tax
-Sales tax
-Excise tax
-State tax
Why is it important to diversify your investments?
So that you do not lose all your money if an investment goes wrong
This item allows a person to buy goods based on their promise to pay at a later date
Credit Card
In a command economy decisions are made according to what?
The Government
A trade deficit is
Importing more than exporting
When the countries budget has a deficit that means...
The government had more expenses than revenue
When deciding what investment to make you must considerer...
Risk vs. Reward
which is not one of the types of investment risk?:
Inflation rate risk
Credit risk
Time risk
Debit Risk
Debit Risk
What is an entrepreneur?
An individuals who puts together the factors of production to create a new businesse
What is Globalization?
The process of increasing integration between the world's economies, cultures, and populations.
What does it mean to have a balanced budget?
Revenues = Expenditures
What is the Inflation Rate Risk?
The inflation rate is higher than the rate of your investment, leading to a loss of value
What is a stock?
A share of ownership in a company
What are the 3 basic economic questions?
What to produce
For who to produce
How to produce
The relationship between a nation's imports and its exports is referred to as the
Balance of Trade
What is the United States national debt?
-$800 Billion
-$3.5 Trillion
-$16.4 Trillion
-$36.1 Trillion
-$36.1 Trillion
In the stock market, a bull market refers to...
When the market is doing well and people are optimistic about the economy
Who is on the $20 bill?
Andrew Jackson