Economics Final Review pt.1

Personal Finance

1

This type of interest makes your money grow faster.

Compound

2

People on this feel the effects of inflation the most.

A fixed income

3

This is the amount you pay towards a claim before insurance starts to pay.

A deductible

4

This means investing in a variety of assets, spreading and reducing risk.

Diversification

5

This type of fund offers you diversification.

Mutual Fund

Market Signals

1

When a store increases the price of an item, this means that item is under a ________.

Shortage

2

When a store decreases the price of an item, this means the item is under a ________.

Surplus

3

This "e" word is what stores are trying to achieve when they increase or decrease prices.

Equilibrium

4

A worker can expect their wages to do this when there is a shortage of workers.

Wages will increase

5

Sometimes businesses offer discounts to individuals. In Economics, we call this price discrimination. Name one example of such a discount.

Senior discount / Student discount / Military discount / Teacher discount

Taxes

1

This is the type of tax system we have in the United States.

Progressive

2

Several taxes are taken out of your paycheck each go-round. Name one of these taxes.

Income tax / social security / medicare

3

This is an example of an indirect tax.

Sales Tax

4

Tariffs are a type of tax that impacts items made in other countries that we buy here in the U.S.A., and those goods are called imports. If there are high tariffs, how would that impact the number of imports?

Decrease the number of imports

5

Tariffs are a type of tax that impacts items made in other countries that we buy here in the U.S.A., and those goods are called imports. What impact do tariffs have on the price of imports?

Increases the price of imports

Most Missed

1

This savings vehicle allows you to earn more interest than a savings account AND is backed by the US Government. Think war time!

Savings bonds

2

This law states that there is an inverse relationship between price and demand.

Law of Demand

3

Land, Labor, and Capital are this three word phrase.

Factors of Production

4

Permanent condition - limited resources, unlimited wants and needs

Scarcity

5

This means how sensitive demand is to changes in price.

Elasticity

Famous People

1

Adam Smith said this thing "guides the free market".

Invisible Hand

2

This law, named after a Congressman from the 1890s, outlawed monopolies.

Sherman Anti-Trust Act

3

Mark Zuckerburg, Kylie Jenner, and Bill Gates are each an example of this.

Entrepreneur

4

The current President, Joe Biden, is in charge of this kind of economic policy.

Fiscal Policy

5

Mr. Cain has a $500 deductible on his car insurance. He has a claim for $4,000. How much does he have to pay?

$500