Economies
Money
Employment & Business
Investment
Taxation
100
1. The study of the economic behavior of small units, like households or businesses
2. The study of the behavior and decision making of entire economies
1. Microeconomics
2. Macroeconomics
100
Adam Smith term describing the self-regulating nature of the marketplace
Invisble Hand
100
The level of economic prosperity
standard of living
100
Amount of money borrowed on a loan
Money paid for use of borrowed money
Redirecting resources to create future benefits
Principal
Interest
Investment
100
Government official who determines the value of property
tax assessor
200
Economy that relies on habit, custom, or ritual to address economic issues
An economic system with some government involvement
Traditional
Mixed
200
1. Time when payment to bondholder is due
2. Budget for major projects
1. Maturity
2. Capital budget
200
What age group in the U.S. has the largest percentage of its members living in poverty?
children
200
Issued to finance public projects
Issued by corporations to raise money
Municipal Bond
Corporate Bonds
200
Define progressive tax and regressive tax.
Progressive Tax (federal income tax)- % paid increases as income increases
Regressive Tax (sales tax is considered regressive) - % paid decreases as income increases
300
A free market, but allowing some government intervention
Another name for a centrally planned economy
Government owns all resources and production factors
Mixed economy
Command economy
Communism
300
a) Lets you buy now & pay later
b) Withdraws money from your checking account
a) credit card
b) debit card
300
What is considered a normal unemployment rate?
4-6%
300
pools money from many investors
mutual fund
300
The major source of revenue for most state governments
Sales and individual income taxes
400
Total value of all final goods and services produced in a particular economy in a year
Gross Domestic Product (GDP)
400
List the following types of money:
a) A good used as money with intrinsic value
b) Has value because of a government order
c) Can be exchanged for valuable goods (e.g., gold)
a) commodity money
b) fiat money
c) representative money
400
What doctors and bankers provide
Goods/services provided for free or at greatly reduced price
Services
In-Kind Benefits
400
According to the table, if the interest rate on this account is 10 percent, how much money will you have in the account at the end of the fourth year?
$146.41
400
What are the main sources of revenue for local governments?
Property taxes, local sales taxes, service fees
500
Term for a period of macroeconomic expansion followed by a period of contraction
Term for ALL money users - Savers, borrowers, and financial intermediaries
Business Cycle
Financial System
500
Characteristics of Free Enterprise
Competition, Profit Motive, Private Property, Economic Freedom
500
Define the following types of unemployment:
Frictional, Cyclical, Structural
Frictional Unemployment - People transition from one job to another (willingly)
Cyclical Unemployment- Unemployment rises in downturns, falls when economy improves
Structural Unemployment - Skills don't match jobs available
500
What is compound interest?
What is a return on investment?
Compound interest - Interest paid on both the principal and the interest it earns
Return - Money received from an investment
500
What makes the federal income tax a progressive tax?
The higher the income, the higher the percentage paid in tax