Economic Basics
What is the difference between goods and services?
Goods are physical products while services are things people do for others
__________ is the total value of all goods and services produced in a country in a year and is used to measure economic development.
Gross Domestic Product (GDP)
What are taxes used for?
Government services: education, military, police, firefighters, etc.
A plan that shows income and expenses over a period of time is called a…
Budget
What is gross pay?
How much you make before taxes
________________ is the desire for a certain good or service.
Demand
What percentage of the world’s countries are considered developed?
20%
Taxes on things you buy are called________.
Sales tax
What is interest?
the price paid for borrowing money
What are the three main advertisement techniques?
Pathos, logos, ethos
______________ is the amount of goods and services that is available for use.
Supply
What factors can negatively impact a country's economic development? (name 2)
Lack of natural resources
Frequent natural disasters
Climate change
Colonialism
The government requires tobacco companies to pay this because their product is harmful.
Excise Tax
When you use a debit card, does the money come out of your checking or savings account?
checking
Who was Alexander Hamilton?
Secretary of the Treasury
Who controls the economy in a command economic system?
the government
____________ are goods that are brought into the country from somewhere else.
Imports
Bob owns a house. Larry rents an apartment. Who has to pay property taxes?
Bob
(Larry's are likely included in his rent cost)
Jack wants to buy a $240 Christmas tree. He can use cash or pay with a credit card. His credit card has a 15% interest rate. How much will Jack end up paying for the tree if he uses his card?
276
(240 x 0.15= 36)
What did Hamilton create that Jefferson didn't agree with?
A national bank
Who gets to make decisions about the economy in a market economic system?
Individual producers and consumers
What is an example of a trade barrier?
Tariffs
(also embargoes if you're feeling fancy)
How old do you have to be before you can use your social security and medicare money?
65
Melissa has $3,000 in a savings account with a 3% annual interest rate. If she doesn't add or take out any more money, how much will she have in her account in 2 years?
$3,180
(3,000 x .03 =90 , 90 x 2= 180)
What is Miss Mallory's net monthly income?
$2,772