Circular Flow & Labor Markets
markets where productive resources are bought & sold
What is the Factor Market?
a wage floor placed above the equilibrium wage
What is minimum wage?
A plan designed to help manage money by monitoring income and tracking expenses is called a
What is a budget?
This investment type pools the money of many people to buy stocks and bonds.
What is a money market mutual fund?
This is an agreement under which a buyer receives goods and services at the present time in exchange for a promise to pay for them at a future time
What is credit?
Part of the economy that is run by the government
What is the Public Sector?
as variable resources are added to fixed resources, the additional output produced from each additional worker will eventually fall
What is the Law of Diminishing Marginal Returns?
this is earned on the principal AND any previously earned interest.
What is compound interest?
In general, the greater the expected return, the greater the
What is risk?
This is the amount that you pay monthly or annually for your insurance:
What is a premium?
when the government redistributes income (ex: welfare, social security).
What are transfer payments?
Skills needed in ALL jobs, regardless of field or specialty
What are soft skills?
When money you are saving is put into an account or asset that earns interest, it is called
What is investing?
type of loan that relies on an asset as collateral & have lower interest rates, such as home loans (mortgages) and auto loans.
What is a secured loan?
The amount you pay your insurance company before any benefits are paid to/for you is called the
What is a deductible?
the different quantities of workers that businesses are willing and able to hire at different wages
What is demand for labor?
This is the argument that education actually makes you more productive by giving you the skills to succeed in the workforce.
What is the Human Capital Argument?
This type of tax takes a larger percent of income from lower income individuals
What is a regressive tax?
an investment option which represents direct ownership in a company and may pay dividends to investors
What is stock?
These are the 3 “C’s” of creditworthiness are
What are Character, Capacity, and Collateral?
Education and Training
Availability of alternative options
Immigration and mobility of workers
Cultural Expectations
Working Conditions
Preferences for Leisure
This is the change in Total Cost/Change in Inputs
What is Marginal Resource Cost?
These are paid out to shareholders based on the profits of a corporation
What are dividends
This type of account allows you to make a contribution without paying taxes. When you withdraw from the account, you will pay taxes.
What is a traditional IRA?
These are one time loans whose balances decrease as payments are made and can’t be borrowed against again.
What are closed-ended loans?