Vocabulary
What is Economics
Consumers and savers
Government and its Budget
Chapter 13-15
100
What is Demand?
What is the quantities of a particular good or services consumers are willing and able to buy at different prices.
100
What are the four types of productive resources?
What is Natural resources, Human resources, Capital resources, and entrepreneurship.
100
What are the two main sources of income?
Income from work, Income from wealth.
100
How do federal, state, and local government raise their money?
federal: Personal income taxes, taxes on corporations, excise taxes. State & Local: Federal Government, Property taxes, Sales & gross receipts, individual income tax, corporation income tax, insurance trusts.
100
What is money? and what is its characteristics?
Money can be anything that is generally accepted in payment for goods and services. Characteristics: Stability, Portability, Durability, Uniformity, Divisibility, Recognizably.
200
What is Supply?
What is the various amounts of something a producer is willing and able to sell at different prices.
200
What do scarcity and opportunity cast mean?
What is Scarcity is the result of an inability to satisfy all everyone's wants, and Opportunity cost is always the best alternative you give up when making a choice.
200
How does insurance help you budget for emergencies?
Insurances helps pay for part of the emergencies.
200
what are the main federal taxes?
They are the personal income tax,social insurance tax,and corporate income tax.
200
What kind of money are used in the United States?
Currency, Demand deposits, Other checkable deposits, and Travelers' checks.
300
What is Entrepreneurship?
What is imagination, innovative thinking,and management skills needed to start and operate a business.
300
How do markets and the concept of voluntary exchange help organize production and distribute goods and services?
a voluntary exchange takes place in a market.People can make exchanges with one another in places like supermarkets or over telephone.
300
What are advantages and disadvantages of using credit?
Advantages: Immediate, Flexibility, Safety, Emergency funds, Character reference. Disadvantages: Overspending, Higher cost, Impulse buying.
300
What are proportional, progressive, and regressive taxes?
Proportional taxes:One that takes the same percentage of all incomes. Progressive taxes:One that takes a larger percentage of a higher income and a smaller percentage of a lower income. Regressive taxes:One that takes a higher percentage of a lower income and a lower percentage of a high income.
300
What is a Business cycle?
A Business cycle is a very irregular, and it is better to think of ups and downs as economic fluctuation.
400
What is Regressive tax?
What is one that takes a higher percentage of a low income and a lower percentage of a high income.
400
What are the basic economic choices facing all societies?
the basic economic choices are the what?how?and the who? choices.
400
How can you make your wealth grow over time by saving some of your income?
You have to save, by not spending every dollar you earn, you can set aside money and make your wealth grow.
400
What shortcomings does government spend and raise their money?
Incentives:Government decision makers don't own the resources they use.Information: government decision makers may lack information about consumers wants.Special interests: various interest groups have strong incentives to stay well informed on particular issues that affect them.
400
What are exchange rates,and what determines them?
The exchange rate is given either as the price of the dollar in terms of another currency.A currency's price (exchange rate) moves up and down as its world wide demand and supply change.
500
What is Prospectus?
What is a statement containing financial information published when a corporation is about to issue new securities.
500
What is trad-off, marginal cast,and marginal benefits, and how do they affect your daily decisions?
Trade-off is a choice that involves giving up some of one thing to have more of another,marginal cost and marginal benefits are the extra or additional cost of a decision.It affects the daily decisions for example when you have a car your decision is about buying gasoline is between buying a tank or none but instead you decide how much money to spend on gas.
500
What are some alternative places to put your savings?
Saving deposits, Money market deposit accounts, Pension funds, Corporate stocks, U.S savings bonds, Mutual funds, Life insurance reserves, Corporate bonds.
500
How do people decide who ought to pay taxes?
Benefits-received: The government should tax people in proportion to the benefits they received from a government service, The people who use a facility or service should be the ones who pay for it. Ability-to-pay: The government should tax people in proportion to their ability to pay.
500
What are the advantages of fiscal and monetary policies?
fiscal policy: Use of the federal government's power to tax and spend to regulate economic activity.Monetary policy: Use of the federal Reserve's power to control the supply of money and credit to influence economic activity in the nation as a whole, particularly inflation and economic growth.
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