Income & Economics (IE)
What type of income is earned from working a job?
Earned income
What does it mean if an expense is "fixed"?
It stays the same each month (e.g., rent).
What does “pay yourself first” mean?
Save a portion of your income before spending on anything else.
What is one smart strategy when making a big purchase?
Comparison shopping
What is the basic economic problem all societies face?
Scarcity
What government form shows how much you were paid and what was withheld?
W-2 form
What is overdraft protection?
A bank service that covers transactions when you don’t have enough money in your account.
What is a mutual fund?
A pool of money from multiple investors used to buy a mix of stocks/bonds.
What’s one sign that an email may be a phishing scam?
It asks for personal information or has suspicious links.
What do we call the cost of the next best alternative you give up?
Opportunity cost
What’s the difference between disposable and discretionary income?
Disposable income is after-tax income; discretionary income is what's left after paying for needs.
What’s the difference between a credit score and a credit report?
A credit score is a number; a credit report is a detailed history of credit activity.
What’s the benefit of an automatic transfer to savings?
Ensures consistent saving and helps build financial discipline.
Why should you check your bank statements regularly?
To catch fraud or errors early.
How do incentives influence consumer behavior?
They encourage certain choices (e.g., sales or discounts).
Name one way education can reduce unemployment.
It increases skills and qualifications, making people more employable.
What is one disadvantage of using credit irresponsibly?
High interest rates or long-term debt.
What is the relationship between risk and reward in investing?
Higher risk can lead to higher potential reward.
What is one benefit of using consumer reviews before buying a product?
Helps ensure product quality and satisfaction.
What is the role of government in a mixed economy?
To regulate and provide public goods while allowing market activity.
Why might someone receive a scholarship instead of taking out a loan?
Scholarships do not need to be repaid, unlike loans.
What type of insurance protects your belongings in a rented apartment?
Renters insurance
What does it mean to invest in a 401(k)?
You are contributing pre-tax income to a retirement account through your employer.
What does “buyer’s remorse” mean?
Regret or doubt after making a purchase.
How does global trade benefit consumers?
Access to a wider variety of goods at lower prices.