Market Structures
A monopoly is-
one business that owns an entire industry
What is immigration?
The process by which a foreign-born person becomes a citizen of a new country, usually through legal means
What are the two main ways the government makes money?
Taxes and bonds
What are the three different types of government spending?
The three types of government spending are Mandatory, Discretionary, and Interest
What are bonds?
Bonds are borrowed money the government uses from the people that gains interest and is eventually returned to the bond giver.
What market structure created competition between businesses?
Free Market
What kind of tax is placed on cigarettes?
Government spending includes: Goods, services, public infrastructure, roads, schools, military and more.
What are mutual funds?
Mutual funds is pooled money of multiple investors most commonly found in stock, bonds, or other assets.
Name one country with a dysfunctional economic system.
Venezuela, Cuba, North Korea
Why does the government prefer taxes over bonds?
They have to pay back bonds with interest, but not taxes
What is medicare?
Medicare is a very large U.S program that includes a significant amount of the U.S budget. It provides healthcare to individuals over 65 and certain people with disabilities.
What are stocks?
Stocks provide shares which is partial ownership of a company. Share holders can use these stocks strategically to grow their money.
What are some industry examples of an oligopoly?
Phones, gas/oil, and lithium batteries
What is the only item that isn't taxed?
unprepared food
What is the national debt?
The total amount of money the U.S owes.
What is stock diversification?
Stock diversification is when one purchases shares of multiple stocks across a wide range of companies to ensure the least loss of money.
Why does the US favor a capitalist economy?
because of the freedom to spend money where you choose
Where does the majority of federal tax money go?
Social Security
What is social security.
A government program that provides financial assistance to retirees, disabled, and workers with not enough income.
What is Consumer Price Index (CPI) in stocks?
CPI shows the changes in stocks overtime paid by consumers.