SMART Goals
What is a fixed cost?
Costs that are expected (ex. monthly bills)
What is interest?
The price/cost of borrowing
Is happiness "fixed" at a single point?
No, it can change
What is the basic question of economics?
How we meet our unlimited wants with our limited resources.
In what year was the Declaration of Independence written?
1776
What are the parts of a SMART goal?
Specific, Measurable, Attainable, Relevant, Timely
What is simple interest?
Interest that only counts the original investment
What happens to the amount of happiness you get from each additional dollar after a certain amount of income?
Diminishing Returns
What is the law of demand?
As price increases, demand decreases
In what year did William the Conqueror invade England?
1066
Why does a goal need to be Timely?
If a goal doesn't have a time based component, it can be easy to procrastinate or put it off.
What is compound interest?
Interest that includes previous interest earned
What is the Easterlin Paradox?
As the income level in a country rises, the average level of happiness doesn't always follow
What does it mean for a good to be elastic?
It will experience a large change in quantity due to a change in price
In what year did Kansas become the 34th state?
1861
What is the time frame for a mid term goal?
1 - 2 years
What is the historic rate of return for the S&P 500?
7%
What is the reference-income hypothesis?
People judge their happiness based on their income relative to others
What is the most efficient price for a good?
In what year was the lightbulb invented by Thomas Eddison?
1879
Give me an example of a SMART goal
(Should be Specific, Measurable, Attainable, Relevant, and Timely)
What does compound interest need in order to be powerful?
Time
Which is harder to budget for, money or time? Which resource is more scarce for you at this point in your life?
(Mr. Hoyt will judge your answer)
What would an increase in consumer income create on the demand curve?
A right shift
In what year did Robert the Bruce defeat the English army at Bannockburn, securing the independence of the kingdom of Scotland?
1314