Whole Class
What is the model that shows how businesses, households, and the government exchange goods/services with one another in an economy?
The circular flow model
The legally set lowest wage employers can pay workers
Minimum Wage
What is a dividend?
A portion of a corporation's profits paid to shareholders
A budget
In the circular flow model, who supplies resources to businesses in the resource market?
Individuals
Adding more workers at some point will eventually lead to less output, this concept is known as what?
Law of Diminishing Marginal Returns
Labor Market Imperfection
Interest earned on the principal amount only
Why do doctors typically earn higher wages than fast food workers?
Doctor's have lower supply and higher demand
What is saving defined as?
Holding money without earning compound interest
What is the relationship between risk and return in investing?
Higher the risk, higher the return.
Lower the risk, lower the return.
Spreading investments across different types to reduce your overall portfolio risk is defined as
Diversification
What are loans made to a government or corporation, acts as an I.O.U. that pays fixed interest until it's sold?
Bonds
What are the three C's lenders look at?
Character, Capacity, and Collateral
What percentage of working people (18-65) don't have a budget at all and what percentage of people who do have a budget, don't follow it at all?
A) 25% / 90%
B) 50% / 75%
C) 10% / 80%
D) 33% / 66%
A) 25% / 90%
What type of Federal Income tax system do we have in the U.S.?
Progressive
What is the concept where you earn interest on both the principal and previously earned interest?
Compound
Mutual Funds
REIT's
Index Funds
More than one stock in a portfolio
Why do areas of high tourism like central Florida often have higher sales tax rates?
To raise money for local projects/schools/roads from people who do not live here
Minimum Wage is set where compared to where labor market equilibrium rests on the labor market model?
Above, because it's a wage floor (like a price floor)
What is needed in order to have a loan to be determined as "secured"?
Collateral; backed by something with value
What are the two current stock exchanges that are currently present in the United States? Name both.
NYSE and CME
What did Mr. H say are the 3 possible states that the next stock exchange location could be? Need all 3.
Florida, Texas, and or California
What is the difference between a traditional vs a Roth IRA (Individual Retirement Account)?
Traditional you only pay tax when you pull it out on the principal amount, not taxed when you put it into the account.
Roth you are taxed when you put your money into the account, when you withdraw that money is yours tax free.
This terms defines a town where everyone works for the same company, giving the employer immense power over the labor market, often leading to suppressed wages and poor working conditions
monopsony