Vocabulary
the quantity of goods and services that producers are willing and able to provide
Supply
What is the economy? Why is it important for you to understand it?
The economy is how goods and services are made, sold, and bought. It’s important because it affects jobs, prices, and money in your life.
Explain how the economy affects the amount of income you will make.
If the economy and your career field are growing, you likely will be able to earn a good income and are more likely to receive pay raises and bonuses.
an economy based on the laws of supply and demand
market economy
all of the activities related to making and distributing goods and services in a geographic area or country
Economy
Explain the concepts of supply and demand within a market economy.
Supply is how much businesses sell, and demand is how much people want. High demand + low supply = higher prices; low demand + high supply = lower prices.
What are the ACT and SAT, and why are they important?
The ACT and SAT are standardized tests used to screen applicants for colleges and universities. Students generally need to achieve an acceptable minimum score to be accepted.
the alternating periods of growth and decline in the economy
Business cycle
a set of moral values that people consider acceptable; the study of what is right versus
Ethics
What is retraining?
Retraining is learning new skills so you can do a different job, often when your old job is no longer in demand.
How is a loan different from a grant?
Loans must be repaid, whereas grants do not need to be repaid.
A loan that starts charging interest from the time the loan is made
Unsubsidized student loan
money given to pay for educational expenses that does not have to be repaid
Grant
Explain why it is important to have cash (spending power) in a recession.
In a recession, jobs and income may decrease. Having cash saved means you can still pay for essentials like food, rent, or bills without borrowing.
How are prices set and how can you prepare for these costs, including the costs of education?
Prices are set by both buyers and sellers based on the law of supply and demand. The costs of education depend on various factors such as whether the school is public or private. Financial aid in the form of grants, scholarships, and student loans can help you pay for education. Working and saving money is another way to cover costs.
A cash allowance awarded to a student to help pay for education
Scholarship
a loan on which the student pays no interest until he or she has graduated or is no longer in school
subsidized student loan
Why is it important to attend an accredited college?
Accreditation means the college meets quality standards. Employers and other schools will recognize your degree, and you can qualify for financial aid.
How do subsidized and unsubsidized student loans differ?
Subsidized loans: The government pays the interest while you’re in school.
Unsubsidized loans: Interest builds up while you’re in school, and you’re responsible for it.
money received from an outside source to help pay for education
financial aid