Government and Economy
What type of market structure does the US fall under?
a Mixed Market
What type of Liability is held within a partnership?
Limited Liability
In 18th-century France, what term that was created meant, "Leave it alone" by Adam Smith?
Laissez-faire
What form of income doesn't come from working and is earned another way? EX: Birthday Card money
Unearned income
We only consider dollar bills or change something of worth because they are what type of currency?
Fiat (it's used because the government says to)
Besides the difference in the names Socialism and Communism, what are both economies considered?
Command Economies
In Market and Mixed Market economies, both are driven by the desire to do what?
Make a profit (Profit motive)
What is used to measure our economy's inflation and is a main economic indicator?
CPI or Consumer Price Index
When creating a budget, should you use your Net pay or Gross pay?
Net pay (this is the total after factoring in taxes and withholdings)
What form needs to be filled out in order to be considered for financial aid?
FAFSA or Free Application for Federal Student Aid
Mandetory spending
When workers do this (________) they don't work until the management of a business listens to their demands
Strike
What factors lead to a change in demand?
Price (Elasticity of product or service changes consumersneed for it) and Quantity
What allows people to ALWAYS be able to receive their money back from a bank?
FDIC or Federal Deposit Insurance Commission
When applying for a secured loan, what should a person remember when paying off their debt? EX: Mortgage
Collateral can be taken if debt is unpaid (Like a house can be repossessed)
Protectionism *Protects* our country's home businesses and jobs through what means?
Tariffs, Quotas, Embargoes
What are the 4 factors of Production?
Land, Labor, Capital, Entrepreneurship
When the price of a product or service increases
Demand decreases
The IRS requires an official document that U.S. taxpayers used to file their annual income tax return, what is this form called?
The 1040 form
What rule recommends putting some of your money toward needs, some towards wants, and some towards savings.
The 50-30-20 Rule
Taxes are the main form of revenue for our government, but what type of tax is used for our Medicare and Social Security?
Payroll Tax
When a person leaves their job on their own terms, their unemployment would be considered?
Frictional
As prices increase, demand will always decrease. This leads to an inverse relationship, which falls under what law?
The Law of Demand
When Jalyn's car did gymnastics off the road because of a deer running in front of her car, what type of insurance should cover the damage done if she had actually hit the deer?
Auto insurance
What allows economists to assess the growth of an economy without the distortion of Inflation?
Real GDP