Business
What type of business ownership involves two or more people taking all the risk?
Partnership
Which type of economy involves doing the same type of work as your parents?
Traditional
Explain opportunity cost using an example.
When you stay up late playing video games, you are giving up the benefit of sleeping. That benefit is the opportunity cost.
What is an incentive?
Something that motivates or influences behavior.
Describe a debit card.
Electronic cash -- connected directly to your bank account
Which type of business ownership allows the company acts as a legal entity?
Corporation
What is more prevalent in Command Economies?
The government
The amount of a good that is created and the desire for that good. Heavily impacts the prices.
Supply and Demand
Provide one example of the three following resources:
Natural, Human, and Capital.
Natural --> Something not man-made (ores, wood, etc.)
Human --> Any type of worker
Capital --> Something man-made (hammer, factories, etc.)
Describe credit cards.
Gives you access to small loans from a bank which you have to pay back at the end of the month (or else you'll have to pay additional interest).
What is meant by "corporations have legal liability"?
The corporation is responsible for damages or legal conflict rather than individual owners/employees.
E.g., Someone would sue McDonalds, not an employee of McDonalds.
What type of economy is America?
Mixed
Explain why price and supply have a positive relationship using a push factor (why you would NOT produce another good) and a pull factor (why you would produce a good).
Push: The opportunity cost of producing a lower priced good is high (or, there is less profit that can be made)
Pull: There is a higher incentive to produce a higher priced good (because there is a high amount of profit that can be made)
List two of the three reasons we discussed for why money is helpful.
Makes trade simpler (medium of exchange)
Makes it easier to save+invest (store of value)
Makes comparing value easier (unit of account)
Explain why using a credit card could be either a good or bad thing
Gives you an easy way to increase your credit score early on.
Can create lots of debt if you are irresponsible with their use.
(other answers can work)