The US Economy
The study of how people make choices with limited resources
What is Economics?
This type of account held at a bank is used for everyday transactions like paying bills or buying groceries.
What is a checking account?
This international organization promotes free trade by reducing barriers and settling disputes between member countries.
What is the World Trade Organization (WTO)?
In The Office, Michael Scott declares bankruptcy by shouting it out loud. Unfortunately, that’s not how this financial process actually works.
What is bankruptcy?
This term refers to the total amount of money a government owes to creditors.
What is the national debt?
In supply and demand, if price goes up, demand usually goes…
What is down?
This popular budgeting rule suggests you spend 50% on needs, 30% on wants, and 20% on savings or debt repayment.
What is the 50/30/20 rule?
When a company moves part of its operations to another country to lower costs, it is engaging in this practice.
What is outsourcing?
This 2015 film, starring Christian Bale and Steve Carell, explains the 2008 financial crisis through Jenga blocks and celebrity cameos.
What is The Big Short?
When government spending exceeds its revenue in a given year, it's running this.
What is a budget deficit?
What’s it called when you give up one thing to get another?
What is opportunity cost?
Payment history, amounts owed, and length of credit history are all factors that impact this three-digit number.
What is a credit score?
This term describes a strategy where a business adapts its products or services to fit local cultures and preferences in international markets.
What is localization?
In Shark Tank, entrepreneurs offer this in exchange for funding — a percentage of ownership in their company.
What is equity?
This branch of government is primarily responsible for creating and passing the federal budget in the U.S.
What is Congress?
This measure represents the total market value of all goods and services produced in a country in a year.
What is GDP? (Gross Domestic Product)
This type of retirement account, often offered by employers, lets you invest pre-tax income and sometimes includes a company match.
What is a 401(k)?
This company is known as the largest online retailer in the world.
What is Amazon?
In Parks and Recreation, Ron Swanson says, “Give a man a fish and you feed him for a day. Don’t teach a man to fish... and feed yourself.” This line satirizes this type of economic policy that emphasizes self-reliance over government aid.
What is laissez-faire capitalism?
This is the deliberate use of government spending and tax policies to influence the economy.
What is fiscal policy?
This term describes a period of two consecutive quarters of negative GDP growth, and it signals a significant economic decline.
What is a recession?
Spreading your investments across different asset types to reduce risk is known by this term.
What is diversification?
This economic theory suggests that countries should specialize in producing goods they can create more efficiently, and trade for those they can't.
What is comparative advantage?
In Succession, the Roy family controls a media empire, a nod to this type of market structure where a few large firms dominate an industry.
What is an oligopoly?
This Keynesian concept suggests that during a recession, governments should increase spending to stimulate demand, even if it leads to a deficit.
What is deficit spending?