Basics & Intro
Give an example of a want that is also a service.
Haircut, manicure, ect.
Market
What is supply?
How much of the good there is available
Who is the father of Communism?
Karl Marx
What does the beta of a stock tell you?
The volatility compared to the rest of the market
1 = same as the rest of the market
0-1 = less volatile
1< = more volatile
What is the basic economic problem?
Scarcity
What is an example of a business in the Financial Sector of the economy?
Banks, Credit companies
Where supply and demand meet is the equilibrium, this is the ______ of the good/service.
Price
Which type of economy has no government intervention?
Free market / enterprise economy
Looking at the stock in front of you, what was the highest the company traded for over the past year?
288.62
A ________ , makes and sells goods/services to consumers.
Producer
In exchange for taxes, what does the Government Sector provide to Households and Businesses?
Welfare / Financial Safety Nets
The demand curve is from the ________ 's perspective.
Consumers
Who believed that an invisible hand allowed for consumers to control the price of goods (supply/demand principals)?
Adam Smith
Looking at the stock in front of you, what industry and sector is it in?
Consumer Electronics / Technology
What are the 4 limited resources in the world?
Land, labor, capital, and entrepreneurship
Who/what is the labor market made up of?
Anybody who is currently looking for a job + employers looking to hire somebody
How would a tariff impact a supply/demand chart?
Decrease supply, causing an increase in price
Tariff = an additional tax paid on imported goods
According to John Keynes, how can an economic depression be stopped?
The government spends money to create new jobs for people, adding money into the economy
What can you do to lower your risk of investment?
Diversification of stocks or of investment types
At a cafe, I choose to buy an Americano over a latte. The latte becomes my ________ , the thing I lose out on when I make a choice.
Opportunity Cost
In the shares market, what does a bull or bear market mean?
Bull = most stocks are going up
Bear = downward trending market
How would a government subsidy impact supply/demand?
Increase supply, decrease price
Subsidy = the government pays a company to produce a good, lowering the cost of production.
Which type of economy is fully controlled by the government?
Command economy
What are the 4 types of bonds?
Corporate = Any company
Agency = Company that is backed by the government
Municipal = Local city, town, or state government
Treasury = National government