Personal Finance
What is a budget, and why is it important for personal finance?
A budget is a plan that outlines expected income and expenses; it helps individuals manage their finances and save for goals
What is the purpose of tariffs in international trade?
Tariffs are taxes imposed on imported goods to protect domestic industries and generate revenue for the government
What is globalization?
Globalization is the process by which businesses and other organizations develop international influence or operate on an international scale
What is an NGO?
A non-governmental organization (NGO) is a non-profit group that operates independently of any government, often to address social or political issues.
What is the law of demand?
The law of demand states that, all else being equal, as the price of a good decreases, the quantity demanded increases, and vice versa
What are the key components of a credit score?
The key components include payment history, credit utilization, length of credit history, types of credit used, and new credit inquiries
Define trade deficit
A trade deficit occurs when a country's imports exceed its exports, leading to a negative balance of trade.
Name one positive effect of globalization on economies.
A positive effect is increased access to markets, allowing businesses to expand and consumers to access a wider variety of goods
Give an example of a well-known NGO and its mission
The Red Cross is a well-known NGO that provides emergency assistance, disaster relief, and education in communities affected by crises.
Define supply
Supply is the total amount of a specific good or service that producers are willing to sell at a given price.
How does compound interest work, and why is it beneficial for saving?
Compound interest is interest calculated on the initial principal and also on the accumulated interest. It is beneficial because it allows savings to grow at a faster rate over time.
What are trade blocs, and can you name one?
Trade blocs are groups of countries that promote trade with each other by reducing tariffs; an example is the European Union (EU)
What is cultural homogenization in the context of globalization?
Cultural homogenization is the process by which local cultures are transformed or absorbed by a dominant culture, often due to global media and trade
What role do GO's (government organizations) play in economic development?
GO's implement policies, provide services, and regulate industries to promote economic growth and stability within a country
What factors can cause a shift in the supply curve?
Factors include changes in production costs, technology, number of sellers, and government policies or regulations
What is the difference between a fixed-rate mortgage and an adjustable-rate mortgage?
A fixed-rate mortgage has a constant interest rate throughout the term, while an adjustable-rate mortgage has an interest rate that may change periodically based on market conditions.
How does currency exchange impact international trade?
Currency exchange rates affect the cost of imports and exports; a stronger currency makes imports cheaper and exports more expensive
How does globalization affect labor markets?
Globalization can lead to job creation in developing countries, but it may also result in job losses in higher-cost economies due to outsourcing
How do NGOs contribute to international development?
NGOs often provide humanitarian aid, promote education, and advocate for policy changes to improve the living conditions of underserved populations
Explain market equilibrium
Market equilibrium is the point where the quantity demanded equals the quantity supplied, resulting in a stable market price
Explain the concept of opportunity cost in personal finance
Opportunity cost is the value of the next best alternative foregone when making a financial decision
Explain the concept of comparative advantage in international trade
Comparative advantage is the ability of a country to produce goods at a lower opportunity cost than another country, leading to specialization and trade
Discuss the environmental implications of globalization
Globalization can lead to environmental degradation due to increased production and consumption, but it can also promote global cooperation on environmental issues.
Discuss the significance of public-private partnerships involving GO's and NGOs.
Public-private partnerships leverage resources and expertise from both sectors to address complex social issues, enhancing the effectiveness of programs and services
How do price ceilings and price floors affect supply and demand?
Price ceilings can lead to shortages by keeping prices below equilibrium, while price floors can lead to surpluses by keeping prices above equilibrium