Economic Systems
This is a production choice influenced by consumer demand
What to produce
This economic model that shows various output combinations of two goods and demonstrates the concept of opportunity cost.
What is a Production possibility curve?
What type of business structure enjoys the rights to all profits and bears the responsibility for all debts and liability
What is a Sole proprietorship?
What are some of the cons to renting instead of buying?
· Abiding by requirements of the lease
· Opportunity cost of not building equity from property ownership
· Subject to possible rent increases
Government uses _______ to fund its operations and programs.
What are taxes?
This refers to the value of goods and services that are given up to obtain an alternative good or service
What are opportunity costs?
A point inside the PPcurve means what
What is an inefficient use of society’s resources, a recession for instance or a supply shortage?
This type of business structure legally ceases to exist if one of the owners leaves the firm.
What is a Partnership?
Name 2 costs you will have to pay as a homeowner
· Obligations to pay property taxes and insurance
· Long term economic commitment to repay a mortgage
· Costs of repairs and maintenance
· Potential homeowner association fees
The _____ is a plan for how the federal government will spend money over the coming fiscal year.
What is The federal budget
These are benefits of the free trade system
· Allows for access to more markets.
· Increased competition and elimination of businesses that are not competitive.
· Lowers prices for consumers, because the cost of tariffs is not passed on to consumers.
What is the point where the supply curve and demand curve intersect?
What is price equilibrium point
Name 2 disadvantages to having a corporation
• expensive to obtain the charter necessary to incorporate
• owners and stockholders have little
• control over the operations of the business
• double taxation of corporate profits
• subject to government regulation
If you don't pay off credit card balances in full each month, you will have to pay these fees
What are interest charges
These are the types of taxes the government uses to get revenue
· individual income taxes
· Social Security/Social Insurance
· corporate income taxes
· excise taxes
Two challenges of the free enterprise system are?
What are Uneven Economic Growth, Income Inequality
A visual representation showing the relationship between the factor market (where income is obtained) and the product market (where income is used to make purchases)
What is Circular Flow model?
If you share a percentage of profits with another person, this type of business is a-
What is a Partnership?
Having excess credit inquiries is not advisable because-
It will lower your credit score
· General government
· Defense and international
· Net interest
· Federal payments for individuals (Social Security, Medicare, other)
Ways the US government can promote and encourage efficient competition
· Preventing monopolies and stopping anti-competitive practices
· Ensuring that market participants have access to truthful information
· Resolving the effects of externalities, such as environmental conditions
· Fulfilling the need for public goods, such as highways, military
An decrease in a countries high school dropout rate will affect the PPC by:
What is greater production of products on the curve. Curve will shift to the right?
Despite offering easier access to finical capital and unlimited life span, this business structure is criticized for double taxation, costly incorporation, and limited control for its owner
What is a corporation?
What products do financial institutions offer consumers?
They offer a convenient and safe way for people to store money, and with depositors’ funds, they provide commercial loans, personal loans, mortgages, and issue credit cards.
_____ is the difference between the amount of government payments and the amount of government revenues in a particular year.
What is a budget deficit or budget surplus?