Economic Choices
The three factors of production.
What is land, labor and capital?
When quantity demanded is the same as quantity supplied.
What is equilibrium?
Mr. English said that you have the greatest advantage in investing because of this.
What is time?
The driving force of economics; a limited amount of resources available to meet the needs and wants of a people.
What is scarcity?
Bonds that are bought from the government; guaranteed return from the government.
What are treasury bills and municipal bonds?
All the alternatives we sacrifice when we make a decision.
What are trade-offs?
A list of how much a good all suppliers in a market will offer at different prices.
What is a market supply schedule?
This type of investment is guaranteed to make you a multi-bajillionaire in a short time.
What is there is none?
A graphic representation of a demand schedule.
What is a demand curve?
Very safe investment with a fixed rate of return bought from a bank.
What are CDs?
He wrote 'Wealth of Nations' which described the Invisible Hand.
Who was Adam Smith?
Peanut Butter and Jelly are this type of goods.
What are complements?
A high school senior who makes minimum wage and has just started working for the first time should be investing at this level.
What is put-and-take account?
The doctrine that states that government generally should not intervene in the marketplace.
What is laissez-faire?
Like checking, must maintain a high balance to avoid penalties and can earn compound interest.
What are money-market accounts?
Strict control of the economy, and all other functions, held by the central government, as in the former Soviet Union.
What is authoritarian?
Demand that is not very sensitive to a change in the price.
What is inelastic?
The benefit of this type of investment is you don’t have to pay taxes on it when you take it out at age 59 1/2.
What is a Roth IRA?
Name brand products and generic brand products are examples of these goods.
What are normal and inferior goods?
Professionally managed funds that invest in several types of investments.
What are mutual funds?
This describes the total value of all final goods and services produced in a particular economy.
What is GDP (Gross Domestic Product)?
Total cost is calculated by adding these two costs.
What are fixed and variable costs?
A person who has been working a number of years and has established a secure investing plan can now move on to this stage of investing.
What is strategic investing?
A period of macroeconomic expansion followed by a period of contraction.
What is the business cycle?
Investment trusts in property; allow investors to own portions of business and mortgages.
What are REITS?