Unit 1: Think Like an Economist
Unit 2: Understanding Markets
Unit 3: Business and Economic Performance
Unit 4: The Federal Reserve and Banking System
Unit 5: Personal Finance
100
What is the fundamental problem of economics?
Scarcity
100
What is the definition of an economic system?
organized way of providing for the wants & needs of a group of people
100
Which market structure is defined by a single producer (there is ONE business in control)?
Monopoly
100
What is a budget deficit?
When the government spends more than revenue brought in
100
What is a budget?
A plan for how to spend my money each month
200
What is the definition of demand?
Desire, ability, and willingness to buy a product
200
Markets in the free enterprise system have a small degree of ______________ interference
government
200
What is the definition of an export?
a good produced in one country, then sent to another country for purchase
200
What are Federal Expenditures?
Expenses of the Federal Government
200
Define deposits and withdrawals
Define withdrawal. Money you take out of your account
Define deposit. Money you put into your account
300
What is the definition of supply?
the amount of a product that would be offered for sale at different prices
300
What is the equilibrium point?
Where the quantity supplied and demanded are the same
300
What is the definition of a sole proprietorship?
Unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm
300
What historic event made the U.S. government put more regulations on banks?
The Great Depression
300
Define interest.
A fee paid over a period of time for borrowing money
400
What are the 3 basic questions of economics?
WHAT to produce
HOW to produce
FOR WHOM to produce
400
What are all of the terms used to describe the U.S. economy?
free market, market, free enterprise, capitalism
400
What is the definition of GDP?
dollar amount of all final goods and services produced within a country’s borders in one year
400
How do you build your credit score?
Paying bills on time, ALL of the time; having bank accounts to build credit
400
List 3 advantages of having a checking or savings account.
Money is safe in a bank
Money deposited may earn interest depending on the type of account
There are low or no fees for cashing checks
Banks provide a record of transactions
You likely have 24-hour access to your money through ATMs
500
On the production possibilities curve, how can you tell if all productive resources have been fully employed?
Looking at the red curve, the red curve is the maximum production for a country's economy is when all productive resources have been fully employed
500
Why does a business want to know the 'break-even point'?
to know when the business will become profitable
500
Why do the different levels of government in the United States create a yearly budget?
To provide citizens with various services and products
500
How does the FDIC help ensure your money in a bank?
Protects bank accounts up to $250,000 per person per bank
500
What is the definition of the labor force?
AND
What groups of people are NOT included in the labor force?
Everyone of age (16 and up) who has a job or is looking for a job
Inmates in prison, members of the military, and those in a mental hospital