Economic Systems
The oldest and simplest of economic systems, it relies on habit, ritual, and custom. Economic activity is centered mostly around hunting and farming
What is a Traditional Economy?
The general increase of prices across the economy. Also the devaluing of money
What is Inflation?
The everyday account that holds money for everyday use and everyday purchases.
What is a Checking Account?
The charge for borrowing money
What is Interest?
The idea that there are unlimited wants and needs, but a limited amount of resources
What is Scarcity?
This economic system is determined by the choices of the individual and privately owned businesses. What is made, how its made, and who gets it is up to individual choice and is free from government intervention. It is argued that the market is regulated by competition and self-interest
What is a Free Market/Capitalist Economy?
When companies decrease the size, weight, or quantity of a product to keep the price the same
What is Shrinkflation?
If you use an ATM not from your bank it may come with this.
What is a fee?
The initial amount of money given in a loan
What is the Principal
The best benefit lost out on by choosing the other option
What is Opportunity Cost?
This kind of economic system is characterized by central planning. The government decides what gets made, how its made, and who gets what. OR ELSE
What is Command Economy?
When prices go up, but the economic growth stays the same or shrinks (jobs, wages)
What is Stagflation?
It's similar to a bank, but it is more community driven being non-profit and member run
What is a Credit Union?
This is the central bank of the United States. They set monetary policy in order to maximize employment and keep prices stable
What is the Federal Reserve (the Fed)?
The three things used to make goods and services. They include land, labor, and capital
What is Factors of Production?
This economic system can describe most modern economies. It is typically a free market with varying degrees of government involvement (or maybe vice versa??).
What is a Mixed Economy?
The idea that when prices to produce something goes up (because of supply shortages or rising material prices) the cost is put on the consumer through raised prices on goods.
What is Cost-Push Theory?
The unique nine digit code used to identify a bank.
What is a Routing Number?
The kind of interest that is fixed. It is calculated off the principal amount and stays the same every time
What is Simple Interest?
The people who take and combine resources, turning them into products.
What are Entrepreneurs?
The idea where a private business is free to organize and operate for profit in a competitive system. Anyone can start a business producing what they want, encouraging risk and innovation
What is Free Enterprise?
The idea that the more money there is the less it is worth, raising prices and causing inflation
What is Quantity Theory?
The act of tracking what you spend and comparing it to what the bank says you've spent.
What is Balancing a Checkbook?
The kind of interest that is calculated off the principal amount AND any interest built up. Different every time
What is Compound Interest?
The number that sums up all activity within a country for a given year. Total value of all goods and services produced within that time
What is Gross Domestic Product (GDP)?