Econ Basics
The science of decision making is known as...
Economics!
Name the system: Individuals and businesses own the resources for production and earn income and profit from working and conducting business.
Free market economy
The United States is divided into two economic sectors - what are they and who controls each?
Private - controlled for individuals and businesses
Public - controlled by government
What is the central bank of the United States, whose job it is to manage the money supply and set interest rates?
The Federal Reserve
The first step in smart career planning is to take a ______ _______________.
The point where supply and demand meet is known as the _______ point.
equilibrium
Name the system: Government owns the resources for production and controls buying and selling with the goal of providing for people's needs.
Command Economy
The power for Congress within the NATIONAL government to collect taxes based on your income is written in the ____ Amendment of the Constitution.
16th
Explain the difference between inflation and recession.
Inflation - Too much money in the economy; results in higher prices.
Recession - Not enough money in the economy; results in less spending and unemployment
Health/Medical, Life, Home, Vehicle, etc.
A reward offered to persuade people to change economic behavior (ex: a sale, bonus offer, and new feature).
Incentive
Name the system: Economic decisions are based on customs and historical precedent.
Traditional Economy
The _______ is the executive agency that enforces ________ legislation that prevents monopolies by having to the approve the sale or merger of corporations in the US.
Federal Trade Commission; anti-trust
What are the three types of business ownerships?
Proprietorships
Partnerships
Corporations
A legal agreement for a business to fix a product if it breaks is called a ________________.
warranty
What is the fundamental problem of economics - meaning that there is an inability to satisfy all wants and needs?
scarcity
____ _____ is when a buyer's purchases determine what goods and services are produced - "The consumer is king."
consumer sovereignty
Name an executive agency that protects public safety and explain an example.
OSHA; FDA; CPSC; EPA
During a time of economic recession, what should the government try to do with TAXES to fight the recession?
Lower taxes to give the private sector more spendable income.
When you are trying to get a loan (financial capital) to purchase a home, you should seek a loan with the _____ interest rate.
lowest
What are the four types of resources that make up the the factors of production?
natural, capital, human, entrepreneurial
In a free market economy, prices are set by ____.
Supply and Demand (consumers)
National - Income Taxes
State - Sales and Income Taxes
Local - Property and Sales Taxes
(Provide an example service for each)
Coins and paper money are easier to exchange and carry around. This is an example of money acting as a ______ of ______.
Medium of exchange
Explain why someone might prefer to be a member of a credit union rather than doing business with a bank.
Banks are open to all people and generally have higher rates of interest on loans and lower rates of interest on savings.