EPF Midterm Guide 3

1

100

What are the three basic economic questions?

What to make

How to make it

For whom to make it for

200

What are the five steps in the rational decision making process in order?

1. Define the problem

2. List the alternatives

3. Understand your criteria

4. Evaluate alternatives on basis of your criteria

5. Make a decision

300

Identify the three parts of a financial plan in order.

1. Looks at current financial situation

2. Goals for future

3. Plans to meet their goals

400

What's the two criteria for an economic activity to be considered a public good or service?

1. Citizens cannot be prevented from using them (nonexcludable)

2. They can be used by many and possibly all citizens at the same time (nonrivalrous)

2

100

What are Mandatory Spending Areas?

1. Social Security and Medicare

2. Interest on Federal Debt

3. Entitlement Programs

200

What is a Buyer's Market?

Market with more sellers than buyers

300

What is a Seller's Market?

Market with more buyers than sellers

400

What are the Determinant Of Demand?

1. Income

2. Price

3. Taste and preferences

4. Prices of related goods and services

5. expectations

3

100

Finding disposable and discretionary income?

Will have to calculate

200

Medicare Tax Percentage?

1.45 %

300

Social Security Tax Percentage?

6.2 %

400

State Tax Percentage?

4.99 %