Principles of Money Management
The job or profession that a person does for a long period of their life.
What is a career?
Different jobs require different levels of what three things?
What are education, experience, and talents?
The way goods and services are produced and consumed
What is an economy?
_______ is the motivation to do something.
What is incentive?
In this type of economy, producers are free to decide what to produce and consumers are free to buy whatever they need and want.
What is a market economy?
______ is money earned from work or investments.
What is income?
How much of a good or service consumers want and are able to buy at a certain price.
What is demand?
Something that can be used or consumed.
What is a good?
The benefit you give up by choosing to do one thing instead of another.
EX: choosing candy over glow sticks
What is opportunity cost?
In this type of economy, the government decides what will be produced, how much will be produced, and how much goods and services will cost. The opposite of market economy.
What is a command economy?
These types of choices people make can shape their lives.
What are personal financial management choices?
How much of a good or service is produced or is available at a certain price.
What is supply?
Intangible products or actions that are produced and consumed at the same time.
What is a service?
The limited amount of resources available.
EX: toilet paper during the pandemic
What is scarcity?
This type of economy is focused on providing food; people follow methods and traditions their ancestors have always used; they use the bartering system. Found in primitive cultures
What is a traditional economy?
This is a loan used to buy a home or other real estate.
What is a mortgage?
This describes how much income someone is likely to earn based on his or her education, skills, and experience.
What is earning potential?
_________ are people who make goods or offer services to others.
What are producers?
An individual who undertakes the risk associated with creating, organizing, and owning a business.
Who is an entrepreneur?
Most democratic countries have some characteristics of both market and command economic systems, which are called __________.
What are mixed economies?
The money earned at a job is often called a ______ or _________.
What is a salary or wages?
To choose a career path, people need to consider these three things.
What are: 1.What kind of jobs are available?
2. What kinds of jobs interest them.
3. What kinds of jobs they are qualified to do.
A ______ is the money you gain after selling something for more money than it cost to make it.
What is a profit?
4 characteristics of entrepreneurs.
What are persistent, responsible, independent, self-confident, creative, goal-oriented, risk taker, organized, flexible, passionate?
The four basic types of economic systems all have to
answer three basic questions.
1. What to produce?
2. How to produce?
3. For whom to produce?