Economics
What is the difference between law of supply and law of demand?
Law of Supply:
Price goes up supply goes up
Price goes down supply goes down
Law of Demand:
Price goes up demand goes down
Price goes down demand goes up
Identify ways to help pay for post secondary education
Student loans, Scholarships, Pell grants, work study, 529 plan, GI Bill, FAFSA, Financial Aid
Identify cost of living factors
Rent, Transportation, Food, Entertainment, Savings
What is the difference between simple interest vs compound interest
Simple interest: the extra money you pay on the principal loan.
Compound interest: paying interest on the interest of the original principal loan.
Identify different types of frauds to look out for
Identity theft
Phishing
Fake charities
Ponzi scheme
Pyramid scheme/multi-level marketing
Skimming
Predatory lending
What is the difference between a command and mixed economy
Command economy: Gov. determines distribution of all resources.
Mixed economy: Supply and demand with gov regulation determine the distribution of all resources.
What's the difference between earned & passive income. provide an example.
Earned income: money you work for by trading your time. such as a teacher
Passive income: money your investments makes such as dividends from stock portfolio
Gross pay: money you earn BEFORE taxes
Net Pay: money you earn AFTER taxes
What's the difference between fixed interest rate vs variable interest rate
Fixed interest rate: interest amount stays the same the entire duration of the loan.
Variable interest rate: interest rates fluctuates in the duration of the loan.
What role does Government have in relation to consumers?
Government creates agencies such as the FDA: Food & Drug Administration BBB: Better Business bureau
and pass laws such as Truth and lending act to protect consumers from unethical business practices.
What is the difference between a monopoly and perfect competition?
Monopoly: There is only one supplier and because of that they control price.
Perfect competition: anyone can become a supplier so price is determined by supply and demand.
Identify costs of attending a university
tuition, room and board, books, meal plans
Identify the different Withholdings & payroll deductions
Withholdings: Social Security, Medicare, Federal Income taxes, State Income taxes.
Deductions: 401k, pensions, health insurance.
How can your credit score effect your standard of living? Provide an example.
it determines how much money you can borrow and the interest rate which determines what house and car you own.
Such as a good credit score of 780 could get you a 4% mortgage whereas a poor credit score of 580 could get you a 8% mortgage or may not even get approved of the loan in the first place.
Identify different types of insurance
auto, life, homeowner, health
Identify & describe the four stages of the business cycle
Peak: highest point of the economy
Expansion: economy is growing
Contraction/Recession: economy is going down
Trough: lowest point of the economy
What is the difference between Merit Scholarships, Pell Grants, & Student Loans
Merit Scholarships: Free money you must apply for
Pell Grants: Free money provided by the gov.
Student loans: money you borrow for college and must pay back with interest
What's the difference between Gov. Bonds, CD's, Individual Stocks, and Index funds
Gov Bond: money you borrow to the gov in which they will pay you back plus interest.
CD's Certificate of Deposits: Money you lock up in the bank for a certain amount of time to earn interest.
Individual Stocks: money you invest to own a portion of an individual company
Index / mutual funds: a basket of stocks rather than one individual company
Pro's and cons of owning vs renting a home
What is the difference between a premium and deductible?
Premium: The amount you pay to your insurance company each month, semi-annually, or annually to keep your insurance policy active.
Deductible: The amount you pay for covered health care services or prescription drugs before your insurance plan starts to pay. For example, if you have a $2,000 deductible, you pay the first $2,000 of covered services yourself
What does the Federal reserve do?
Control money supply and interest rates which effect inflation
Explain APR
Annual Percentage Rate: the interest you will pay on the money you borrow.
What's the difference between Traditional IRA and Roth IRA's?
Traditional IRA: Individual retirement account in which money invested is tax deferred meaning you postpone paying taxes today until you begin making withdrawals.
Roth IRA: Individual retirement account in which money invested is after tax. Meaning the money invested has already been taxed so you won't pay taxes when withdrawing.
Factors that determine your credit score
35%: Payment History
30%: Amount owed
15%: Length of credit history
10%: Types of credit used
10%: New credit
What do Federal and Local taxes fund?
Federal taxes: the military & Medicare
Local taxes: paying teachers police, and parks