Basic vocabulary
A spending or savings plan for an individual or company
What is a budget?
Lisa borrowed money from the bank to pay for her brand new BMW.
What is a loan?
What must one do in order to figure out the amount that is left over after each month?
One must subtract the expenses from the income.
What should an entrepreneur do if the demand for the new product began to rise quickly?
The entrepreneur should raise his/her prices in order to get the most profit.
_______________ was one of the earliest transactions on earth. This is when a person trades an item or service for another item or service.
What is barter?
The ability to borrow money
What is credit?
Sarah wants to buy a new pair of shoes, so every week she sets aside a third of her income.
What is saving?
Andrew works at a comic book store making $7.25 an hour. He works 8 hours a day and 5 days a week. What is Andrew’s monthly income if there are 4 weeks in a month?
Andrew’s monthly income is $1,160
Martha spent $14.42 to make tie-dye bracelets. Martha was able to make 23 bracelets. What is Martha’s unit cost?
Martha’s unit cost is about 63 cents
________________ is the amount of good or service there is and _______________ is determined by how many people want the good or service.
What is supply; What is demand?
______________ are storage houses for people’s money.
What is a bank?
Matt borrowed $400 from the bank to buy a new television. When the bill came, Matt did not have $400 in his bank account, so Matt only paid the minimum payment. When the second bill came Matt had his remaining balance plus a 7% fee. What is the 7% that Matt had to pay?
What is interest?
______________ are items that are paid every month and are consistent.
What is fixed-regular expenses?
Holly started selling dog paintings. On her first day of selling, Holly brought in $17 in change. At the end of the day, she had $65 total in her cash register. What was Holly’s profit for her first day of selling?
Holly made a $48 profit
What causes inflation?
Too much money in circulation
Simon’s bank pays him 0.2% each month on all of the money that he deposits. What type of interest is Simon earning?
What is simple interest?
Mary places $300 a month into her certificate of deposit. What type of investment is Mary participating in?
Financial Investment
Stacy spends $50 a week on food, entertainment, and personal items. She spends $800 a month on rent and $20 a week on gas to get too and from work. How much are Staci’s monthly expenses if there are 4 weeks in a month?
Food, Entertainment, and Personal Items - $50 x 4 = $200 each ($600); Rent $800 a month; Transportation is $20 x 4 = $80.
$600 + $800 + $80 = $1,480
Sarah started selling beaded necklaces. Sarah spent $23.45 to make 45 necklaces. On her first day of selling Sarah made a $56 profit. What was Sarah’s net profit after her first day of selling?
Sarah’s net profit was $32.55.
When supply is high and demand is low, what would this mean for the price of the product?
The price would most likely go down.
The cost of producing one single item.
What is unit cost?
Keaton’s bank pays him 5% monthly interest on all deposits plus interest that is already earned. If Keaton deposits $200 one month, what will he have after two months?
$200 x 0.05% = $10 $200 + $10 = $210
$210 x 0.05% = $10.50 $210 + $10.50 = $220.50
Kyle works as a police officer. He makes $17.50 an hour. Kyle works 8 hours a day, 5 days a week (there are 4 weeks in a month). Kyle’s rent is $1,250 a month and it costs him $8 a day to ride the train to and from work. Kyle spends $90 a week on food. He likes to rock climb so Kyle spends $75 a week on entertainment. Calculate Kyle’s monthly budget.
•Income - $17.50 x 8 hours x 5 days a week x 4 weeks = $2,800
•Rent – $1,250
•Transportation - $8 x 5 days a week x 4 weeks = $160
•Food - $90 x 4 weeks = $360
•Entertainment - $75 x 4 weeks = $300
•1,250 + $160 + $360 + 300 = $2,070
•$2,800 - $2,070 = $730
nAmy started a business selling coasters. It costs her $0.86 to buy all the supplies to make one coaster. Amy decides to sell each coaster for $1.25 each. At the end of her first day of working, Emily has a $23.75 profit. What is Amy’s net profit after her first day of selling?
Amy made $7.41 selling coasters.
What does this mean for the price when demand is high and the supply is also high?
The price will be at its highest.