Stocks and Loans
What is a stock symbol?
Abbreviations for the companies
What causes a shortage?
When there is more demand than supply
How is sales tax applied
You pay a percentage of the total cost of what you bought
Fiscal Policy
When the government uses funds to influence the economy
What is deficit spending?
When a government spends more than they have to stimulate the economy
What core concept from this unit drives stock prices?
Supply and Demand
What causes a surplus?
When there is too much supply and not enough demand?
The tax placed on the assets of someone who has passed away is know as...
Estate Tax
Monopoly
Owning an entire industry allowing to control the price
How do you make money on the stock market?
Pick stocks of companies that become more in demand over time. Diversify portfolio, and have good returns
What could higher interest rates cause?
Less loans being taken out
Lessened economic activity
Give three examples of capital as a factor of production when it comes to teaching
pencils
ipads
pens
any school supplies
What is the point of taxes?
To raise funds for the government
A sales tax stays the same percentage regardless of the cost of the item, leading to a bigger impact on the poor compared to the rich. This is an example of...
A Regressive Tax
Why is it important to diversify stocks?
To keep investments safer so you don't lose all your money
Why would a government lower interest rates?
To encourage people to take out loans and stimulate the economy
Name 3 reasons the price of a jelly donut may go up
Increased demand
Higher cost of ingredients
Inflation
What are tariffs and what is their purpose?
Taxes placed on foreign goods to encourage buying home grown
Income Tax increases the percentage as income becomes higher to take wealth into account. This is an example of...
Progressive Tax
Define balancing the budget
The government doesn't spend more than it makes in order to not go into debt
Why do loans work/why are they important?
Most loans are paid back, and they allow people to purchase things they otherwise couldn't which stimulates the economy
What are the 4 factors of production? Come up with an example and provide one of each for your example
Land
Labor
Capital
Entrepreneurship
What is the difference between mandatory and discretionary spending?
Mandatory- Money congress is required to spend by law
Discretionary- Choice spending such as on research through the appropriations process
What is the difference between a mixed economy and a command economy?
A mixed economy has both public and private ownership, while a command economy has only government ownership
What is opportunity cost and how does it impact producers?
The potential profits missed when a company chooses one solution over another. Producers weigh options and go with the one they think will be more profitable