Incentives
What is economics?
The study of how people get the goods and services they want and need
What is competition?
Actions of two or more rivals to sell or buy goods or services
What is the Federal Reserve?
The central bank of the United States
What are taxes?
Money paid to the government
What is credit?
An arrangement where a buyer obtains a good or service, but pays for it later or over time
What does supply & demand help to determine?
The price of a good or service
What is an economy?
The production and use of goods and services in a society
What is debt?
An amount of money, service, or property owed to someone
What is a budget?
Plan or record of incomes and expenses
What is one type of credit?
Any of the following is correct:
Credit card
Loan
Service credit
Installment credit
What does an entrepreneur do?
Starts a business to make a profit
How does encouraging competition make sense in a democracy?
Americans value choices like where and how to do business, where to work, and what products to buy
What can help people and businesses reach their goals faster?
A loan
What is the term for an amount of expenses that exceed income?
Deficit
Using a credit card can end up costing you (more or less?) money.
What are incentives?
Something that encourages a person to make a choice or take action; motivations
What type of economy is planned and controlled by the national government?
Command economy
What is interest?
Interest is the cost of borrowing money
What is the opposite of deficit?
Surplus
What is the U.S. Treasury?
The department of the U.S. government responsible for printing currency, issuing securities, collecting taxes, and helping manage the federal debt
What is the term that describes how people are free to make choices, like starting their own business?
Market Economy
Name the four types of economic systems.
Command, Market, Mixed, and Traditional
If the Fed increases interest rates, banks will make (fewer or more?) loans.
Fewer
What is the name for government income?
Revenue
Who currently has the power to approve spending increases that go over the national budget?
Congress