Economics Final

Why doesn't GDP include the sale of used goods?

They are created in the previous year and would be apart of that year GDP

Credit card companies are non-profit organizations in charge of regulating your spending.

False

In a capitalist society, the government is the primary owner of goods and services in the economy.

False

What is the main problem with using GDP as the only judge of a country's success?

It measures the country as a whole and not the individual people.

Why do many people see using credit cards as a problem?

It's borrowed money that you don't have yet

List 4 things that should be considered when buying stocks.

1. Change in cost of stock over 6 months 2. Recommendation Rating 3.PEG ratio, 4.and Beta

What is a debit card?

A debit card is a card that uses money that is already in your account.

False, ¨S¨ same

According to the law of supply, as the price of a good decreases, supply will increase.

In economic terms, demand not only refers to simply wanting a good, but what else?

Being able, and willing to pay.

When should you buy stocks?

Buy stocks when they are at a lower Price.

List the main advantages of using credit.

Can help you make a larger purchase, Allows you to get loans, Buy now Pay later, Track Money

Explain the difference between a checking account and a savings account.

Checking accounts are account you can access often, and savings account is a stash fund that is not something you use until you reach of a goal of your savings.

List the 4 sectors of the economy

Consumer, business, government, and foreign.

List the 4 components of GDP.

Consumer, business, government, and net exports

What is calculated in GDP? (components of GDP)

Consumption, investments, government spending, and net exports combined.

The U.S. economic system is best described as a free-enterprise communist society.

False

The only way a person can get into debt is by misusing credit cards.

False

TF: Income taxes are the same standard percentage charged to every citizen no matter how much money you make.

False, based on Income

A tax paid on goods purchased by a consumer is called a property tax

False, it's called Consumption Tax

. A credit score is used to determine the quality of a credit card.

False, it's your score from paying off your card

Owning stocks is a safe, guaranteed way to make money.

False, not guaranteed

Explain how interest rates and fees impact the price of a product when purchasing items with a credit card.

Interest rates are the additional cost when you use a credit card for the lender. Fees are what you owe so the impact of the price is just adding additional cost.

What are 2 ways to improve a credit score?

Pay on time, Use a credit card young

Moving down along the supply curve would cause what to happen?

Moving down the supply curve would cause the price to increase.

Give 2 examples of poor financial decisions when using credit cards

Not paying on time, Paying the minimum every time

How does outsourcing and foreign markets impact the circular flow of economic activity in the U.S.?

Outsourcing and foreign market affects the circular flow because the economic flow causes one shutdown or growth of a business to affect things around it.

What does the PACED acronym stand for and why is it used?

P- Problem A-Alternative C-Criteria E-Evaluate D-Design

When should you sell stocks?

Sell stocks when they are Higher Price

Define substitute and compliments and give an examples of each

Substitute: Can replace one another Example: Coke and Pepsi

Define "supply" in economic terms.

Supply refers to goods and services that people in business are willing to make or do.

How could a credit card user avoid paying interest charges?

The best way to avoid paying interest on your credit card is to pay off the balance in full every month.

Who decides if businesses succeed or fail in a capitalist economic system?

The consumer

What is the law of demand?

The law of demand says that as the price goes up, demand goes down, and vice versa.

What is the law of supply?

The law of supply says that businesses will supply more of a good oro service when the price is high and vice versa.

What is the primary motivation of a business?

To make money

Annual fees are often charged by credit card companies for the privilege of using their services.

True

Both businesses and individuals are required to pay taxes.

True

Exports are goods that leave a country

True

Going into debt means that you cannot repay your bills and money you owe.

True

In a capitalist society, consumers ultimately decide whether businesses succeed or fail.

True

Interest rates benefit the lender(person who deposits or loans money.)

True

Paying taxes is a requirement for all Americans.

True

Private property rights refer to one's ability to own their own goods.

True

Salaries and building rent are examples of fixed costs.

True

The job of the IRS is to collect taxes for the U.S. government.

True

TF:According to the law of demand, if demand increases, price will decrease.

True, ¨D¨ different.

Name 3 factors affecting demand

Wanting something, Willing to buy it, Having resources to buy it

What 3 questions does scarcity cause societies to answer?

What to produce How to produce it Whom to produce it for

Give 2 ways paying the minimum payment on credit cards is dangerous.

You can end up paying more money in the long run, and You can have a high interest rate

What is the difference between exports and net exports?

export-imports= net exports

What is the formula for determining total costs?

fixed cost + variable cost

List the 4 factors of production

land, labor, capital, entrepreneurship