Key Ideas Chapter 17-20
What are two causes of economic problems
High inflation, to much government spending
Positives and negatives of free-enterprise
Positive- Operate however you see fit Negative- Opens themselves to huge loses
Positives and negatives of credit cards
Positives-Get product right away and can use in case of emergency Negative- High interest rate
What is private insurance
Something a consumer can buy to protect something
Ways to save money
Invest, savings bonds, CDs
Why was social security created and what does it do
It was created so people would have something to fall back on if they ever got injured or when they retire. It is an account that everybody automatically puts money into from their check while others pull out of it.
Why would a company sell stocks? How do stocks work?
They sell stocks to raise money. Each share of a stock represents a part of the corporation. If the corporation loses money you lose money if they gain money you gain money.
Why were labor unions needed in the late 1800s and early 1900s
They were needed because workers worked in unsafe, long hours, and young kids were working
What is social insurance
When the consumer is mandated to have it
Are unions still powerful today
Yes
