Economics Chapter 13-15
Automobile insurance is an example of which kind of insurance?
Property and liability insurance
The price tag on both the West coast on the Hippity Hop CDs was $14. Although Lonnie would have loved to buy both, they were too expensive. Lonnie bought Hippit Hop. WHat was the opportunity cost?
West Coast CD
Budget
a plan for one's expenses and income
Balanced bdget
a plan in which expenses are equal to incom
Disability Insurance
a program that pays cash benefits to people who can't work because of illness or an accident that occurred off the job
Workers' compensation
a program that pays cash benefits to persons who are injured or disabled by a job-related accident
Retirement insurance
a program that pays monthly pensions to person 62 years old and over who no longer work
Unemployment Insurance
a program that provides cash benefits for a limited tome to people who have lost their jobs
Survivors' insurance
a program that provides cash payments to widows and widowers and children of deceased workers
Medicare
a program that provides hospital and medical benefits to elderly and disabled persons
Surplus
a situation whereby one's income is greater than one's expenses
Premium
a sum of money paid periodically to the insurance company
Insurance
a way of protecting ourselves and other aganist financial loss
As a first step in financial planning, one should
define those personal goals that will cost money
Which one of the following items is part of estimated income?
earnings
Health Insurance
plays all or parts of hospital and medical bills
The person who buys an insurance policy in his/her own name is called
policyholder
Personal Liability Incurance
provided protection against claims arising from injury on a homeowner's property
Long-term goal
something to strive for in the distant future
Short-term goal
something to strive for in the near future
Fixed expenses
spending that doesn't change from month to month
Variable expenses
spending that is not the same each week or month
Which of the following insurance policies provides a means of savings as well as financial protection?
straight life
The least expensive $100k life insurance that a person can buy is called
term insurance
adf
a
Budgets are valuable for
all families
Social Insurance
any form of insurance provided by a government
No-Fault Insurance
automobile insurance that requires the insurance company to pay damages no matter who are responsible
Which one of the following items is classified as a fixed expenses n typical student's budget during the school year?
care fare to schoool
Extended coverage
covers losses due to windstorms, riots, or plane crashes
Owning an accident insurance policy reduces the
financial losses to the insured resulting from an accident
Budgets should be
flexible
Wise money management
helps you to make the most of the money that you have
Income
money received from any source
Principle
money that you originally put in a savings account
Beneficiary
person who receives insurance money in the event o the policyholder's death
Social Security
the United States social insurance programs
Risks
the chances that we may suffer harm or loss
Policy
the contract between the insured and the insurance company
Cash Value
the dollar value of a life insurance policy if turned in or used to borrow from
Financial Planning
writing down one's financial goals and means to achieve them
Putting first things first in a budget means that
you must first plan obtaining money and spending or those things that are most important to you