Economics CIS – (Sem. 1) – Flashcards
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How does a person maintain good credit rating?
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Paying bills on time and borrowing what you need and can afford
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Money left over after paying bills
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Discretionary income
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What is an entrepreneur's income based on?
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Profit
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The study of economics involves looking at
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Unlimited wants and limited resources
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Regular payment by employer to employee after he/she stops working
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Pension
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Money given to a borrower
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Credit
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Up to what amount does the FDIC insure checking accounts?
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$250,000
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What best defines the term economics?
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The study of the production and distribution of goods and services
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Mitch's car loan is a 60 month loan. What is this amount of time called?
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Term of the loan
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Luke's family received a lump sum from the insurance company after Luke died. What is Luke's family?
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Beneficiary
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What type of checking account is designed for people that intend to do all or most of their banking electronically?
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Electronic/ATM
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What was the Federal Deposit Insurance Corporation created to insure?
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Deposits in a bank
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How often is it recommended that you check your credit report?
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Once a year
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When a company withholds money from employees paycheck (before taxes) and often offers matching incentive
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401(k) plan
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Retirement savings plan where money is put aside AFTER taxes
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Roth IRA
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Roth IRA deposit limit below 50
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$5,000
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Roth IRA deposit limit over 50
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$6,500
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Federal program that makes payments to workers of minimum age to help fund retirement
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Social security
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Social security deduction
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FICA
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How long does bankruptcy remain on credit report?
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10 years
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Amount that an insurance policyholder must pay before receiving reimbursement from the insurance company
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Deductible
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Money paid to insurance companies periodically
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Premium
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APR?
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Annual percentage rate of charge
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All of the other options that are given up when a business makes one choice over another are called
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Trade-offs
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The cost of an economic decision that is the most attractive option that is given up because one choice was made over another
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Opportunity cost
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Who was known as the father of economics?
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Adam Smith
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eliminates business monopolies
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Sherman Antitrust Act
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Results of Dartmouth College v. Woodward case?
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Companies have same rights as natural person
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All economic questions and problems arise from
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Scarcity
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What terms did Adam Smith use to discuss the motivations of producers in the market place?
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Invisible hand
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What is the main reason people make economic choices?
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Resources are limited
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What are some important features of the Keating-Owen Act of 1916?
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Child labor laws enacted
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Adam Smith developed an important economic theory that does what?
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Links unintended consequences with impact on society
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6 Primary Economic goals?
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efficiency, equity, freedom, growth, innovation, security
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Focused on family unit, comprised of small societies, slow growth
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Traditional economy
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Individuals act on own self-interests kind of economy
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Free market economy
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Ensures that consumers will be able to purchase products at the lowest possible price
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Competition
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What best describes the economic goal of efficiency?
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Utilize resources with maximum output
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Which goal of the U.S. economy seeks to compensate workers appropriately for the tasks they perform?
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Equity
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T/F: Equality is an advantage of a free market economy
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False
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Which goal of the U.S. economy makes people feel protected by ensuring the availability of staple products?
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Security
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Which of the following is a disadvantage of free market economies?
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Some consumers not paid fairly and equally
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Government oversees economic decisions
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Command economy
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What is a priority in a command economy?
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Equity
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What does the term "laissez-faire" mean?
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Hands off
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How would the government of a mixed economy put money back into the economy?
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Purchase of goods and services needed in society
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The study of the economic behavior of small units
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Microeconomics
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4 major cash transfers
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Social security, unemployment insurance, wokers compensation, TANF
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Money given to workers who are injured on the job
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Workers compensation
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Federal payments to state governments who run own welfare programs
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TANF
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Eligible people recieve goods/services from government for discounted or free
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In-Kind benefits
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Which entrepreneur invented the color television set?
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Peter Goldmark
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Monetary policy is best described by
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The actions the Federal reserve takes to manage money supply
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Which type of taxes apply to products that are brought in from other countries?
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Import taxes
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Who presents the final federal budget to Congress at the beginning of the calendar year?
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President
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The study of the behavior of entire economies is called
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Macroeconomics
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Which level of government usually funds police forces?
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Local and state
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What impact do low interest rates have on the economy?
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Foster spending and investing
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What is the main idea of the Commerce Clause in the U.S. Constitution?
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congress controls business between U.S. and foreign countries
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Checking account requiring high balance and account holder earns interest
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Interest bearing
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Fee charged to those who spend more than they have in checking account
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Overdraft fee
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List of fees associated with checking account
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Fee schedule
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Material comfort that a family or society has attained
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Standard of living
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ATM means...
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Automated teller machine
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When saving money, what should you save for first?
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Emergency fund
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Does the 401(k) plan set aside money BEFORE or AFTER taxes?
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before
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Nickname/name better known as
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Alias
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Term for amount of money borrowed from bank
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Principal
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After 1941, Congress was given what power?
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Regulate employment conditions
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T/F: Sales taxes are a source of revenue for Federal Government.
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False
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What level of government usually funds school districts?
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State
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Biggest revenue source for local governments?
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Property taxes
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Which taxes apply to resources like alcohol, tobacco, and gasoline?
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Excise taxes
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What taxes apply to inherited wealth?
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Estate taxes
