Chapters 1, 2, 3, 5, 6, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, & 35

Transcription

1 Chapters 1, 2, 3, 5, 6, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, & 35

2 34 T & F 41 Multiple Choice 25 Matching VOCAB!!

3 Know terms and concepts: Goods-material things that can be weighed & measured Services-tasks people or machines perform Private wants-individual wants (tv, laptop, smart phone)

4 Know terms and concepts: Public wants-society wants (roads, schools, hospitals) Needs-necessary wants for survival (water, food, shelter) Business-seeks profit by providing goods & services

5 What are most PUBLIC WANTS satisfied by? Local, state, & federal Government What must businesses provide to consumers in order to satisfy their wants and needs? Goods and services

6 Know terms and concepts Scarcity-shortage of economic resources Natural resources-raw materials in nature to produce goods Nonrenewable resources-limited resources Ex:oil, coal Factors of production-economic resources used to produce goods Ex:natural, human, capital, entrepreneurial

7 Know terms and concepts: Human resources-knowledge & skills people have Entrepreneurial resources-initiative to improve goods & services Ex:Bill Gates, Steve Jobs, Henry Ford Capital resources-buildings, machines, materials Ex: Trucks, computers Economic indicators-figures to measure economic performance

8 What are the means to produce goods and services called? Factors of production Give 2 examples of human resources Teacher, doctor, plumber, lawyer, etc.

9 What does a society need to produce goods and services? Need- natural resources, human resources, capital resources, entrepreneurial resources The economy of many countries is based on its Natural resources.

10 Know terms and concepts Inflation-general increase in costs of goods National debt-how much a country owes Budget surplus-government collects more in tax dollars than it spend (VERY RARE)

11 What does gross domestic product (GDP) measure? Value of goods and services that a country produces What does downsizing cause? UNEMPLOYMENT

12 Know terms and concepts Entrepreneur-person who recognizes a business opportunity & assumes the risk of starting it Business plan-written description of the business that describes all aspects of it.

13 What part of a business is the owner responsible for? Everything List some disadvantages of being an entrepreneur Long hours, in charge of everything etc. Why do some small businesses fail? Run out of money

14 Know terms and concepts: Sole proprietorship-business owned by 1 person Partnership-business owned by 2 or more people who share the risks and rewards Corporation-business owned by many people; can be stockholders Nonprofit Organization-main purpose is to provide a service not to EARN a PROFIT Cooperative-group of people that work together that share resources and costs

15 What is a corporation controlled by? Board of directors Who owns the corporation? Stockholders/shareholders Give 2 examples of a nonprofit organization Hospital, church, Red Cross Give one example of a cooperative Ocean Spray

16 Know terms and concepts: Consumer-person who selects, purchases, and disposes of goods Promotional sale-sale on a new product or one in season Impulse buying-purchase things on spur of the moment Limited-line retailer-store that only sells specific types of goods (Lids, Foot Locker, Baby Gap)

17 Give 1 example of a limited-line retailer Lids, Foot Locker, Ace Hardware, Baby Gap Should you buy only brand name products? Why or why not? No they re not always better quality

18 Who has better prices-a department store or a discount store? Discount store Is the most expensive item always the best? Why or why not? No, price is not necessarily a reflection on quality

19 Know terms & concepts Bait and Switch-advertising item at low price & trying to sell you a more expensive item Recycling-reusing products again

20 Name the seven rights of a consumer 1. Informed 2. Choose 3. Safety 4. Heard 5. Problems corrected 6. Consumer education 7. Service

21 Give an example of the right to be informed Know ingredients of a product Know the safety standards What can a nutrition label tell you? Calories, sugar, fat, number of servings, sodium etc If you wash a sweater differently than what the label says and if gets ruined, can you sue the manufacturer? Why or why not? No. It is your responsibility to be informed

22 Know terms and concepts Public utility-operates without competition Legal monopolies-can operate without competition Recall-manufacturer takes back product to fix or repair Licenses-legal permit to conduct business

23 The size of a claim in small claims court can be as low as what? $25 Can you go to small claims court without a lawyer? Yes, no lawyer is needed

24 Know terms and concepts Credit-buying now & paying later Consumer credit-credit used by consumers for personal reasons Charge account-credit provided by a store for consumers to buy their products Mortgage-type of installment loan that can be for yrs

25 Do items cost more or less when you buy on credit? MORE you will need to pay interest

26 know terms and concepts Credit bureau-collects information about your credit history Capacity-your ability to pay Secured loan-loan backed by collateral Finance charge-total amount it cost to finance a loan Credit limit-maximum amount you can charge on an account. Cash advance-borrowing money on a credit card rather than making a purchase

27 What is one of the first things a creditor considers before lending you money? Your ability to pay, also known as your capacity Should you make more than the minimum payment on a credit card? Why or why not? You should always make more and it will cut down on interest

28 Truth-in-lending disclosureconsumers must be informed of all the costs of borrowing Right to be notified-must be notified when your credit report is investigated Collection agent-person that collects on overdue bills

29 Know terms and concepts Equal Credit Opportunity Act-your credit application can only be judged on your financial responsibility Fair Debt Collection Practices Actprotects consumers from collection agents & prevents unnecessary harassment.

30 For what reasons can you be denied credit? Too much debt already, low income, poor credit history of paying late

31 Know terms and concept Budget-plan for the using your money Gross pay-total pay before taxes & other deductions Deductions-money taken out of your paycheck for retirement, insurance, union dues, federal taxes, state taxes, & more Net pay-your TAKE HOME pay; the money you have to save or spend Budget Variance-difference between expected expenses & actual expenses

32 Why is it important to have a plan for savings? Protects against unplanned expenses How does self-employed person pay their taxes? Pay taxes directly to the government on personal income tax

33 Demand Deposit-when you write a check you re demanding the bank to release the money Interest-bearing account-checking account that earns interest Stop Payment-order for bank to NOT CASH a check Canceled check-check that has been cashed & the money has been taken out of your account.

34 Overdrawing-writing a check for more than what s in your account. Online banking-ability to check your balance, pay bills, transfer money 24 hours a day, 7 days a week, 365 days a year. Signature card-card you have to sign so bank can verify your identity

35 What happens if you write a check to someone without enough funds to cover it? Bank will charge you a fee for the bounced check

36 Know terms and concepts Simple interest-interest only earned on the amount deposited Cost of savings accounts-if you are saving money you can t spend it on other things opportunity cost Liquidity-how quickly an asset can be turned into cash

37 Name 4 types of savings accounts 1. Passbook savings 2. statement savings 3. Certificate of deposit 4. Money Market fund Name 2 types of traditional savings accounts Statement savings Passbook savings

38 Know terms and concepts Yield-amount of money the investment earns (similar to interest rate) Stock exchange-place to buy & sell stock Mutual fund-investing in a wide variety of stocks & is a relatively safe investment

39 Day trading-buying and selling stock on a minute by minute basis Blue-chip stocks-stocks from large, well established companies & are a relatively low risk investment. Speculative stocks-high risk stocks & are relatively new firms.

40 If a company fails, who is paid first? Common stockholders or preferred stockholders? Preferred stockholders

41 What is the most popular type of home? Single-family homes

42 Know terms and concepts Liability insurance-protects you in case you hurt someone in an accident Collision insurance-pay to repair YOUR car Claim-requesting the insurance company to pay for damage

43 Which is higher? Insurance for an old car or insurance for a new car? New car. Because it is worth more & costs more to repair a brand new car.

44 Renter s Insurance-covers your personal property Business insurance-businesses need property & liability insurance in case something happens Homeowner s insurance-property & liability insurance for your house Liability protection-protects you in case someone is hurt on your property Replacement value- you receive full cost of replacing or repairing an item

45 What is the greatest threat to property? Fire or flood? Fire The eleven perils (do/do not) include riots and windstorms. DOES INCLUDE

46 Endowment insurance- based more on savings than death Pre-existing condition-serious health condition that you have before you get insurance

47 Which costs more? Term insurance or cash-value insurance? CASH VALUE insurance Who names the beneficiary of a life insurance policy? YOU DO

48 100 questions 34 True or False 41 multiple choice 25 matching Study GOOD LUCK!!