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33 Cards in this Set
- Front
- Back
- 3rd side (hint)
Scarcity |
Basic Economic Problem that results from a combination of limited resources and unlimited wants |
Wanting a lot not having enough |
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Factors of Production |
Resources of land labor capital and entrepreneurship used to produce food and service |
Think about the farmer |
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Opportunity Cost |
Vale of the next best alternative given up for the alternative that was chosen |
What is it going to cost you to leave this ? |
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Macroeconomics |
The branch of economics dealing with the economy as a whole and decision-making by large units such as government |
Who governs everyone ? (The president, branches ) |
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Command Economy |
Type of economy where the government controls the factors of production and makes all the decisions of the use |
Who is always in Comand of the us |
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Microeconomics |
The branches that deal with smaller units such as individuals and firms |
Micro = little |
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Laissez-Faire |
Economic System where the government minimizes their interference with the economy |
Let things be the way they are without interfering |
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Usury law |
Law restricting the amount of interest that can be changed for credit |
How much interest for credit? |
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Collateral |
Something of value the barrow let's the lender claim if a loan if it is not repaired |
A refrigerator |
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Annual percentage rate |
Cost of credit expressed as a yearly percentage |
How much is it for the year |
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Bait and Switch |
Ad that attracts consumers with low priced product then tries to sell them higher priced products |
Ad&switch |
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Competitive advertising |
Advertisement that attempts to persuade consumers that a product is different from and Superior to any other |
Coke & pepsi |
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Economic equity |
The attempt to balance an economic policy so that everyone benifits fairly |
Equity=equally |
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Profit incentive |
Desire to make money that motivates people to produce and sell goods and services |
Profit=money // incentive =intiative |
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3 major types of economic systems |
Traditional - do things they have always been done Command- government Market-everyone does whatever they want |
Do things how they've always been // government // The U.S |
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Six important characteristics of enterprise |
limited role of government , freedom of Enterprise, Freedom of Choice , profit incentive , competition, private property |
Uhh.. |
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Three goals of free-enterprise system |
Freedom , efficiency and growth |
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What are 2 types of advertising |
Competitive and informative |
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What type of goods do people typically use installment debt to buy? |
Durable goods because they will last longer |
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How does finance charge differ from an annual percentage rate? |
Find A change is the monthly credit in cash and annual percentage rate is the yearly rate and percentage |
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What are six basic lending institutions in our economy? |
Commercial Banks, saving and Loan associations, saving banks, credit union Finance Company, consumer finance companies |
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What does the Equal Credit Opportunity Act of 1974 prohibit? |
Discrimination on the people wanting credit based on race, religion, national origin, gender ,marital status and age |
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What is the difference between a secured and an unsecured loan? |
A secured loan is with a collateral given but an unsecured loan is just a promise made by the person to pay |
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what is the difference between scarcity and shortages? |
Scarcity is people having unlimited wants but not enough time or money -while a shortage is a temporary thing |
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What is the condition that results because wants are Unlimited? |
Scarcity |
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what is the truth in Lending Act? |
It requires creditors to keep consumers fully aware about cost and conditions of Borrowing |
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what is disposable income? |
An income that a person has left over after taxes are paid |
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what is a trade-off? |
Sacrificing the one good to purchase another product or produce |
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What is a principal? |
The principles is the amount of money originally borrowed |
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Who is John Stuart Mill and what did he write? |
John Stuart Mill was an English philosopher that said that all distribution of wealth should be distributed depending on laws given by the government |
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What makes a good a durable good? |
An item that is able to last more than 3 years is considered a durable good and can be used for collateral |
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What is Credit Union? |
An institution that is owned operated by its own members and only gives low-interest loans only to its primary members |
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What is a secured loan? |
A loan that is done with a colateral given |
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