Economics Semester Final

the fundamental economic problem of having limited resources to meet unlimited wants and needs

study of how people and societies use limited resources to satisfy their needs and wants

the value of the next best alternative forgone when a decision is made

the relationship between the availability of a good (supply) and the desire for it (demand), which determines price

an economic system where decisions about production, investment, and distribution are driven by market forces and prices

the rate at which the general level of prices for goods and services rises, reducing purchasing power

the total monetary value of all goods and services produced within a country's borders over a specific period

a market structure where a single firm dominates and controls the supply of a good or service

government decisions about spending and taxation to influence the economy

situation where no individual would be better off doing something different

factors that motivate individuals and businesses to make decisions in their best interest, such as profits, wages, or taxes

people should be free

work is good

don't steal

don't covet

honest measures

trade is good

love your neighbor as yourself

take care of widows and orphans

be a good samaritan

honor those in power

a system that requires absolute obedience to rulers of a society

an economic system based on private ownership of the factors of production

a system in which the society's leaders make all economic decisions

a type of economic system where the government controls all aspects of the economy

type of command where there is no private ownership of property and little to no political freedoms

the effort of two or more people, acting independently, to get the business of others by offering the best deals

the way a society uses its resources to satisfy its people's unlimited wants

any place or situation in which people buy and sell goods and services

an economic system that has elements of traditional, command, and market economies

the rights of individuals and groups to own property

type of command economy where government owns some or all of the factors of production

a situation in which people concentrate their efforts on the areas in which they have an advantage

economic system where families, clans, or tribes make economic decisions based on customs and beliefs

limited government involvement in the economy

government provides financial support to a failing company to prevent bankruptcy and default on its financial obligations

allocation of resources or employment for favored individuals belonging to groups regarded as disadvantaged or subject to discrimination

money, food, or other resources given or lent by one country another, aimed at promoting economic development and poverty alleviation in developing countries and lead to unintended consequences

aimed at monitoring the activities of individuals within a country, lead to erosion of of privacy rights and have effects on free speech and dissent, also leads to abuse of power by government agencies

form of government regulation requiring a license to pursue a particular profession or vocation for compensation, state or federal regulation

set of actions to control a nation's overall money supply, often have unintended consequences of asset bubbles, inflationary pressures, and currency devaluation

price ceilings or floors implemented to control cost of goods and services which can lead to shortages or surpluses

government-mandated price for goods and services to improve standard for low-wage workers but lead to job losses, reduced work hours, and increased automation

benefit given to an individual, business, or institution, usually by the government and can lead to distortion of market incentives and lead to overproduction

tax imposed by the government on imports or exports of goods, these protectionist measures can lead to retaliatory actions from trading partners, reduces overall trade and economic growth

taxing authority imposes a financial obligation on its citizens or residents, taxes are necessary for funding government activities, but excessive taxations can discourage investments, entrepreneurship, and consumption

law that controls the way that a business can operate, excessive or poorly designed ones impose compliance costs on businesses, particularly small businesses, which reduce innovation

money earned from work, investments, or other sources

the cost of goods, services, and financial obligations

a plan for managing income and expenses

savings set aside for unexpected expenses (Dave Ramsey recommends 3-6 months of expenses)

money owed to creditors, such as loans or credit card balances

the cost of borrowing money, expressed as a percentage

the original amount of money borrowed or invested

money set aside for future expenses

the movement of money in and out of your accounts

total assets minus total liabilities/debts

a bank account used for daily transactions

a bank account used for storing money and earning interest

a savings account with a fixed term and higher interest rate

a savings account with limited check-writing privileges

interest earned on both the principal and previously earned interest

a numerical rating of a person's credit history

a detailed record of a person's credit history

a loan used to purchase a home

a loan used to finance a vehicle

a loan used to pay for education expenses

debt from credit cards, car loans, and personal loans

a strategy for paying off debt from smallest to largest

a strategy for paying off debt with the highest interest rate first

a legall process for people unable to pay their debts

a retirement savings plan offered by employers, often with a match

a personal retirement savings account

a retirement account where the contributions are taxed upfront and withdrawals tax-free

a pool of money from multiple investors used to buy a variety of investments

a type of mutual fund that tracks a market index

spreading investments to reduce risk

a share of ownership in a company

a loan made to a company or government that pays interest

the cost of an insurance policy

the amount you pay before insurance covers the rest

covers damage or injury you cause to others

covers medical expenses

replaces income if you become unable to work

life insurance that lasts for a set number of years

life insurance with an investment component

total earnings before deductions

earnings after taxes and deductions

a tax form showing wages earned and taxes paid

an expense that lowers taxable income

a dollar-for-dollar reduction in owed taxes

Dave Ramsey's 7-step plan for financial success

aggressively paying off your debt to gain financial freedom

giving every dollar a purpose in the budget

avoiding debt and paying for things in cash

living without financial stress by following sound money principles