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

34 T & F

41 Multiple Choice

25 Matching—VOCAB!!

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)

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

What are most PUBLIC WANTSsatisfied by?◦Local, state, & federal Government

What must businesses provide to consumers in order to satisfy their wants and needs?◦Goods and services

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

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

What are the means to produce goods and services called?◦ Factors of production

Give 2 examples of human resources◦ Teacher, doctor, plumber, lawyer,

etc.

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.

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)

What does gross domestic product (GDP) measure?◦Value of goods and services that a country produces

What does downsizing cause?◦UNEMPLOYMENT

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.

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

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

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

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)

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

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

Know terms & concepts

Bait and Switch-advertising item at low price & trying to sell you a more expensive item

Recycling-reusing products again

Name the seven rights of a consumer

1. Informed

2. Choose

3. Safety

4. Heard

5. Problems corrected

6. Consumer education

7. Service

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

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

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

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 15-30 yrs

Do items cost more or less when you buy on credit?

MORE you will need to pay interest

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

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

Truth-in-lending disclosure-consumers 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

Know terms and concepts

Equal Credit Opportunity Act-your credit application can only be judged on your financial responsibility

Fair Debt Collection Practices Act-protects consumers from collection agents & prevents unnecessary harassment.

For what reasons can you be denied credit?

Too much debt already, low income, poor credit history of paying late

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

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

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.

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

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

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

Name 4 types of savings accounts1. Passbook savings

2. statement savings

3. Certificate of deposit

4. Money Market fund

Name 2 types of traditional savings accounts◦ Statement savings

◦ Passbook savings

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

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.

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

Preferred stockholders

What is the most popular type of home?

Single-family homes

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

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.

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

What is the greatest threat to property? Fire or flood?

Fire

The eleven perils (do/do not) include riots and windstorms.

DOES INCLUDE

Endowment insurance- based more on savings than death

Pre-existing condition-serious health condition that you have before you get insurance

Which costs more? Term insurance or cash-value insurance?

CASH VALUE insurance

Who names the beneficiary of a life insurance policy?

YOU DO

100 questions

34 True or False

41 multiple choice

25 matching

Study…GOOD LUCK!!