Fulmers 9 weeks exam

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nramos93
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85135
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Fulmers 9 weeks exam
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2011-05-10 22:38:59
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Fulmer's Semester Exam
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  1. Inflation is...
    A general increase in overall price levels
  2. #1 measure of inflation?
    Consumer price index
  3. Acceptable rate of inflation is...
    2% per year
  4. Inflation can be defined as...
    Too many dollars changing too few goods
  5. Prices rise, value ($) falls. why?
    Because your purchasing power (real income) falls
  6. #1 measure of economic growth is...
    Gross domestic product: the total dollor value of all final, new goods and sevices produced in a nation in 1 year
  7. Economy is said to be in a recession When?
    When the GDP is below the base year for two quarters in a row (6 months)
  8. The cost of something Is...
    What you give up to get it!!! ( opp lost is the opp cost)
  9. People do more of something when?
    The reward increases and less of something when the penalty increases
  10. People initially respond to what?
    Incentives
  11. Acceptable rate of unemployment is?
    5%
  12. Role of the federal reserve Bank
    Control intrest rates and the money supply through monetary policy
  13. Fiscal policy is used by...
    Congress and the president to stabalize the economy by changing taxes and government spending
  14. Budget deficit
    Government spending exceed revenues in one year
  15. Our current deficit is
    $1,500,000,000,000
  16. National debt is...
    $13,800,000,000,000
  17. Regressive tax takes ...
    A larger percentage from lower incomes
  18. Progressive tax takes...
    A larger percentage from lower incomes
  19. A proportional (flat) tax...
    Takes the same percentage from all incomes.
  20. Any tax not based on income...
    Tends to be regressive
  21. Exports?
    G/s sold to other countrires
  22. Imports?
    G/s bought from other countries
  23. Trade deficit occurs when?
    Imports are greater than exporrts
  24. Trade surplus occurs when?
    Exports are greater than imports
  25. Fringe benefits are...
    Employer supplied benifits in addition to wages
  26. You should have an emergency fund equal to...
    3-6 months of your salary
  27. What to do with a credit card.
    • •shop around for the lowest credit card interest rate
    • •pay dept asap!
    • •pay more then the minnimum monthly requirement
  28. How do credit card companies make money?
    By keeping you in dept!
  29. What is FICA?
    Federal Insurance Contribution Act
  30. FICA is also know as...
    Social security
  31. Social security is?
    A payroll tax on current workers to pay income to currebt retires
  32. Medicare is?
    A federal health insurance program fir retired people paud for during your working years.
  33. What is Medicaid?
    Federal and state healtg insurance program paid for by taxes for low income people
  34. What is economics?
    Economics is the study orlf choices people make to satisfy unlimeted needs and want to with limited economic resources
  35. What is the US economic system?
    Market econony or capitalism with heave reliance on market forces in the private sector
  36. Four features of capitalism:
    • 1. Right to own property
    • 2. Self- interest profit motives
    • 3. Consumers rule
    • 4. Competitions
  37. What is bankruptcy?
    A legal declaration of inability to oay debts. Stays on your credit score for 10 years
  38. Rules for buying a home:
    • 1. Do not borrow more than 2 times your annual income
    • 2. Your monthly house (or rent) payment should no br more than (1/3) of your monthly net income

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