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55 Cards in this Set

  • Front
  • Back
the activity that a performs well
Ability
A natural talent at something
Aptitude
Things you own that have value
Assets
A sheet that shows your net worth, it lists you assets minus your liabilities
Balance sheet
is all the activities of an individual or group of individuals involved in producing and distributing goods and services to customers
Business
Things like buildings, machines, equipment
capital resources
A statement listing your monthly income and expenses
Cash flow statement
are the people who contribute the physical and mental energy to the production process
human resources
a set of rules by which a nation decides how to distribute its resources to satisfy people’s wants
Economic system
are the people who contribute the physical and mental energy to the production process
human resources
The initiation to combine natural, human, and capital resources to produce goods and services
entrepreneurship
is the lack of something that can be used to satisfy the wants of a group of people
scarcity
are temporary lack of something
shortage
are things we wish we could have
wants
are necessary wants, or things we must have in order to survive.
needs
can be physically weighed and measured
Bike
Clothes
goods
tasks that people or machines perform
Guitar lessons
Massage
Hair cut
services
is anything that people can use to make or obtain what they need or want
resources
is the cost of choosing one thing over another
opportunity cost
is any physical or mental ability that an individual performs well
ability
is a natural talent
aptitude
is a government charge on earnings or other sources of income
*this is the primary tool used by the federal govt to raise $$
income tax
also called FICA
Money raised through this fund is used to pay retirement benefits
Social secutity tax
This money is used for health insurance and hospital insurance
Nearly all people 65 or older are eligible for Medicare
medicare
At the end of each year employers are required to give each employee this wage and withholding statement
form W2
This is a tax collected on the sale of particular goods and services
The tax rate is usually a certain percentage of the price (it is built in to the price)
Examples are gas, alcohol, cigarettes, tires, firearms
excise tax
Foreign businesses pay this tax on goods they want to sell in this country
tariff
This means it is mainly private, rather than public
Most economic resources and businesses are owned by individuals or groups (rather than the govt)
private enterprise system
is the contest between businesses to win customers
competition
is the amount of money left over after a business has paid for the cost of producing the goods and services
Profit
is the idea that businesses act in a responsible and fair way toward their employees and society as a whole
social responsibility
is the paper money and coins provided by the government
currency
These are what you owe other people (Loans, credit cards, lines of credit)
liabilities
is defined as money received by you.
Examples include:
your salary,
a gift from a relative
income
a negative cash flow, spending more money th
deficit
Cash expenses that change a lot from month to month
variable expenses
Your total assets minus your total liabilities
net worth
Cash expenses that stay relatively stable from month to month
fixed expenses
These resources cannot be replaced
nonrenewable resources
The percentage of the workforce looking for work that does not have jobs.
unemployment rate
Long period of very severe economic decline
depression
Prolonged rise in level of prices for goods and services
inflation
Monetary value of all goods and services produced in a country for a stated period of time.
GDP
35. This is an indicator of the value of the goods and services produced for a stated period of time but it is not as accurate because it included American companies that produce goods oversees
GNP
A company that has very little competition
monopoly
The signature of the party whom the check has been written that is necessary for cashing a check
endorsing a check
The point (price) at which the supply and demand meet
equilibrium price
An oversupply of goods and services when demand is less than the supply
surplus
This rule calculates how long it will take for money to double in a savings account based on the interest rate
rule of 72
47. This is another name for balancing your checkbook, making sure your balance matches what the bank statement says.
reconcile
49. These checks have not cleared at the bank yet and therefore don’t show up on your bank statement
outstanding checks
a negative cash flow, when your spending more money than you take in
deficit
another name for the workforce
labor
this law states that consumers want to buy a lot of stuff at a low price and not a lot of stuff at a high price
law of demand
this law states that producers are willing to produce a lot of products for a high price and not a lot of products for a low pricce
law of supply