Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

55 Cards in this Set

  • Front
  • Back
the activity that a performs well
A natural talent at something
Things you own that have value
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
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
is the lack of something that can be used to satisfy the wants of a group of people
are temporary lack of something
are things we wish we could have
are necessary wants, or things we must have in order to survive.
can be physically weighed and measured
tasks that people or machines perform
Guitar lessons
Hair cut
is anything that people can use to make or obtain what they need or want
is the cost of choosing one thing over another
opportunity cost
is any physical or mental ability that an individual performs well
is a natural talent
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
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
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
is the amount of money left over after a business has paid for the cost of producing the goods and services
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
These are what you owe other people (Loans, credit cards, lines of credit)
is defined as money received by you.
Examples include:
your salary,
a gift from a relative
a negative cash flow, spending more money th
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
Prolonged rise in level of prices for goods and services
Monetary value of all goods and services produced in a country for a stated period of time.
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
A company that has very little competition
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
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.
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
another name for the workforce
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