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39 Cards in this Set
- Front
- Back
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economics |
the study of production, distribution and consumption of goods and services |
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inflation |
increase in the general price level of goods and services causing a decrease in purchasing power |
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deflation |
decrease in the general price level of goods and services typically caused by reduction in the supply of money |
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economies of scale |
increase in the efficiency of production or services offered as the number increases |
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supply |
total amount of a good or service that is produced at a specific price and available to a market |
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demand |
total amount of a good or service that consumers would purchase consume at a specific price in the market |
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equilibrium price |
point at which quantity demanded equals the quantity supplied |
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wage |
payment of money for labor or service on a hourly basis |
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salary |
payment of money for labor or service on an annual basis |
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payroll witholding |
amount held from your gross income to pay for specific taxes insurances and retirement contributions |
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disposable income |
amount remaining to spend or save after all financial obligations are satisfied |
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debts |
an obligation for funds borrowed |
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budgeting |
process of managing income an expenses to accomplish a specific purpose |
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need |
good or service that represents life necessity |
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want |
good or service that are option and not life necessity |
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expenses |
the cost required in exchange for some benefit or service |
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saving |
regular budgeted amounts held for the specific purpose of paying liabilities and expenses if income is interrupted |
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investment |
exchange of money for the purpose of a future gain |
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diversification |
strategic allocation of investments to manage risk |
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portfolio |
group of financial vehicles held by an individual |
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stocks |
investment offering ownership in a company and claim on a portion of their assets |
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bonds |
investment offered as a debt to a company with defined terms and maturity date |
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mutual fund |
singular investment comprised of a pool of many different investments operated by a money manager |
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defined contribution plan |
retirement plan in which an employer offers a specific amount paid into your retirement account annually |
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defined benefit plan |
retirement in which an employer promises specific benefits based on years of service completed |
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401k |
retirement plan that allows deferred tax contributions. tax deferred until withdrawals are made from the account |
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contribution |
amount of a deposit into a retirement account |
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premium |
cost of an insurance policy |
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deductible |
amount of money to be paid b a person before insurance benefits are assessed |
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philanthropy |
investment in society to improve people and circumstances that could not create the investment themselves |
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appreciation |
increase in value over time |
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depreciation |
decrease in value over time |
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interest rate |
percentage of a sum of money charged or paid for its use |
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cost benefit analysis |
process of weighing total costs against expected benefits to determine the best option available |
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opportunity cost |
difference in value and benefit between competing options |
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time value of money |
financial approach to calculate past, current and future values |
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debit card |
electronic bank card that allows immediate access to normal accounts like checking and savings |
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credit card |
electronic bank card that allows immediate creation of debt based on transactions charged to the account |
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e-banking |
ability to manage bank accounts through the internet without visiting a banking branch or location |
