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40 Cards in this Set
- Front
- Back
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What is the root of all evil? |
The love of money |
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what are the 6 biblical purposes of money |
1. Tithe 2. Provide for your family 3. Pay Taxes 4. Save 5. Pay your debt 6. Give to others |
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How we handel our money defines what 4 things? |
1. A meausure of our faith 2. A testing of our faith 3. Defines our Priorities 4.It is a potential trap |
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Are we owners or managers of our money? |
we are managers |
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What is equallbrium price? |
open market where quantity supplied matches quantity demand |
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what is the concept of elasticity demand? |
the degree to which demand for a good or service varies with its price |
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what are some examples of countercylical indicators? |
The price of Gold the price of stock |
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what are some examples of pro-cylical indicators? |
retail sales gross domestic product inflation |
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what is a counter cyclical |
it moves in the opposite direction that the economy |
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what is procylical? |
indicate that the economly is going well |
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what are the potential problems with capitalism |
Capitalism generally leads to opportunity, but inquality of wealth greed can create social ills |
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what are the potential problems with socialism |
workers are less productive workers are less innovative |
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what is the rule of 72? |
reveals the number of years it will take for the principle of an investment to double. divide the interest by 72 and that will be the number of years it will take for investment to double. |
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what is compoundint interest? |
when interst earns interest |
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what is the present value of money? |
how much to put away today/ series for a future amount. |
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what is future value of money? |
what the investment will be worth in the future. |
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what were Adam Smiths key beliefs in his theory to build wealth? |
1.the right to private property 2. the right to own a business and keep all of its profits after tax 3. the right to freedom of competition 4. the right to freedom of choice related to work, where one lives and what one purchases. |
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what refers to theamount of a good or service that people are willing to buy at a specific price. |
the law of demand |
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what are the 3 financial problems that larry burchette identified? |
1. ignorance (of basic principles) 2. indulgence (unrestrained gratification) 3. slothfulness (recognizing a problem and doing nothing to fix it) |
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what is interest? |
the price of barrowing money |
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what is GDP? |
GROSS DOMESTIC PRODUCT the measure of economic activity during a given period within th USA borders |
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what is opportunity cost? |
the missed value of another alternative that is lost when a choice is made. |
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what is tax exempt? |
income that is totally and permanently free of taxes |
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what is inflation? |
the steady rise in the general level of prices |
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how dose the US government measure inflation? |
CPI Consumer price index, measures the amount of inflation for a defined list of products and services. |
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Durring inflation what typically goes up and what typically goes down? |
general level prices go up and purchasing power goes down.
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does income keep up with inflation? |
no |
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what is nominal income? |
What you get paid |
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what is real income? |
reflects purchasing power it is impacted by inflation. |
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what is the fundamental concept behind an economic system? |
scarcity |
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what is a freemarket economy? |
capitalistic |
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what is a commmand economy? |
where the government decides everything. I.E. socialism and communism |
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what is a mixed economy? |
mos economis decisions are made in the market place by individuals. but the government plays a significant role. acting as a referee for market activity anf influenceing the allocationand distribution of resources. |
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how much more will a person make annually with a BA degree than someone with a highschool diploma? |
$20,000- $30,000 a year |
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what is tax sheltered? |
a financial arrangement made to avoid or minimize taxes
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how is finacial security achieved? |
when we spend less than what we make and learn contentment |
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how do you calculate the cost of living comparison? |
how you keep track of your spending vs. how other people keep track of their spending. |
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what is the prefered stage of econimic cycle? |
epansion |
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what are the 4 stages of economic cycle. |
peak, recession, trough, expansion. |
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what is the difference between men and women in relations to what aspect of money management is important for them. |
in a financially unstable environment men feel like a failure and women feel insecure. |
