Economics Flashcard

Front

What is the best definition of supply?

Back

The amount of a good or service that producers are willing and able to offer for sale at a given price.

Front

What does the circular flow model illustrate?

Back

How households, firms, and governments interact in the economy.

Front

At what level of government do taxes exist? Local, State, Federal, All of the above

Back

All of the above

Front

What is the best definition of demand?

Back

The amount of a good or service that consumers are willing and able to purchase at a given price.

Front

Which of the following is the best definition of a financial exchange?

Back

Transferring money between parties in exchange for goods or services.

Front

What does the phrase “opportunity cost” refer to?

Back

The value of the next best alternative that we forgo when we make a choice.

Front

Which of the following is NOT included in the equation to calculate simple interest?
The principal, The interest rate, The time, The desired return on investment

Back

The desired return on investment

Front

What is saving?

Back

The act of setting aside a portion of one's income or resources for future use.

Front

What is investing?

Back

The act of allocating money or resources with the expectation of generating a profit or return in the future.

Front

Which of the following is true of the relationship between compound interest and simple interest? Options: All else equal, an account that grows with compound interest will grow faster than an account that grows with simple interest., All else equal, an account that grows with simple interest will grow faster than an account that grows with compound interest., All else equal, an account that grows with compound interest will grow at the same rate as an account that grows with simple interest., All else equal, an account that grows with compound interest will grow slower than an account that grows with simple interest.

Back

All else equal, an account that grows with compound interest will grow faster than an account that grows with simple interest.