Economics and Finance Flashcard

Front

What is the basic economic problem that arises because resources are limited?

Back

Scarcity

Front

Back

Front

What is a credit score primarily used for?

Back

Assessing your creditworthiness

Front

Which of the following is an example of a fixed expense in a budget? Groceries, Rent, Entertainment, Clothing

Back

Rent

Front

If the demand for a product increases and the supply remains unchanged, what is likely to happen to the price of the product?

Back

The price will increase

Front

Which of the following is a type of investment that represents ownership in a company? Bonds, Stocks, Savings Account, Certificate of Deposit

Back

Stocks

Front

Calculate the simple interest earned on a $1,000 investment at an annual interest rate of 5% over 3 years.

Back

$150

Front

What is the term for the cost of the next best alternative that is foregone when a decision is made?

Back

Opportunity Cost

Front

Which of the following is a strategy to improve your credit score?
Max out your credit cards,
Pay bills on time,
Close old credit accounts,
Apply for multiple credit cards at once

Back

Pay bills on time

Front

What is the primary goal of setting personal financial goals?

Back

To plan for future financial security