You work for a non-profit hospital. Instead of a 401(k), what retirement savings plan will you likely be offered?

You set up a retirement account on your own (not through an employer). Which account is this?

You want an account where contributions are tax-deductible now and withdrawals in retirement are taxed. Which do you choose?

You want to pay taxes now but have tax-free withdrawals later. Which do you choose?

You want to save money for your child’s education with tax benefits. Which account do you use?

You’re worried about future healthcare costs and want an account where contributions and growth are tax-free if used for medical expenses. What’s the account?

You put $5,000 into a savings account that pays 2% interest. How much do you earn after one year (ignoring taxes)?

You lock $1,000 into a CD for 3 years at 4% interest. What happens if you withdraw after 1 year?

You buy a U.S. Government Bond for $1,000 that matures in 10 years. What makes it safer than corporate bonds?

A company issues bonds, but if they go bankrupt you may not get your money back. What bond is this?

You buy a share of Apple stock. Apple’s profits rise, and the value of your share increases. What type of investment is this?

Instead of picking just one stock, you invest in a fund that spreads your money across 100 companies. What investment is this?

You decide to invest in crypto because you think the price will skyrocket. What kind of investment risk is this?

Your car insurance says you must pay the first $500 of damages before insurance covers the rest. What is that $500 called?

You pay $150 per month for car insurance even if you don’t get into an accident. What is this $150 called?

You cause an accident and the other driver sues you for injuries. Which part of your car insurance covers their medical bills?

Your car is stolen, and you file a claim. Which type of coverage pays you back?

You get into a crash and your own medical bills need to be covered (regardless of fault). What coverage helps with this?

You’re 22, healthy, and your employer offers health insurance. You choose a plan with low monthly premiums but high deductibles. What type of plan is this?

Which health account is only available if you have a high-deductible plan but lets you save money tax-free for medical expenses?

You want an account for medical expenses that your employer gives you each year but you lose it if you don’t spend it. Which is it?

A life insurance policy pays only if you die during a certain period (e.g., 20 years). What is it called?

A life insurance policy covers you for your whole life and builds cash value. What is it called?

You rent an apartment, and a fire damages your furniture. Which insurance protects your belongings?

A tree falls on your house during a storm. Which insurance covers repairs?

Your homeowners insurance won’t cover damage from a flood. What special policy do you need?

The most you’ll personally pay in a year before insurance covers 100% of costs.

Your state requires you to have minimum liability insurance for your car. Why?

What is the Discount Rate?

If the Fed lowers the discount rate, what effect does it usually have on borrowing and the economy?

What is the Reserve Requirement?

If the Fed raises the reserve requirement, how does that affect the money supply?

What is Interest on Reserves?

During high inflation, should the Fed raise or lower interest on reserves?

The economy is in a recession with high unemployment. Which monetary policy would the Fed most likely use?

What are Open Market Operations (OMO)?

If the Fed buys bonds in the open market, what happens to the money supply?

If the Fed sells bonds, what happens?

What is the Federal Funds Rate?

If unemployment is low but inflation is rising quickly, what type of monetary policy should the Fed use?

What are some limitations of monetary policy (4 answers)

The Fed lowers rates to fight a recession, but unemployment remains high for a long time. Which limitation of monetary policy does this show?

If the Fed misreads the economy and thinks growth will be faster than it actually is, what limitation is this?

How many members are on the Board of Governors and how long is their term?

Who appoints the Chair of the Federal Reserve, and how long is their term?

How many District Banks are there in the Federal Reserve System, and what do they do?

A business in Atlanta needs to process a government check. Which part of the Federal Reserve system would handle this?

What does the FOMC (Federal Open Market Committee) do?

If the Fed decides to sell government bonds to reduce the money supply, which group within the Fed is making that decision?

The form employees fill out when starting a job that tells employers how much tax to withhold from their paycheck.

A tax form for income earned outside of regular employment (like freelance, contract, or side gigs).

The main IRS form individuals use to file their annual income tax return.

You start a new job and must tell your employer how much to withhold in federal taxes. Which form do you fill out?

Total earnings before taxes and deductions.

Take-home pay after taxes and deductions.

You earn $3,000 a month. Taxes and deductions total $600. What is your gross pay and what is your net pay?

A payment made by a corporation to its shareholders, usually from profits.

A way of expressing total return on a $1,000 investment (profit or loss relative to $1,000).

A legal document that states how a person’s assets will be distributed after death.

A legal arrangement where one party holds and manages assets on behalf of another, often to avoid probate or reduce estate taxes.

A person or entity legally entitled to receive assets, funds, or benefits from an estate, trust, or insurance policy.

A legal document that authorizes someone to act on your behalf in financial or legal matters if you’re unable to.

A document that outlines a person’s medical treatment preferences and designates someone to make healthcare decisions if they can’t.

The person named in a will to carry out the instructions (distribute assets, pay debts, handle legal matters).

The total value of all final goods and services produced within a country in one year.

People who are employed or actively seeking work (not retired, not under 16, not institutionalized).

In an economy:

• Employed = 90 million

• Unemployed = 10 million

• Total population = 150 million

Find: Labor Force

• In an economy:

• Employed = 90 million

• Unemployed = 10 million

• Total population = 150 million

Find: Unemployment Rate

In an economy:

• Employed = 90 million

• Unemployed = 10 million

• Total population = 150 million

Find: Labor Force Participation Rate

A person loses their job when the economy goes into recession. What type of unemployment is this?

A college graduate is looking for their first job. What type of unemployment is this?

A worker’s job is replaced by a machine. What type of unemployment is this?

A measure of the average change in prices paid by consumers for a “market basket” of goods and services.

Base year basket = $100. Current year basket = $120.
Find CPI.

CPI last year = 200. CPI this year = 220.
What is the inflation rate?

A worker’s salary = $50,000. Inflation = 5%. If their salary doesn’t change, what happens to real income?

Nominal GDP = $1,000B. GDP Deflator = 125.
What is Real GDP?

Country A has higher GDP than Country B, but lower GDP per capita. What does this mean?

What is the Natural Rate of Unemployment?

A ski instructor is unemployed in the summer but works every winter. What type of unemployment is this?

Population = 250M
Labor Force = 160M
Employed = 150M

Find:
a) Unemployed
b) Unemployment Rate
c) Labor Force Participation Rate

Nominal GDP = $5,000B, GDP Deflator = 125.
Find Real GDP.

Households spend $500B on groceries and clothing.
Businesses spend $200B on new factories.
Government spends $300B on defense.
Exports = $100B, Imports = $150B.
What is GDP?

Government spends $400B on infrastructure.
Households spend $700B on services.
Businesses buy $250B in equipment.
Exports = $80B, Imports = $50B.
What is GDP?

Base year basket costs $200.
Current year basket costs $250.
Find CPI.

CPI last year = 150.
CPI this year = 165.
Find inflation rate.

The difference between the value of a nation’s exports and imports.

If a country exports $600B and imports $800B, does it have a trade surplus or deficit?

If exports = $900B and imports = $700B, what’s the BOT?

When a country exports more than it imports.

When a country imports more than it exports.

The currency’s value increases compared to another.

The currency’s value decreases compared to another.

If $1 = 1 Euro last year, and now $1 = 1.2 Euros, what happened to the U.S. dollar?

If $1 = 110 Yen last year, and now $1 = 100 Yen, what happened to the U.S. dollar?

If the U.S. dollar appreciates, what happens to U.S. exports?

The U.S. dollar weakens against foreign currencies. How would this affect tourism in the U.S.?

If the dollar strengthens, what happens to Americans buying European goods?

Government use of spending and taxation to influence the economy.

The government increases spending or cuts taxes to boost demand, create jobs, and fight recession. (expansionary or contractionary?)

The Government reduces spending or raises taxes to slow the economy and reduce inflation.

(expansionary or contractionary?)

The economy is in a recession with high unemployment. What fiscal policy might the government use?

Inflation is rising quickly. What fiscal policy might the government use?

When government spending is greater than tax revenue.

When government revenue is greater than government spending.

The government collects $4T in taxes but spends $5T. Is this a surplus or deficit?

The total demand for all goods and services in an economy at different price levels.

The total output of goods and services producers are willing and able to supply at different price levels.

If consumer spending increases because of tax cuts, what happens to Aggregate Demand?

If wages and resource costs rise sharply, what happens to Aggregate Supply?

Which curve (AD or AS) is most directly affected if the government raises taxes significantly?

A new technology makes production more efficient. Which curve shifts, and in what direction?

The Fed buys bonds on the open market.
👉 What happens to Aggregate Demand?

Congress cuts personal income taxes during a recession.
👉 Which curve shifts?

The Fed raises the reserve requirement.
👉 What happens to AD and unemployment?

Oil prices spike worldwide, raising production costs.
👉 Which curve shifts?

The government increases infrastructure spending to create jobs.
👉 Which curve shifts, and what happens to unemployment?

The economy is at full employment, but the government increases military spending.
👉 What’s the likely result?

A natural disaster reduces available resources.
👉 Which curve shifts, and what happens to prices?

What are the four phases of the business cycle?

Unemployment is low, GDP is rising, and inflationary pressures are building. Which stage of the business cycle is this?

Businesses are cutting back production, unemployment is rising, and GDP is falling. Which stage is this?

GDP has been shrinking for six months straight. What stage is the economy officially in?

GDP begins to grow again, unemployment falls, and consumer confidence rises. Which stage is this?

Name two things GDP does not measure.

A parent stays home to care for their kids instead of paying for daycare. Does this activity show up in GDP?

Pollution from a factory increases even though GDP grows. Why might GDP be misleading here?

What is two major limitation of Fiscal Policy?

Congress debates stimulus spending for six months while unemployment rises. What limitation is this?

What is one limitation of Monetary Policy?

The Fed lowers interest rates, but businesses are too nervous to borrow and invest. What limitation is this?

A federal health insurance program for people 65+ or with certain disabilities.

A joint federal–state program providing health coverage for low-income individuals and families.

What was the purpose of the Affordable Care Act (Obamacare)?