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Must Know Vocab Econ
Economics Finial 2024
Question | Answer |
---|---|
Scarcity | the state of being scarce or in short supply |
Reward(return) | It refers to the potential for higher returns (profits) a person might make while investing |
Microeceonomics | based on models of consumers or firms (which economists call agents) that make decisions about what to buy, sell, or produce—with the assumption that those decisions result in perfect market clearing (demand equals supply) and other ideal conditions |
Personal Finance | Covers managing your money as well as saving and investing. It ecompasses budgeting, banking, insurance, mortgages, investments, and retirement, tax, and estate planning. |
Spending | Is an outflow of cash and typically where the bulk of income goes. It is whatever an individual uses their income to buy |
Economists | They do many things such as: conduct research, monitor economic trends, collect and analyze data, study, develop, or apply economic theory |
Self-Interest | The opportunity for a company to deploy its capital to turn a profit for itself and its owners |
Bottom-line | The end result of a trade off |
Trade-off | The understanding that you are going to lose something, in relation to time, money, or energy made when one good is exchanged for another |
Flexible Budget | Has a relational value to certain variables. The dollar amounts listed on a flexible budget change based on sales levels, production levels, or other external economic factors |
Protection | Refers to the methods people take to protect themselves from unexpected events, and as a means to preserve wealth. It includes life and health insurance and estate and retirement planning |
Values | Standards held by yourself which cause you to act the way you act. Basis for moral conduct codes and ethical reflection |
Competition | An activity involving two or more firms, in which each firm tries to get people to buy its own goods in reference to the other firms goods |
Investing | It involves purchasing assets (usually stocks and bonds) to earn a return on the money invested. It aims to increase an individual's wealth beyond the amount they invested.. It does come with risks |
Macroeconomics | the sum total of the decisions made by individuals in a society or nation |
Economic System | means by which governments and society's sectors distribute resources throughout a region or country. They regulate capital, labor, and trade |
Income | the starting point of personal finance. The entire amount of cash in flow that you receive and can allocate to expenses, savings, investments and protection |
Cost-Benefit Analysis | Is a practical technique that scrutinizes the advantages and drawbacks of various alternatives to enable better decision making |
Taxes | Mandatory contributions levied on individuals or corporations by a government entity |
Economics | the study of production, distribution and consumption of human society. The study of people as consumers making choices about which products and goods to buy |
Personal Finance Services | services offered to help plan and manage their finances |
Static Budget | Remains unchanged over the life of the budget. Regardless of changes that occur during the budgeting period, alla counts and figures originally calculated remain the same |
Saving | The income left over after spending |
Risk | the chance that an outcome will or investments actual gain will differ from an expected outcome/return. Possibility of losing some/all of original investment |
Land | can take on various forms - agriculture land, commercial real-estate, resources (natural) available |