Unit 1 Test Review

A series of vocabulary flashcards summarizing key concepts from the Unit 1 Test Review on economic principles.

Gross Domestic Product (GDP)

The total monetary value of all final goods and services produced within a country's borders in a specific period.

Inflation

The rate at which the general level of prices for goods and services rises, eroding purchasing power.

Gross Domestic Product (GDP)

The total monetary value of all final goods and services produced within a country's borders in a specific period.

Inflation

The rate at which the general level of prices for goods and services rises, eroding purchasing power.

Business Cycle

The fluctuating pattern of expansion and contraction in economic activity over time.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Unemployment

The situation when individuals who are capable of working are unable to find a job.

Economic Systems

The organized way that a country allocates resources and distributes goods and services; includes Mixed, Command, Traditional, and Market systems.

Analytical Economics

The branch of economics that focuses on explaining economic phenomena based on empirical data.

Normative Economics

The branch of economics that expresses value judgments about economic fairness or what the economy ought to be like.

Registered Education Savings Plans (RESPs)

Tax-advantaged savings plans in Canada to help save for a child's post-secondary education.

Registered Retirement Savings Plans (RRSPs)

Tax-deferred retirement savings plans in Canada designed to help individuals save for retirement.

Stocks

Equity securities that represent ownership in a corporation and constitute a claim on a portion of the company's assets and earnings.

Bonds

Debt securities that are essentially loans made by investors to borrowers; represents a promise to pay back the borrowed amount with interest.

Financial Planning

The process of setting financial goals and creating a roadmap to achieve them.

Calculating Investment Returns

Determining the gain or loss made on an investment over a specific time period, often expressed as a percentage of the investment's initial cost.

Compound Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods.

Simple Interest

Interest calculated only on the principal amount, or the original amount of money invested or borrowed.