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Command Economy
Total government control (ie: North Korea)
Traditional Economy
Based on customs and what has been done in the past (ie: Uncontacted Tribes in the Amazon)
Market Economy
Individual buyers and sellers have control (ie: Japan)
Mixed Economy
Individuals carry on their economic affairs freely, but the government does also have a bit of control (ie: US)
Factors that affect demand
Change in income, weather, complimentary good price changes, substitute good price changes
Factors that affect supply
Cost of inputs, number of suppliers change, weather
Which way do supply and demand go on a graph?
Supply goes up, demand goes down
What direction is an increase and decrease on a supply & demand graph?
Increase shifts right, decrease shifts left
What is GDP?
Gross Domestic Product, all that is produced in a country in one year
Why does the FED raise interest rates?
Lower demand and raise price stability
What tools does the Fiscal Policy have?
Government spending and taxes
What are the benefits of worker unions?
Better job safety, better paid leave, easier to protest things
What is done to protect intellectual property and why?
Copyrights, trademarks, and patents, to increase innovation
Why are monopolies illegal?
They decrease competition, are unfair, and usually harm consumers
What agency is responsible for regulating unfair business practices and enforcing Antitrust Laws?
The Federal Trade Commission (FTC)
How does the government raise revenue and what is the primary source of it?
Taxes, Federal Income Tax
Globalizaiton
How trade and technology have made the world more connected
Economic Interdependence
When two or more countries rely on each other to trade for things that they need
How has globalization affected North Carolina?
Made it harder for the textile industry because they now have to compete with foreign manufacturers
Gross Income
Larger amount of money that you are paid before deductions
Net Income
"Take home pay", the remaining amount that you get to keep after deductions are taken off of your gross income
Examples of deductions from our paychecks
Federal/State Income Tax, FICA (Social Security and Medicare), health insurance contribution, retirement/pension contriubition
W-4 Form
Tells your employer how much to withhold for taxation & send to the IRS, filled out when you're first hired
W-2 Form
Displays the amount you have paid out over the year for taxes or FICA, has to be sent out by employers by January 31st
When is the deadline for individual tax filing?
April 15th
Why is diversification important when investing?
To lower/spread out risks
Good or Bad Choice: You should freeze your credit card immediately if it is lost or stolen
Good
Good or Bad Choice: You should switch the balance from one credit card to another
Good
Good or Bad Choice: You should send money to a deposed prince who sent you an email begging for help
Bad
Good or Bad Choice: You should decide to take a personal pause & not pay a bill for one month
Bad
Good or Bad Choice: You should use a credit card to pay for a semester of college
Bad
Good or Bad Choice: You should pay above the minimum balance
Good
Good or Bad Choice: You should shop around to find a low insurance premium & deductible
Good
True or False: Only time can repair your credit score
False
True or False: The insurance company will not pay anything until you have paid the deductible
True
True or False: The income tax is the best example of a progressive type of tax
True
True or False: Your credit score/report is not at all important
False
True or False: Credit card companies are not allowed to charge penalty rates and raise interest rates due to late payments
False
Identify the parts of Auto Insurance coverage
Liability, Collision, Comprehensive, and Personal Injury Protection (PIP)
What are four different situations involving job transitions?
Probationary period, action plan, being fired, or being laid-off
Note 
Flashcard (90)