Economics and Finance Flashcard for Students

Front

What is the term for the total value of all goods and services produced within a country in a year?

Back

Gross Domestic Product (GDP)

Front

Which of the following is a fixed cost for a business? Raw materials, Employee wages, Rent, Utilities

Back

Rent

Front

Calculate the simple interest earned on a principal of $500 at an interest rate of 5% per annum for 3 years.

Back

$75

Front

What is the primary purpose of a budget?

Back

To plan future income and expenses

Front

If the demand for a product increases, what is likely to happen to its price, assuming supply remains constant?

Back

The price will increase

Front

Which economic system is characterized by private ownership and free markets?

Back

Capitalism

Front

Back

Front

Which of the following is an example of a variable expense?
Mortgage payment, Car insurance, Groceries, Property tax

Back

Groceries

Front

If a product's price elasticity of demand is greater than 1, what does this indicate about the product?

Back

Demand is elastic

Front

What is the opportunity cost of choosing to spend time studying instead of working a part-time job?

Back

The money earned from the job