Economics Flashcard

Front

What is saving?

Back

The act of setting aside a portion of one's income or resources for future use.

Answer explanation

Saving is defined as the act of setting aside a portion of one's income or resources for future use, distinguishing it from spending or investing.

Front

Which of the following is NOT a benefit of a good credit score?
It makes it easier to obtain credit.
It can lower interest rates on credit.
It can accelerate the time that credit has to be paid back.
It can unlock certain benefits like special credit cards.

Back

It can accelerate the time that credit has to be paid back.

Answer explanation

A good credit score helps in obtaining credit, lowering interest rates, and unlocking benefits, but it does not accelerate the repayment time of credit. Therefore, the statement about accelerating repayment is NOT a benefit.

Front

What is gross income?

Back

The total amount of income earned by an individual or business before any deductions or taxes are taken out.

Answer explanation

Gross income refers to the total income earned by an individual or business before any deductions or taxes. This definition aligns with the correct answer choice, distinguishing it from net income and taxable income.

Front

What is an economic system?

Back

The way in which a society organizes the production, distribution, and consumption of goods and services.

Answer explanation

An economic system refers to how a society organizes the production, distribution, and consumption of goods and services, making the correct choice the one that accurately defines this concept.

Front

Tracking income and ______ and reconciling financial records are crucial aspects of maintaining good financial health.

Back

Expenses, Profits, Hours worked, Taxes

Answer explanation

Tracking income and expenses is essential for financial health, as it allows individuals and businesses to understand their financial situation and make informed decisions.

Front

What is a production-possibilities curve?

Back

A graphical representation of the different combinations of two goods that a country, a firm, or an individual can produce given a fixed set of resources and technology.

Answer explanation

A production-possibilities curve illustrates the various combinations of two goods that can be produced with limited resources and technology, highlighting trade-offs and opportunity costs in production.

Front

What is the profit earned from the sale of an asset called?

Back

Capital Gain

Answer explanation

The profit earned from the sale of an asset is referred to as a Capital Gain. This term specifically denotes the increase in value realized when an asset is sold for more than its purchase price.

Front

Analyze how the concepts of scarcity, choice, and opportunity costs apply to decision making.

Back

The value of the next best alternative that we forgo when we make a choice.

Answer explanation

The correct choice highlights opportunity cost, which is the value of the next best alternative we forgo when making a decision. Scarcity forces us to make choices, and understanding opportunity costs helps evaluate those choices effectively.

Front

Develop financial goals for the short, medium, and long term that are specific, measurable, attainable, realistic, and time based.

Back

Ambitious

Answer explanation

The correct choice, 'Ambitious', reflects the need for financial goals to be challenging yet achievable. Setting ambitious goals encourages growth and motivation, aligning with the criteria of being specific, measurable, attainable, realistic, and time-based.

Front

Describe the process for completing grant and scholarship applications, including the Free Application for Federal Student Aid (FAFSA®) provided by the U.S. Department of Education or the Texas Application for State Financial Aid (TASFA).

Back

FAFSA

Answer explanation

The FAFSA is essential for applying for federal financial aid, including grants and scholarships. Completing it accurately is crucial for maximizing financial support for education.