Econ Unit 5 Notes

The greater the blank the greater the blank

• risk/return

• collective money

• checking account

• savings account

According to Smith, what's true about credit cards?

• they're the devil and companies prey on people from wanting them to max them out and make minimum payments so they make more money

• they're a joke and not worth owning

• they're a great tool to use for spending money

• they teach people how to be financially responsible

what is money?

• three things: medium exchange, unit account, store value

• a green rectangular piece of paper or coin

• a bar made of rare minerals

• all of the above

Athan cut Alexis's hair. Alexis bought Athan lunch in exchange for services

• barter system

• collective money

• illegal exchange

• cronyism

Why do barter systems work better in smaller traditional settings?

• more convenient

• as economy becomes more specialized, bartering becomes too time consuming and difficult to be practical

• not as biased

• more reasonable negotiation

What do we call anything of value that can be exchanged for goods/services?

• dollar bills

• medium exchange

• gold

• change

What happens if money loses store value?

• stores'll no longer accept payment

• means value money decreases with time

• economy doesn't take transaction

• illegal forms of payment will be searched for

How do savings bonds work?

• money is put to be reserved for later

• buy bonds receive interest when bonds mature

• money's put in the bank with the expectation it'll stay there until you're ready or have to use it

• bank tellers put your money in a special account reserved for emergencies only

Which of the following items have intrinsic (long lasting) value?

• phones, iPad, flat screen

• skin, bones, blood

• gold, silver, precious metals

• 3 dollar bill, peso, euro

What do we call a market in which shares corporations shared/traded?

• barter system

• standard economic system

• stock exchange/market

• checking accounts