Finance Basics: Income and Credit Cards

<p>Everyone starts with a clean financial record for credit history. (D)</p> Signup and view all the answers

<p>A hybrid between renting and owning, with an initial payment and monthly fees. (C)</p> Signup and view all the answers

<p>The color of the interior paint in the home. (A)</p> Signup and view all the answers

<p>It is returned if rent is paid, and the property is returned clean and undamaged. (D)</p> Signup and view all the answers

<p>The potential for property value to increase. (B)</p> Signup and view all the answers

<p>Minimizing waste and maximizing resource reuse. (B)</p> Signup and view all the answers

<p>Keep it as personal income or reinvest it into the company. (A)</p> Signup and view all the answers

<p>Ownership is divided into shares, and shareholders' liability is limited to their investment. (B)</p> Signup and view all the answers

<p>The freedom for entrepreneurs to start businesses, with some industries requiring specific permits. (A)</p> Signup and view all the answers

<p>The government earns more revenue than it spends. (A)</p> Signup and view all the answers

<p>Increased environmental degradation due to production and trade. (C)</p> Signup and view all the answers

<p>A private trader is run by one person, while a general partnership involves two or more owners. (A)</p> Signup and view all the answers

<p>To detail the company’s operations based on the business idea. (D)</p> Signup and view all the answers

<p>The ratio of work results (output) compared to the input used to achieve them. (B)</p> Signup and view all the answers

<p>They provide capital but are not involved in daily operations. (B)</p> Signup and view all the answers

<p>Managing monetary policy for the Eurozone, using interest rates to stabilize growth and inflation. (A)</p> Signup and view all the answers

<p>Määräaikainen contracts have a set end date and require justification, while Toistaiseksi contracts are permanent. (D)</p> Signup and view all the answers

<p>Demand-pull inflation; raise interest rates (C)</p> Signup and view all the answers

<p>Inflation (D)</p> Signup and view all the answers

<p>Examining the cost of a specific basket of goods to compare relative purchasing power of currencies. (B)</p> Signup and view all the answers

<p>Taxes (B)</p> Signup and view all the answers

<p>Expansion (C)</p> Signup and view all the answers

<p>Human development using health, education, and standard of living. (C)</p> Signup and view all the answers

<p>A rowhouse. (B)</p> Signup and view all the answers

<p>Value-added tax (VAT). (C)</p> Signup and view all the answers

<p>Genuine Progress Indicator (GPI). (D)</p> Signup and view all the answers

<p>Rapid increases in wages and prices (B)</p> Signup and view all the answers

<p>Significant number of dependents. (D)</p> Signup and view all the answers

<p>It details the time of employment, job duties, and potentially performance. (D)</p> Signup and view all the answers

<p>Increasing government spending and decreasing taxes. (D)</p> Signup and view all the answers

Money gained from possession of wealth (e.g., rental income, investments, sales)

Income after taxes and deductions are taken out

Income before taxes and deductions are taken out

Uses money directly from your bank account

Uses borrowed money (credit) that must be repaid. Charges interest on unpaid balances after the due date.

A mix of renting and owning. You pay 15% of the home’s price upfront and a monthly residence charge like rent.

Usually 1-3 times the rent. Refunded if rent is paid, the home is clean, and no damage is done.

Factors like neighborhood, proximity to services, schools, etc.

Economic model focused on minimizing waste and maximizing resource reuse through sharing, renting, and recycling rather than ownership.

The ratio of work results (output) compared to the factors of production (input) used to achieve them.

The freedom for entrepreneurs to start and operate businesses.

A practical document outlining a company's operations based on its business idea.

A business structure where ownership is divided into shares among multiple owners, with limited liability for shareholders.

A business structure run by one person, offering simplicity and full control but with personal liability for debts.

A business structure similar to a private trader but run by two or more owners, with shared responsibility for debts.

A business structure where one or more partners (liable partners) manage and are responsible for debts, while other partners (silent partners) invest capital but aren't involved in daily operations.

A business structure jointly owned and democratically managed by its members, providing services or products to members and offering bonuses based on usage.

The aim of a business is to generate profit, which can be kept as personal income or reinvested into the company for growth.

The market value of all final goods and services produced within a country during a specific time period.

A composite statistic that measures human development through three key indicators: Life Expectancy (health), Education (average and expected years of schooling), and Per Capita Income (standard of living).

A metric for economic growth that adjusts GDP by accounting for the environmental and social costs of economic activity.

A method of comparing the relative purchasing power of different countries’ currencies by examining the cost of a specific basket of goods.

A period of economic growth characterized by increasing consumption, GDP growth, high employment rates, and easy access to loans. Inflation may also rise during this phase.

The peak of the economic cycle characterized by rapid increases in wages and prices, an overheated economy, high levels of consumption, and large loans.

A period of economic decline marked by decreased production, layoffs, rising unemployment, reduced consumption, and difficulty repaying loans. This phase is characterized by a decrease in tax revenue, potentially leading to cuts in public services or increased government borrowing.

A severe and prolonged economic downturn characterized by widespread financial challenges and a bottoming out of the economy.

The rate of price increases over time, typically measured using the Consumer Price Index (CPI).

Occurs when demand for goods/services outstrips supply. This can be caused by factors like increased money supply, high employment leading to higher wages, and inflation expectations.

Happens when high production costs increase prices. This can be caused by factors like rising energy prices or shortages in raw materials.

The government's use of spending and taxation policies to influence the economy. This can involve increasing government spending on projects or providing financial assistance to stimulate economic activity, or cutting taxes to give consumers more disposable income.

The central bank's use of monetary policy tools, such as interest rates, to influence the economy. Lowering interest rates encourages borrowing and spending, while raising rates slows down economic activity.