2011 & 1046 Flashcards
What’s the Market clearing price?
Where the quantity of a product that buyers want is equal to the quantity that sellers are willing to sell at a certain price
What’s a Price ceiling?
Maximum legal price that a business can charge for a product
What’s a Buyers market?
Best time for consumers to buy, which occurs when there is a large supply, small demand, and low prices
What are Visitor exports?
The money spent by foreign travelers in another country
What’s a Global Positioning System?
Determining how to get to and from a location
What are Sustainable resources?
Resource that’s used up at the same speed that it’s renewed
What’s a Speculative risk?
Brings the possibility of gain, loss, or no change
What’s a Pure risk?
Involves possibility of loss or no loss
How do lenders make money?
Lenders make money from borrowing by charging interest. When the interest rates increase lenders own more money
How do borrowers benefit?
Borrows benefit when interest rates decrease because it’s cheaper for them to borrow
What are safety risks?
Preventable risks that involve the safety of customers
What’s an indication that the economy is growing and that consumers are spending?
Low inflation, low interest rates, and increased business expansion
What are tax deductions?
Deductions that are subtracted from gross income
What are mutual funds?
Mutual funds are a collection of shareholders money that is invested by professional in an assortment of different securities such as stocks and bonds
What are corporate bonds used for?
When corporations sell corporate bonds to investors as a way to raise cash for the business
