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Economics > Chapter 13 > Flashcards

Chapter 13 Flashcards

1
Q

What is our economy in a constant state of?

A

flux

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2
Q

Business cycles

A

is regular ups and down in the economic growth marked by periods of expansion (economy is in a period of growth) and contraction (the economy is in a period of decline)

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3
Q

Business fluctuation

A

alternating periods of expansion and contraction.

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4
Q

Phases of Business cycle

A

recession

expansion

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5
Q

Recession

A

a decline in the GDP lasting at least two quarters in a row or more. The recession begins when the economy reaches a peak (the point where the real GDP stops going up) and ends when the economy reaches a trough (the point where the real GDP stops going down)

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6
Q

Expansion

A

a period of uninterrupted growth of real GDP

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7
Q

what happens if recession becomes severe/

A

it turns into a depression

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8
Q

Causes of the business cycle

A
  1. External shock- such as wars, internal conflicts
  2. Changes in investment spending- are companies growing and investing or not
  3. Changes in monetary policy- the policies of the federal reserve (increase or decrease in interest rates)
  4. Fiscal policy shocks- federal government spending
  5. Speculation and bubbles- expectations about the future
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9
Q

how did the great depression begin?

A

stock market crash “black tuesday”

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10
Q

How much did the GDP drop in the great depression?

A

50%

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11
Q

What was the darkest period economically in history?

A

great depression

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12
Q

What are the causes of the great depression?

A
  1. unequal distribution of wealth
  2. credit
  3. international trade wars
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13
Q

What came out of the depression?

A

economic reforms

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14
Q

What are some economic reforms ?

A

social security

minimum wage

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15
Q

what did unemployment programs give?

A

relief to people out of work

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16
Q

Name a unemployment program

A

federal deposit insurance corporation

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17
Q

What did the FDIC do?

A

created banking insurance for peoples deposits

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18
Q

how much did the GDP decline in great recession?

A

5%

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19
Q

what was the major cause of the great recession?

A

home loans grants to borrowers with poor credit histories and no down payments considered high risk loans.

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20
Q

what are the causes of instability in economy?

A

inflation

deflation

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21
Q

inflation

A

a sustained rise in general level of prices and services

22
Q

deflation

A

a sustained decline in general level of prices and services

23
Q

what does the flow of money in the family represent?

A

the value system under which that family operates

24
Q

what do men say about emergency fund savings?

A

its boring and not sophisticated enough

25
Q

what do women say about emergency fund savings?

A

its the most important key to our financial plan

26
Q

how do men get good deals?

A

negociating

27
Q

How do women get good deals?

A

hunting

28
Q

how do men feel about financial problems?

A

lose self esteem because money usually represents a scorecard to them

29
Q

how do women feel about financial problems?

A

they face fear or terror, because money means security.

30
Q

what is the number one cause of divorce in america?

A

money fights

31
Q

what happens when you agree on the money system?

A

you will reach a unity in marriage that you can experience no other way

32
Q

who does the financial planning?

A

both

33
Q

who can prepare the budget?

A

the partner with the natural gift but both do decisions

34
Q

why does the nerd like doing the budget?

A

because it gives them control, and they fell like they are taking care of loved ones.

35
Q

how can the free spirit appear to the nerd when doing finances?

A

can appear irresponsible

36
Q

how does the free spirit feel when doing finances?

A

controlled and not cared for

37
Q

what can lead to poor money management?

A

time, poverty, and fatigue

38
Q

what can impulse buying be brought on by?

A

stress or even I owe it to myself

39
Q

What does a written plan give a single person?

A

empowerment, self accountability and control

40
Q

what must accountability frinds be?

A

loving enough to be brutally honest with you

41
Q

whos responsibility is it to teach kids to handle money?

A

parents

42
Q

What should parents do instead of allowances?

A

commissions

43
Q

how should parents teach their kids?

A

by example

44
Q

What should parents teach their children about money?

A

how to live debt-free, how insurance works, IRA

45
Q

what money-saving technique should you use with 5-12-year-olds?

A

giving, spending, and saving

46
Q

What money-saving technique should you use with 13-15-year-olds?

A

open a checking account for the child and teach him how to run it by monthly reviews

47
Q

nerd

A

the one who likes to deal with numbers and the budget

48
Q

commission

A

getting paid based on the work you complete

49
Q

free spirit

A

the one that goes with the flow

50
Q

accountability

A

taking responsibility and assisting with wise decisions

51
Q

Value system

A

what is important to you

Economics (7 decks)

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