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Finance (Sec.5) > Quiz One > Flashcards

Quiz One Flashcards

the 4 economic sectors Supply & demand Credit Score Simple Interest Compound interest Wants/ Needs Credit Cards (interest rate, minimum payment, how frequent interest is, etc)

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1
Q

Wants vs. Needs

Wants:

Define

A

What we desire to have

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2
Q

Wants vs. Needs

What we desire to have:

Term

A

Wants

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3
Q

Wants vs. Needs

Needs:

Define

A

What we need to function or survive

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4
Q

Wants vs. Needs

Buying the things we want or need:

Term

A

Consumption

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5
Q

Wants vs. Needs

What we need to function or survive:

Term

A

Needs

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6
Q

Wants vs. Needs

Consumption:

Define

A

Buying the things we want or need

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7
Q

Ex: Wants vs. Needs

Want ex’s:

A
  • A newer smartphone that’s faster and has a better camera
  • Nice and cool shoes
  • The fastest laptop with the best screen
  • The fastest and coolest car
  • A Gucci Brand Belt
  • Video Games
  • Jewelry
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8
Q

Ex: Wants vs. Needs

Needs ex’s:

A
  • A smartphone
  • A laptop
  • Winter clothing (jacket, boots, gloves, etc)
  • Shelter
  • Food
  • Money
  • Method of transport (bike, bus pass, car)
  • Medicine/medication
  • Dress clothes
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9
Q

Wants

consumer society

A

Buying things we want just because we can have them

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10
Q

Wants

What are they?

Type of thing… not a definition

A

Feel good things

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11
Q

Wants

What limits the purchase of “wants”?

A

Limited based on the funds (money) we have

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12
Q

Opportunity Cost

Define

A

The amount of money we spend reduces the choices we can make.

Extra money spent, reduces spending in other aspects (opportunities)

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13
Q

2 Types of Economies

A
  1. Services
  2. Goods and manufacturing
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14
Q

Resources ex:

List

A
  • Agriculture,
  • Gold,
  • Diamonds,
  • Logging,
  • Oil,
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15
Q

Services:

List

A
  • Teaching,
  • Health care workers,
  • Public transit,
  • Mechanics,
  • Plumbers,
  • Carpenters,
  • Banking, dentists,
  • Contractors,
  • Restaurant workers
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16
Q

Fun Fact about Services in Quebec!

A

In 2015 80% of jobs in Quebec were held by service like jobs, therefore most of our economy is a service economy!

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17
Q

Sectors (parts) of the Economy

A
  • Primary Sector: Using and harnessing natural resources, creating energy
  • Secondary Sector: Making manufactured goods/products and distributes them
  • Tertiary Sector: Service sector
  • Quaternary Sector: The knowledge sector
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18
Q

Inflation

Define

A

When the prices of goods and services increase

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19
Q

Hyperinflation

Define

A

where the price of goods skyrockets to the point they are barely affordable or not at all

Great Depression!!

20
Q

Supply & Demand

If there is a large demand for a product or good

A

then the value (price) can increase

21
Q

Supply & Demand

If there is low demand for the product

A

producers will decrease the price to what is more ‘fair’

22
Q

Supply & Demand

Equilibrium price

Define:

A

the sweet spot between demand and supply in terms of a price for a good

23
Q

Supply & Demand

Surplus

Define:

A

more of a product than needed

24
Q

Cost!

What goes into manufacturing?

List!

A
  • Resources (materials)
  • Design (how to make it look) & engineering (how to make it work)
  • Manufacturing cost
  • Marketing (ads)
  • Shipping/Transport
25
Q

Interest

Define:

A

the amount put on top for a loan or savings accounts

26
Q

2 names for initial amount!

A
  • Principal Amount
  • Base Amount
27
Q

Interest can be charged:

A

daily, weekly, monthly or yearly

28
Q

statement balance

define and explain

A

The amount you need to pay

29
Q

Outstanding balance

define and explain

A

amount added on top of what you already owe is the

Ex: My credit card statement is $500 for the month. Before I pay it off I buy $200 of groceries. Meaning before I pay off the monthly statement, my outstanding balance is $700.

30
Q

Minimum payment

Is it constant? How often is it paid?

A

Every credit card has a minimum payment that has to be paid for every monthly statement (monthly bill). The minimum payment changes per bill

31
Q

al

Compound interest

Define:

A

separate kind of interest that is calculated based on the principal amount and the interest amount

Can cause people to go into debt (almost inescapable…)

32
Q

Credit Score

Higher score?

What does it mean?

A

Good with managing debts

33
Q

Credit Score

Higher score?

What does it mean?

A

Good with managing debts

34
Q

Two Events Caused by Hyperinflation!

A
  • Great Depression in Germany, contributing to the rise of Hitler
  • The Russian Revolution
35
Q

During covid what to things increased their prices:

A
  • Cars
  • Toilet Paper
36
Q

Countries with the most debt

A
  • America
  • Canda
  • Japan
  • Greece / Spain
37
Q

GDP

A

How much money a country has

38
Q

GDP to debt

A

how much money the country has compared to how much it owes

39
Q

Debt to GDP % with examples

A
  • Japan 256% of GDP
  • Sudan 209% of GDP
  • Greece 206% of GDP
  • Italy 154% of GDP
40
Q

Deficit

A

when the govt’ has less money than it earns
If you have less money than your debts as a whole, you are personally at a deficit

Make less money than you owe.

41
Q

Default

A

Completely unable yo pay their bills.
Worst case: country - can result in economic collapse.

42
Q

What can happen if you default a payment?

A

Your things can be reposessed.

43
Q

Four main goals of an Advertisement

A
  • To inform
  • Develop awareness
  • Modify behavior
  • Create needs
44
Q

Inform

A

let people know about a product, service, or a political candidate’s existence.

45
Q

Develop awareness:

A

Tapping into people’s emotions for a certain issue or social concerns.

46
Q

Modifying behavior

A

changing behavior could influencing the opinion of a product/service. It could also change our actions

Nike’s “Just do it!” slogan could make you exercise more

47
Q

Creating needs

A

gives people a sense they need to have a specific product

MANIPULATES YOU TO SPEND MORE MONEY

Finance (Sec.5) (2 decks)

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