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)
Wants vs. Needs
Wants:
Define
What we desire to have
Wants vs. Needs
What we desire to have:
Term
Wants
Wants vs. Needs
Needs:
Define
What we need to function or survive
Wants vs. Needs
Buying the things we want or need:
Term
Consumption
Wants vs. Needs
What we need to function or survive:
Term
Needs
Wants vs. Needs
Consumption:
Define
Buying the things we want or need
Ex: Wants vs. Needs
Want ex’s:
- 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
Ex: Wants vs. Needs
Needs ex’s:
- A smartphone
- A laptop
- Winter clothing (jacket, boots, gloves, etc)
- Shelter
- Food
- Money
- Method of transport (bike, bus pass, car)
- Medicine/medication
- Dress clothes
Wants
consumer society
Buying things we want just because we can have them
Wants
What are they?
Type of thing… not a definition
Feel good things
Wants
What limits the purchase of “wants”?
Limited based on the funds (money) we have
Opportunity Cost
Define
The amount of money we spend reduces the choices we can make.
Extra money spent, reduces spending in other aspects (opportunities)
2 Types of Economies
- Services
- Goods and manufacturing
Resources ex:
List
- Agriculture,
- Gold,
- Diamonds,
- Logging,
- Oil,
Services:
List
- Teaching,
- Health care workers,
- Public transit,
- Mechanics,
- Plumbers,
- Carpenters,
- Banking, dentists,
- Contractors,
- Restaurant workers
Fun Fact about Services in Quebec!
In 2015 80% of jobs in Quebec were held by service like jobs, therefore most of our economy is a service economy!
Sectors (parts) of the Economy
- 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
Inflation
Define
When the prices of goods and services increase
Hyperinflation
Define
where the price of goods skyrockets to the point they are barely affordable or not at all
Great Depression!!
Supply & Demand
If there is a large demand for a product or good
then the value (price) can increase
Supply & Demand
If there is low demand for the product
producers will decrease the price to what is more ‘fair’
Supply & Demand
Equilibrium price
Define:
the sweet spot between demand and supply in terms of a price for a good
Supply & Demand
Surplus
Define:
more of a product than needed
Cost!
What goes into manufacturing?
List!
- Resources (materials)
- Design (how to make it look) & engineering (how to make it work)
- Manufacturing cost
- Marketing (ads)
- Shipping/Transport
Interest
Define:
the amount put on top for a loan or savings accounts
2 names for initial amount!
- Principal Amount
- Base Amount
Interest can be charged:
daily, weekly, monthly or yearly
statement balance
define and explain
The amount you need to pay
Outstanding balance
define and explain
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.
Minimum payment
Is it constant? How often is it paid?
Every credit card has a minimum payment that has to be paid for every monthly statement (monthly bill). The minimum payment changes per bill
al
Compound interest
Define:
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…)
Credit Score
Higher score?
What does it mean?
Good with managing debts
Credit Score
Higher score?
What does it mean?
Good with managing debts
Two Events Caused by Hyperinflation!
- Great Depression in Germany, contributing to the rise of Hitler
- The Russian Revolution
During covid what to things increased their prices:
- Cars
- Toilet Paper
Countries with the most debt
- America
- Canda
- Japan
- Greece / Spain
GDP
How much money a country has
GDP to debt
how much money the country has compared to how much it owes
Debt to GDP % with examples
- Japan 256% of GDP
- Sudan 209% of GDP
- Greece 206% of GDP
- Italy 154% of GDP
Deficit
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.
Default
Completely unable yo pay their bills.
Worst case: country - can result in economic collapse.
What can happen if you default a payment?
Your things can be reposessed.
Four main goals of an Advertisement
- To inform
- Develop awareness
- Modify behavior
- Create needs
Inform
let people know about a product, service, or a political candidate’s existence.
Develop awareness:
Tapping into people’s emotions for a certain issue or social concerns.
Modifying behavior
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
Creating needs
gives people a sense they need to have a specific product
MANIPULATES YOU TO SPEND MORE MONEY
