- •1.What kind of science is economics?
- •2. What does economics explain?
- •4. What economic issues do we meet with every day of our lives?
- •1.What is economics?
- •11. What do economists use to explain or describe the “world that is”?
- •17. Why does positive economics avoid value judgements?
- •18. Why do economists use positive economics?
- •22. Why can some economic issues never be decided by using facts?
- •1/ What are economic resources?
- •21. What factors of production are active (flexible) and passive (fixed)? Why?
- •1.What are the three basic economic questions that every society must answer?
- •2.What makes each society look for the answers to the basic economic questions?
- •3/ How does each society make its decisions to solve the problem of scarcity?
- •6/What does the Who question mean?
- •7/What is an economic system?
- •9/What is a traditional economy?
- •11/ Why are there few social changes within a traditional economy?
- •12/What is a command economy?
- •13/ Who makes decisions on the fundamental economic questions in a society with a command economy?
- •15/Why do the individuals have very little say as to how the basic economic questions are answered?
- •16/What is a market economy?
- •19What is a free enterprise system based on?
- •20/Who owns the means of production in a society with a market economy?
- •1. Why is the theory of supply and demand considered one of the most fundamental concepts of economics?
- •2. What is demand?
- •3. What factors alter consumer demand?
- •4. What goods are considered to be related?
- •8. What does the law of diminishing marginal utility explain?
- •9. What does the law of demand state?
- •7.What is a supply schedule?
- •8.What is a supply curve?
- •9.What does supply curve enable producers to anticipate?
- •10.What does each point along the curve represent?
- •21.How does the cost of production affect the behavior of producers?
- •24.How do future expectations affect the quantity supplied?
- •25.Why are profit opportunities considered as factors that influence the quantity supplied?
- •29.Why is elasticity important in understanding supply and demand theories?
- •31.When supply is elastic?
- •In a Market Economy
- •1.What is a price?
- •3.What is a price system?
- •12. What does the characteristic of perfect competition “no barriers to enter or exit the market” mean? .
- •7. What does legal tender mean?
- •25. What does the purchasing power of money mean?
- •8.What drawbacks do they have?
- •9.What is difference between credit and debit cards?
- •11.What is a charge account?
- •14.What is a consumer credit?
- •15.What does consumer credit provide?
- •17.What is a consumer loan?
- •21. Why is savings considered one of the ways of good money management?
- •23. What factors should be considered before staring any kind of savings program? 24. What does safety mean?
- •25. What is liquidity? •
- •29. What does the yield depend on?
- •30. What accounts are offered by depository institutions?
- •32. Why do some people put their money in savings accounts? •
- •35. Why do financial institutions charge the highest interest rates on cDs?
- •38. What steps should be taken to reach financial goals?
- •6. What is a sole proprietor responsible for?
- •15. What is a corporation?
- •16. What is the essential feature of a corporation?
- •17. Who owns a corporation?
- •23. Why does a corporation have a continuous existence?
- •27. What does double taxation refer to?
- •28. What are dividends?
- •29. What is the role of the board of directors?
21. Why is savings considered one of the ways of good money management?
Another way of good money management is savings. Saving is one of the most important things you do with your extra cash. What makes saving money just a pleasant experience is interest. You aren’t just saving your money, you are actually letting it grow. Your money is making more money.
22. Why is it important for people to make savings? Saving is one of the most important things you do with your extra cash. What makes saving money just a pleasant experience is interest.
23. What factors should be considered before staring any kind of savings program? 24. What does safety mean?
Before starting any savings program it pays to choose* the type of an account you will keep your money with a bank. In choosing a bank account, it is important to keep a close watch on such features as safety, liquidity, interest rate, compound interest, сredit fees, and limitations on withdrawals.
25. What is liquidity? •
Liquidity refers to how quickly your savings can be converted into cash
.26. What is a rate of interest?
Interest rate: the percentage of the principal paid by the borrower to the lender for the use of the lender's money. 27. What is a rate of return?
Rate of return: the amount of interest or dividends stated as a percentage of the principal of an investment.
28.What is a compound interest?
Compound interest: interest calculated on both the principal and its accumulated interest. • Compound interest is an interest which is payable not only on the original sum of money but also on sums of interest as they accumulate.
29. What does the yield depend on?
The yield, the actual amount of interest earned, goes up as interest is paid more frequently.
30. What accounts are offered by depository institutions?
The accounts offered by depository institutions generally fall within one of these types • Checking account or demand deposits: •Savings accounts •Time deposits •Certificates of Deposit (CDs) • Money market accounts •Money market funds accounts
31. What characteristics do checking accounts have? •Checking account or demand deposits are accounts the main function of which is to provide check-writing privileges therefore most lenders either pay no interest or pay a low interest rate on credit balances. Money placed in these accounts doesn’t generate interest.
32. Why do some people put their money in savings accounts? •
Savings accounts are accounts which pay somewhat higher interest but cannot be used directly as money (by, for example, writing a cheque). These accounts let you set aside a portion of your liquid assets that could be used to make purchases while earning a monetary return.
33. What are the benefits and drawbacks of time deposits? •
Time deposits are money deposits that cannot be withdrawn for a certain time period. The longer the term, the better the yield on the money. Money placed on a time deposit enables you to maximize the interest generated.
34. What do the certificates of deposit require from the depositors? •
Certificates of Deposit (CDs) are funds deposited with the bank for a specific period of time in return for a guaranteed, pre-determined interest rate. They are insured by government agencies and thus risk-free. Deposit Certificates have different maturities, from three months to five years, and converting them into cash before maturity will result in a penalty, so they are not quite as liquid as the other investments mentioned.