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Economics (Micro-Econ (Personal Financial Info (FICA taxes (Medicaid,…

- - - - Limited resources
    - - The thought process that you go through with every decision
    - - The more coffee you drink the less coffee you want
    - - The next best thing your giving up
    - - An attempt to encourage a response
    - - A negative/ unintended reaction to an incentive
    - - A way to graph the maximum that a business can produce
    - - Land
      - Labor
      - Capitol
  - - - Paycheck before deductions
    - - What you have to give to the federal government
      - Marginal tax brackets
        
        the first 100 dollars gets taxed 1%, second 100 2% and so on
    - - Paycheck after deductions
    - - What you have to give to the state goverment
    - - Medicaid
      - Medicare
      - Social Security
    - - Credit Score
        
        Used for taking out loans, getting good credit cards, etc.
    - - Mandatory
        
        FICA, etc
      - Voluntary
        
        Unions and such
    - - Predatory loans aimed at those with low credit scores
      - Very high interest rates
    - - Fixed rate
        
        Constant mortgage payment
      - Subprime
        
        Mortgage rate is always adjustable by the bank
  - - - How much of a product is wanted
    - - How much of a product is available
    - - More supply then demand
    - - More demand then supply
    - - Same supply as demand
    - - Normal
        
        When you have more money you buy more
      - Inferior
        
        When you have more money you buy less
      - Complimentary
        
        Goes with another good
      - Substitute
        
        Replaces another good
  - - - Nudging someone to make a choice
    - - Giving people freedom but pushing choices
- - - - GDP = C + I + G + (X – M)
      - the total value of goods produced and services provided in a country during one year.
      - Pros: Easy to understand
      - Cons: Does not show all the information
    - - Frictional
        
        Moving from one job to another
      - Structural
        
        Technological Change
        
        Industrial Reorganization
      - Cyclical
        
        Recession
        
        Overall demand doesn't support large amounts of employment
    - - Documents variation in the prices that consumers pay
      - Shows inflation
      - Pros: Very easy to measure, easy to understand
      - Cons: Would not work as the only measure of the health of the economy
    - - Secondary
        
        Manufacturing
      - Tertiary
        
        Purchase of finished goods
      - Primary
        
        Farming
        
        Mining
        
        Lumberjacks
      - Underground
        
        Undocumented economic activity
  - - - Expansionary
        
        Stimulate the economy by increasing monetary supply
      - Contractionary
        
        Fight inflation by decreasing money supply
    - - MPC
        
        Marginal Propensity to Consume
      - Fiscal Policy Multipliers
        
        Change in national income to the change in government spending that caused it
      - Debt vs. Deficit
        
        Money is owed
        
        A lack of money
    - - Contractionary
        
        Decrease spending when times are hard
      - Expansionary
        
        Increase spending when times are good
    - - Flat money
        
        Backed by the goverment
      - Gold Standard
        
        Backed by physical currency, such as gold
    - - Mortgage Backed Security's
        
        Supposed to be the safest stock but were loaded with bad mortgages
    - - Keynes
        
        Animal Spirit's
      - Hayek
        
        Fiscal and Monetary sugar high