Chapter 1 - 6 Review

2. what we owe or our debt
4. category of economics that deals with broad issues that imapct the economy as a whole
7. expenses that remain the same from period to period, like a car payment
8. category of economics that focuses more on individual choices or decision by smaller units, like a firm
9. certificates that represent fractional ownership in a firm
10. professionally managed investments that allow investors to pool their money in order to invest in a larger varieties of financial assets like stocks and bonds
12. something you acquire with the ultimate goal of making money
16. the total dollar amount of all goods and services in the nation
17. a period in which the economy is shrinking
19. rent on money you borrow
22. expenses that may change from period to period like an electric bill
24. a severe recession
25. process of forecasting future expenses and income
26. certificates like an IOU that promises to repay a certain amount of money in the future

1. formal measure of inflation that tells whether things overall are more expensive or less expensive than in the past
2. things you own that can be converted to cash rapidly
3. legal process in which a court takes over some of the finances a person who is unable to pay their bills
5. money paid out or spent
6. money earned through wages, allowance, or other source
11. the potential for loss
13. anything on which we spend money
14. homes, rental properties, farms, or other land
15. the worth of something if you sold it today
17. a snapshot of your qualifications that includes background information such as education and previous work history
18. an increase in the price of goods and services
20. anything you own such as cars, homes, furniture
21. the mathematical difference between assets and liability
23. amount of a specific asset that we own minus any liabilities