Economics The Personal Life Cycle

Zara Kanani
Flashcards by Zara Kanani, updated more than 1 year ago
Zara Kanani
Created by Zara Kanani over 6 years ago
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Flashcards on Economics The Personal Life Cycle, created by Zara Kanani on 10/27/2014.

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Question Answer
How many stages of the personal life cycle are there and what are the names of them? There are 5. *Childhood, *Adolescence *Young Adult *Middle Adult *Late Adult
What is the personal life cycle? It is when peoples needs which start to differ as they get older, income changes and so do priorities. Needs also change.
Definition income? *The total money received from a person's wages interest and dividends.
Definition borrowing? *Getting money from a lender that must be repaid in the future.
Definition savings? *Putting money aside for later use.
Definition of needs and wants? *Needs are essential to us. *Wants are things we can survive without.
Definition debt? *The amount owed pending borrowing.
Name 5 needs? *Food/water *Shelter *Clothes *A good education *Money
Name 5 wants? *Phone, *Car, *Internet *TV *Laptop and Other material items.
What are opportunity costs? When we make a choice to give something up to get something else, so instead of buying a car you could have been able to afford a new phone.
Define demand? *Is the quantity of a good or service that a consumer will purchase at a particular price.
What is the basic economic problem? *This is when resources are limited but needs and wants are infinite.
What happens when the demand for a product increases? *The prices of the product increase, an example of this would be the Iphone.
What are the benefits of companies competing? *They have to start lowering the prices for an item. * They start selling better quality products. *Bring in a greater variety of food.
What is the law of demand? The greater the price of a product the lower the quantity demanded. *Here is the demand curve
Name one thing which effects demand? *The level of income.
Name some methods of borrowing? *Credit Card *Personal loan *Mortgage *Hire purchase *OVerdraft
Name some methods of saving? *High street banks *Investments *National Savings
Savings Account? *Reward= low-median *Risk= low *Short-long term account *Easy to withdraw money
ISA? *Reward= low-medium *Risk= low *Medium-long term account *Easy to withdraw money
National savings and Investment account? *Reward= low *Risk= very low *Medium long term account *You need a written notice to make a withdrawal.
Unit Trust? *Reward= medium/high *Risk= medium/high *Long term account *Accessing the money in this account can take time.
What type of loan is a mortgage? *A secured loan
What type of loan is a credit or store card? *This is an unsecured loan with a high interest rate and flexible payments.
What type of loan is a personal loan? *This is an unsecured loan with a medium interest rate with no flexible payments.
What is a hire purchase? *This is a secure loan with a medium interest rate, but no flexibility with payments.
What is an overdraft? *It is an unsecured loan with a high interest rate, with great flexibility.
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