Terms in this set (62)
market economy based on capitalism a system in which private citizens own the factor of production
struggle among sellers to attract consumers by offering the best prices.
american economy .
person who organizes and operates a business or businesses, taking on greater
Person who purchases goods and services for personal use.
an economic system combining private and public enterprise.
People have the freedom to choose their occupation and their employer.People can choose to have their own business or to work for someone else
act of buyers and sellers freely and willingly engaging in market transactions.
People have the right and privilege to control their possessions as they wish
Self-Interest / Profit Motive
wealth in a business venture.
In the US, individuals are free to look after their own self-interest.People are free to risk their
make the best use of scarce resources
sense of justice for all; ensures that all people share in the benefits of free enterprise
maintain stable employment and stable prices
individuals help protect themselves against the unexpected by buying insurance
increase the amount of goods and services that each worker in the economy can produce
Government enforces laws such as those against false and misleading advertising, impure food and drugs, environmental hazards, and unsafe automobiles.
It also enforces laws against abuses of individual freedom.
Provider and Consumer
Government provides goods and services for citizens.
The government is charged with preserving competition in the market place.
Promoter of National Goals
Government reflects the will of the majority of its people.
Government programs such as Social Security, child labor laws, and minimum wage reveal how Americans have modified their free enterprise economy.
total amount you earn before any deductions are subtracted
amount of paycheck or money you can actually spend
amounts subtracted from your gross pay
Federal Insurance Contributions Act (FICA) tax /ˈfaɪkə/ is a United States federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, the disabled, and children of deceased workers.
government sponsor health insurance
a compulsory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.
any government system that provides monetary assistance to people with an inadequate or no income.
federal income tax
Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts and other legal entities.
state income tax
Tax levied on income at the state level. State income taxes have their own set of deductions and credits that may be awarded for certain activities, such as contributing to a state-sponsored 529 plan. Taxpayers who itemized deductions on their federal returns may deduct state taxes paid on Schedule A.
A type of insurance coverage that pays for medical and surgical expenses that are incurred by the insured. Health insurance can either reimburse the insured for expenses incurred from illness or injury or pay the care provider directly.
the action or fact of leaving one's job and ceasing to work.
tax imposed or certain goods or services
rate stays the same regardless of income
internal revenue services
willful failure to pay taxes
amount you may subtract from your income for each person who depends on your income to live
all the taxable income you receive,including wages,tips,salaries and interest dividends unemployment
income, especially when of a company or organization and of a substantial nature
Ability to pay principle
The ability-to-pay principle in taxation maintains that taxes should be levied according a taxpayer's ability to pay.
is the taxing mechanism in which the taxing authority charges more taxes as the income of the taxpayer increases. A higher tax is collected from the taxpayers who earn more and lower taxes from taxpayers earning less.
A tax that takes a larger percentage from low-income people than from high-income people. A regressive tax is generally a tax that is applied uniformly. This means that it hits lower-income individuals harder.
is the taxing mechanism in which the taxing authority charges the same rate of tax from each taxpayer, irrespective of income. Definition: Proportional tax is the taxing mechanism in which the taxing authority charges the same rate of tax from each taxpayer, irrespective of income.
A United States government agency that is responsible for the collection and enforcement of taxes. The IRS was established in 1862 by President Lincoln and operates under the authority of the United States Department of the Treasury.
a range of incomes taxed at a given rate.
the amount by which something, especially a sum of money, is too small.
An assumption or principle that taxpayers will comply with tax laws and, more importantly, accurately report their income and deductions honestly.
the illegal nonpayment or underpayment of tax.
an official inspection of an individual's or organization's accounts, typically by an independent body.
Zero based budget
Income minus outcome equals zero based
a written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law.
elements of an enforceable contract
harmony or accordance in opinion or feeling; a position or result of agreeing.
careful thought, typically over a period of time.
A number of classes of people lack contractual capacity, and these include minors, the mentally challenged, those under the influence of an intoxicating substance and incarcerated convicts.
the quality or state of being in accordance with the law.
a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time, with the payer named on the document.
The act of signing for another person's debt which involves a legal obligation made by the cosigner to make payment on the other person's debt should that person default. Having a cosigner is way for individuals with a low income or poor/limited credit history to obtain financing.
a written guarantee, issued to the purchaser of an article by its manufacturer, promising to repair or replace it if necessary within a specified period of time.
an electronic document in which data is arranged in the rows and columns of a grid and can be manipulated and used in calculations.
a structured set of data held in a computer, especially one that is accessible in various ways.