Terms in this set (49)
D: A tax on the estate, or total value of the money and property, of a person who has died.
Ex: A, $5 million estate,however, will be taxed by the federal government at a high rate than $2 million estate.
Estate tax rises with increasing value. More $= More taxes
D: A tax for which the percentage of income paid in taxes remains the same for all income levels.
Ex: Flat Tax. Ron's Income is $50,000 and Mary's is $150,000. Both pay a flat tax of 15% but pay different amounts.
Individual Income Tax
D: A tax on a person's earnings
Ex: A man with kids a wife will pay less taxes than a single man.
D: A tax for which the percentage of income paid in taxes decreases as income increases.
Ex: Sales Tax. Ron ($50,000) vs Mary ($150,000). Ron will pay more because he makes less.
Corporate income tax
D: A tax on the value of a company's profits.
D: any human made resource that is used to create other goods and services
Ex: Human-skills, knowledge and experience. Physical- equipment, machinery.
D: A situation in which a good or a service is unavailable.
C: A shortage is man-made and temporary whereas scarcity is natural and permanent.
A shortage can be temporary or long-term, but scarcity always exists.
Thinking at the Margin
D: Deciding whether to do or use one additional unit of some resource
Ex: Margins on a piece of paper
D: limited quantities of resources to meet unlimited wants.
C: A shortage can be removed but a scarcity cannot be removed. It will always exist.
A shortage is price determined whereas scarcity is a natural phenomenon.
Centrally planned economies
D: economic system in which the central government makes all decisions on the production and consumption of goods and services
Ex: Cuba, Korea, China (Communist)
D: The concentration of the productive efforts of individuals and firms on a limited number of activities.
Ex: Mechanic, Plumber
D: economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets.
Ex: Stores, farmers markets
D: households purchase the goods and services that firms produce
Ex: Grocery Store
D: the method used by a society to produce and distribute goods and services.
Ex: Communism, Capitalism, Free Market
D: government programs that protect people from experiencing unfavorable economic conditions.
Ex: injuries, layoffs, natural disasters
D: a national health insurance program that that helps pay for health care for people 65 years of age and older.
D: Entitlement program that benefits low-income families some people with disabilities, and elderly people in nursing homes.
D: Old-Age, Survivors, and Disability Insurance (OASDI)
D: A social and political philosophy based on the belief that democratic means should be used to evenly distribute wealth throughout a society.
Ex: Venezuela and India
Soc vs Comm- Socialism owns means to production while communism does not, the working class do.
D: An economic system that combines the free market with limited government involvement.
D: the concerns of the public as a whole.
Ex: Consumer protection- labels on packages with info on the product.
D: An economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume.
Ex: Dam created->swimming,boating and fishing but ->loss of wildlife,overcrowding and disruption of fish migration.
D: Government aid to the poor.
Ex: Social Security, Unemployment Insurance, Workers compensation
D: a cost that rises or falls depending on how much is produced.
Ex: Raw Materials and Labor
D: a maximum price that can be legally charged for a good or service. On "essential goods"
Ex:Housing in rent - to ensure there will be affordable housing for those who can't afford the price Market.
C: Price ceiling is a max while price floor is a minimum.
D: The point at which quantity demanded and quantity supplied are equal. (Stability)
D: describes any price or quantity not at equilibrium; when quantity supplied is not equal to quantity demanded in a market
D: a price ceiling placed on rent.
A: Rent control often motivated by a desire to help poor households by cutting their housing costs and permitting them to live in neighborhoods they otherwise could not afford.
D: The financial and opportunity costs consumers pay when searching for a good or service.
Ex: Looking for a rare doll. Driving to different stores and calling different towns to find the doll.
Supply and Demand
D:The amount of goods available
D:The desire to own something and the ability to pay for it
C: What producers supply and what consumers demand in economics. Supply increases demand decreases. Supply decreases demand increases.
D: a sudden shortage of a good
A: At times producers raise prices in an effort to stop the consumer from buying at that time.
Ex: Electricity, gasoline
GDP (Gross Domestic Product)
D:The dollar value of all final goods and services produced within a country's borders in a given year.
Ex:Cars made in Ohio, Japanese Factory here making cars
GNP (Gross National Product)
The total value of all goods and services produced by a country's economy in a given year. It includes all the goods and services produced by corporations and individuals of a country, whether or not they are located within the country.
Ex: Cars made in USA but sold in China
D: a period of macroeconomic expansion followed by a period of contraction.
Expansion-> peak-> contraction->trough
Ex: Stock market, gas prices, economy
D: goods that are ready for their final use by consumers and firms
D: taxes that fund Social Security and Medicare.
Ex: Employers withhold money from employees and pour it into Federal Insurance contribution Act.
D: social welfare program that people are "entitled to" if they meet certain eligibility requirements.
Ex: Social Security, Medicare, Medicaid
D: A form of demand-side Economics that encourages government action to increase or decrease demand and output.
D: a school of economics that believes tax cuts can help an economy by raising supply.
A: taxes have strong negative influence on output
D:the idea that free markets can regulate themselves.
Ex: free economy
D: the part of the economy that involves the transactions of individuals and businesses.
Ex: jobs where employees are working for non-governmental agencies
D: the part of the economy that involves the transactions of the government.
Ex: jobs are generally within a government agency
D: A fiscal policies, like higher spending and tax cuts, that encourage economic growth.
C: used to grow not slow
D: fiscal policies, like lower spending and higher taxes, that reduce economic growth.
Ex: used slow not grow
D: the idea that every one dollar of government spending creates more than one dollar in economic activity.
Ex: Govt gives $1 million to a corporation. The workers will receive a higher income. The extra money will be spent on themselves. Stores receive more $ and output increases. Thus boosting our economy.
D: a plan for the federal government's revenues and spending for the coming year.
A: the amount that the federal govt can spend each year.
Ex: Labor costs, roads, buildings
D: using fewer resources than an economy is capable of using
Ex: farm land
D: A government payment that supports a business or market.
Ex: Governments in developing countries often subsidize manufacturers to protect young growing industries from strong foreign competition.
D: when quantity demanded is more than quantity supplied
Ex: Apple products
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