Georgia Studies Economics and Personal Finance

Goods/Services Produced throughout History

•at different times of its history, GA has produced many different things and provided different services

•EX: indigo, tobacco, cotton, naval stores, liberty ships, B-29's, pecans, peanuts, peaches, films

Four Transportation Systems

1. Interstate Highway Systems

2. Hartsfield-Jackson Int'l Airport

3. Deepwater Ports (Savannah, Brunswick)

4. RRs

Interstate Highway System

•1 of 4 major transportation systems

•roads used for trading and transportation

•provides jobs

Atlanta's Int'l Airport

•1 of 4 major transportation systems

•transports goods and people by plane

•provides jobs

•est. by William Hartsfield

•improved by Maynard Jackson

Deepwater Ports

•1 of 4 main transportation systems

•transports goods by water

•Used for int'l trade

Railroads

•1 of 4 major transportation systems

•transports goods by train

•provides jobs

Entrepreneur

•a person who takes on the risk and organizes, manages, and owns a business.

•Benefits: Be your own boss & receiving majority of the profit

•Pitfalls: Many businesses fail in the first 5 years & many stand to lose their money

Profit

•Profit: the amount of money gained in transaction

•Profit is incentive to risk starting a business or invest in something

•Greater risk = greater potential profit earned/lost

Risk

•an entrepreneur assumes this when starting a business.

•as it increases, the potential for loss or profit also increases

Coca-Cola

•Headquartered in Atlanta

•Invented by John "Doc" Pemberton

•Under Robert Woodruff, grew to be an international brand. Recognized all over world.

Delta Airlines

•headquartered in Atlanta

•largest airline in world, employs 80,000

Revenue

•Money that the state & local governments take in from taxes or federal grants

Sales Tax

•Taxes paid on purchases

•Second largest source of state revenue

Personal Income Tax

•Largest source of state revenue

•Based on the amount of money one makes per year

Property Tax

•Tax based on the value of the property one owns

•Most of this money goes to fund public education

State Budget

•The state must have a balanced budget

•The state cannot spend more than it makes, otherwise programs are cut

•Proposed each year by the governor to the General Assembly

Gross Income

•Total amount of money a person makes per year

Expenditure

•An amount of money spent on goods and services.

Credit

•Buying something, but not paying for it immediately

•(buy now, pay later)

Savings

•Putting money aside in an interest earning account

•Ex.: savings, money market, CD

Investing

•Using money to make money

•The higher the risk, the higher the potential reward

•Ex.: stocks, bonds, land

Net Income

•The income a citizen actually receives in his/her paycheck

•Gross income minus taxes, etc.

Debt

Money owed

Tourism Industry

•Currently the state's fifth largest employer

•Visitors come from both within and outside the state of Georgia

Reasons for Creating a Household Budget

•Help monitor spending and avoid debt

•Assists with monthly saving goals

Budget

•A plan for spending money