Economics unit 3 terms

law of demand

as price goes up demand goes down. As price goes down, demand goes up.

law of supply

as price increases, supply goes up. as prices decrease, supply goes down

determinant of demand

factors that shift the demand curve for a product, changing the quantity consumers are willing to buy at all possible prices

substitutes (demand)

2 equal goods, ones cheaper so demand goes up, the more expensive ones demand goes down

compliments

goods that go good together

expectations

if we expect something to happen, demand will be effected

population

more people = more demand. less people = less demand

tastes

the things you like, popular things, trends

income

the more you make, the more you demand. the less you make, the less you demand

progressive tax

the more you make, the more they take

regressive tax

the more you make, the less you pay as a % income (sales tax)

portional tax

everyone pays the same % of wealth in taxes (property)

disasters (determinants)

natural/unnatural, reduce supplies

technology

better tech = more supply

number of firms

more business equals more supplies

taxes/goverment

taxes on business makes supply decrease

inputs

costs of production

W-4 tax form

estimate of earnings, fill when get a job

W-2 tax form

summary of earnings, employer fills out by jan 31st to give you your W-2

1040 tax form

tax return, determine your deductions

Schumer box

easy to read box information, all costs listed here

bank credit cards

issued by financial institution and issued by service provider

travel cards

issued by service provider and entire balance must be paid off

retail cards

issued by particular retailer, balance paid-off at the end of month

Will

a legal document that districts assets upon death, guardianship for minors

trust

a legal document that owns assets

deductions

variable amounts you can deduct from gross income (interest on mortgage, donations, some medical expenses)

exemptions

sets amounts you can subtract from your gross income (child tax credit)

income

paychecks, investments

property

local gov’s main source of revenue. based on the value of your property inheritance (death tax)

goods/services

sales tax on cars, clothes, movie, tickets, etc

April 15th

it should be clear when taxes should be done

congress

the power to tax

gross pay

total compensation before any money is taken out

net pay

the actual amount deposited in your bank account or received in your paycheck