OFFICIAL BUSINESS

W2

Statement of your income given to you by your employer. Annual

Patent

legal protection granted to an inventor for a limited time to protect their invention from being used, copied or sold by others

Colaterall

Ther’re not going to give you a loan unless you have collateral

IRS

Internal Revenue Service. Collect taxes in the US

1040

To fill out annual income tax return

monetary policy

a set of actions available to a nation's central bank to achieve sustainable economic growth by adjusting the money supply.

Federal Funds Rate

The federal funds rate is the interest rate banks use when lending money to each other overnight.

discount rate

the minimum interest rate set by the Federal Reserve for lending to other banks.

prime rate

Prime rate or prime lending refers to the lowest commercial interest rate charged by a banks at a particular time

FICA tax

FICA is a U.S. federal payroll tax. It stands for the Federal Insurance Contributions Act and is deducted from each paycheck.

IRS - Internal Revenue Service

The Internal Revenue Service (IRS) administers and enforces U.S. federal tax laws. The IRS role is to help the large majority of compliant taxpayers with the tax law, while ensuring that the minority who are unwilling to comply pay their fair share

USPTO - The United States Patent and Trademark Office

The United States Patent and Trademark Office (USPTO) is the federal agency for granting U.S. patents and registering trademarks.

Copyright:

A legal right to print, publish, perform, film, record artistic or musical material

Trademark

Idetifies a source of your goods or services and provides legal protection for your brand.

GDP

Gross Domestic Product- Total market value of goods and services produced in a nation within 12 months

Communism

State ownership of the means of production

Cost

Supply&Demand

Means of Production

Land, Labor, and Capital

Recession

2 consecutive quarters of negative GDP growth

Seasonal unemployment

A person loses their job when the tourists leave

CPI

A basket of marketplace goods and services that determines inflation

Demand pull

an increase in demand

Inflation

A general rise in prices is commonly referred to as inflation

Federal Reserve

This unelected government body determines monetary policy

Congress

Legislative branch the determines taxes and expenses

Fiscal Policy

Government policy that includes taxing and spending

What % of workers are considered full employment

96%

If supply goes UP and demand goes DOWN, cost goes ?

DOWN

If supply goes DOWN and demand stays the EVEN —- , cost goes ?

UP

How does a decrease in interest rate impact car sales… up or down

UP

How does bad credit impact your mortgage rate… up or down

UP

National Debt

Accumulated total of all governments annual budget deficits

Fiscal Deficit

When government spens more than it collects in taxes

Goods

tangible items manufactured by businesses, such as laptops

Services

intangible offerings of businesses that can’t be held, touched, or stored

Standard of Living

Countries are measured by the output of goods and services people can buy with the money they have

Quality of Life

Refers to the general level of human happiness based on such things as life expectancy, educational standards, health, sanitation, and leisure time

Risk

Potential to lose time and money or otherwise not be able to accomplish an organizations goals

Revenue

Money a company receives by providing services or selling goods to customers

Costs

Expenses for companies incur from creating and selling goods and services. Like Rent, Salaries,Supplies, Transportation

Knowledge

refers to the combined talents and skills of the workforce and has become a primary driver of economic growth

Demography

Study of People’s vital, statistics, such as their age, gender, race, and location

Technology

is the application of science and engineering skills and knowledge to solve production and organizational problems

Productivity

is the amount of goods & services one worker can produce

Economic System

Combination of policies, laws, and choices made by its government to establish the systems that determine what goods & services are produced

Economics

Study of how a society uses scarce resources to produced and distribute goods & services

Capitalism

Private enterprise system- based on competition in the marketplace and private ownership of the factors of production (resources)

Communism

State ownership of the means of production

Socialism

Basic industries are owned by the government or by the private sector under strong government control

Mixed economic system

U.S. economy leans towards pure capitalism, but it uses government policies to promote economic stability/ Use more than one economic system

Macroeconomics

Study of the economy as a whole

Microeconomics

Focuses on individual parts of the economy, such as household firms

Net Profit

Gross Profit

(Revenue-Cost of Goods)

Wholesale

the selling of goods in large quantities

Retail

the sale of goods to the public in relatively small quantities for use or consumption rather than for resale.

Operating expenses

the costs that a company incurs while performing its normal operational activities.

revenues

the total amount of money brought in by a company's operations, measured over a set amount of time

expenses

the cost required for something; the money spent on something

gross sales

the total amount of your sales without factoring in deductions

net sales

the total sales revenue of a company made over a specific period of time after deducting sales allowances, discounts, returns, and taxes.

assets

any useful thing or something that holds value.

liabilities

something that a person or company owes, usually a sum of money

owners equity

(assets- liability). the portion of a company's assets that an owner can claim

sarbanes-oxley act

The act created strict new rules for accountants, auditors, and corporate officers and imposed more stringent recordkeeping requirements.

balance sheet

summarizes a company's assets, liabilities and shareholders' equity at a specific point in time

liquidity

to get your money whenever you need it

depreciation

The monetary value of an asset decreases over time due to use, wear and tear or obsolescence

m1

coins and currency in circulation

Accounts payable

money owed by a company to its creditors.

Accounts recivable

money owed to a company by its debtors.

Balance of Trade

Import-Exports /  the difference in value over a period of time between a country's imports and exports

Law of Demand

when the price of a product goes up, the quantity demanded will go down

Law of supply

  an increase in the price of goods or services results in an increase in their supply

If unemployment goes up because of a recession. How will that affect M1?

It goes down because people aren't earning money so they're not spending it. So m1 goes down because of the impact.

Exports

to send to another country to sell

 Imports

a country receives goods, services, or raw materials into their borders that have been produced or originate in another country

balance of payments

a record of all funds going in and out of a country

floating exchange rates

A type of exchange rate determined by the supply and demand for a country's currency in the foreign exchange (forex) market

Devaluation

a downward adjustment to a country's value of money relative to a foreign currency or standard

absolute advantage

when a producer can provide a good or service in greater quantity for the same cost, or the same quantity at a lower cost, than its competitors

 comparative advantage

 an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners

 free trade

trade between nations without restrictions (as high taxes on imports)

Outsourcing

to hire someone outside a company to do work

tariffs

A tax on products that go from one country to another

 import quota

government-imposed limits on the quantity of a certain good that can be imported into a country

 Embargo

a trade restriction, typically adopted by a government, a group of countries, or an international organization as an economic sanction

Dumping

when an exporter sells a product in a foreign country at a price that's lower than in their home country

World Trade Organization-

 the only international organization dealing with the rules of trade between nations

IMF

International bank that makes loans to help countries fiscal challenges

World Bank-

an international bank that offers loans to countries developing nations for infastructure projects

 Infrastructure

 the basic physical structures and facilities needed for an organization or society to function, such as buildings, roads, and power supplies.

Balance sheet

a snapshot of an account. A business owner looks at accounts payable and receivables. 

Owners equity=

Assets-liabilities

Net sales=

gross revenue - returns

Gross profit=

Net Sales - Cost of goods sold (COGS)

Law of supply:

Supply increases with price of good sold

Law of demand:

demand varies according to price

MNC- Multinational corporation

Corporations that move resources, goods, across national boundraies without regards to the country where they are headquartered

 absolute advantage

When a country can produce and sell more of a product than another country