Studied by 3 people
money
a “medium of exchange”; commonly accepted in exchange for goods and services
Federal Reserve
the central bank of the United States
inflation
the rise of prices over time
investment
money spent in order to make more money
credit reporting bureaus
companies that keep track of your credit history
economy
the way goods and services are produced and consumed
consumer
someone who acquires goods and services
producer
someone who makes goods or offers services to others
profit
the financial gain received by selling something for more than it cost to make
innovation
the process of developing newer, better things
supply
the amount of something that is available
demand
the quantity of a good that consumers want to purchase
opportunity cost
the benefit you give up by choosing to do one thing instead of another
scarcity
a limited amount of resources available
tax
an amount of money citizens and businesses are required to pay so that the government can function and provide services
excise tax
a tax that only applies to certain products, such as alcohol and tobacco
income tax
the tax you pay on profits you earned from various sources, such as your job
corporate income tax
a tax on profits made by corporations
progressive tax
the more income or profit a person or company has, the high tax rate they have to pay
Social Security
the basic retirement program run by the federal government
social security tax
a percentage of your earnings that gets put into the Social Security system
Medicare
the federal government’s health care system for people age 65 and over
property tax
taxes people pay on the land they own
estate tax
a tax the government collects when a person dies; often called “death taxes”
tariffs
taxes on goods that are imported to the U.S. from other countries
market economy
the type of economy in which most goods and services are offered by private companies
command economy
the type of economy in which the government owns and offers all the goods and services and decides what those goods and services will cost
mixed economy
a market economy in which the government owns some property, offers some kinds of goods and services, and makes some rules that affect how businesses can compete
monopoly
one company controls an entire industry without any competition
anti-trust laws
prohibit monopolies and other activity that reduces competition
Sherman Anti-Trust Act of 1890
prohibits companies from any activity “in restraint of trade,” meaning activity that reduces competition
Clayton Antitrust Act of 1914
gives the U.S. government the power to prevent companies from merging together if the merger will reduce competition
Federal Trade Commission
government agency created to carry out the powers in the Clayton Act
budget
a plan for spending
mandatory spending
spending that is required by law
discretionary spending
spending that Congress decides on each year
deficit spending
spending more money than is brought in
surplus
bringing in more money than spent
April 15
What day of the year are federal income tax returns generally due?
Private Property
Markets & Prices
Incentives/Self-Interest
Freedom of Choice
Competition
Limited Government Role
Name the six traits of a Market Economy
Note
Flashcard