Unit 3: Government and Global Markets

Taxes

money people and businesses pay to the government that is used to help the government and country function

Tax Revenue

the amount of money collected from taxes

Deficit

When you spend more money than you have or earn

National Debt

the amount of money a country’s government has borrowed

Mandatory Spending

annual federal/government spending that is required by law.

Social Security

a federal income/benefits program for retired Americans and those on disability.

Medicare

Health insurance for elderly

Medicaid

Health insurance for poor

Discretionary Spending

government spending that must be approved each year by Congress. Ex: national defense, science research, agriculture, etc.

Types of Taxes

income, property, inheritance/estate, luxury, entertainment, sales, etc.

Excise Tax

tax on specific products like tobacco, alcohol, gas, etc. Also called a “sin tax” and normally included in the price of the good.

Intellectual Property

Ownership of your own ideas/creations.

Patent

protects inventions, products, and processes to make inventions

Trademark

protects brands, logos, slogans, and designs

Copyright

Protects music, art, literature, dances, software, and architecture

Licensing

When the owner of intellectual property gives others the right to USE their property often for a royalty

Royalty

percent of money paid every time a product is sold

Creative Commons

way for creators of intellectual property to allow public to use their creation for free but still get credit for their work

Eminent Domain

government’s ability to confiscate property for public use

5th Amendment

Amendment in the Constitution that includes your right to be compensated by the government if they use eminent domain on your property

Regulatory Agency

government agency that regulates a specific part of the economy or country. It also enforces the regulations it creates

Food and Drug Administration (FDA)

the government agency in charge of regulating food, drugs, cosmetics, medical devices, etc.

Federal Trade Commission (FTC)

the government agency in charge of regulating marketing and advertising. It is their job to make sure ads are honest

Environmental Protection Agency (EPA)

the government agency in charge of enforcing environmental regulations and protecting the environment

Securities and Exchange Commission (SEC)

the government agency in charge of regulating the stock market

Globalization

the spread of technology, goods, services, information, and interaction across the world

Imports

foreign goods from other countries

Exports

goods from your own country that go to other countries

Trade Blocs

Groups of countries that make trade agreements between them. Ex: UMCA and EU

Free Trade

agreement between countries to make it easier to trade with each other

Protectionism

policy to restrict international trade in favor of domestic businesses

Embargo

banning trade with a particular country

Tariff

tax on imports

Quota

limiting the amount of imports coming into your country