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### Combined Definitions List
- Net Pay: The income received after all taxes and deductions are subtracted from gross pay.
- Disposable Income: Income remaining after taxes, used for basic living expenses.
- Discretionary Income: The income left after covering necessities, available for non-essential spending or savings.
- Payroll Deductions: Amounts taken out of an employee's gross pay for taxes, benefits, and retirement contributions.
- Income Tax: A government levy on individual or corporate earnings.
- FICA Tax: A payroll tax funding Social Security and Medicare, split between employees and employers.
- W-2: A form reporting an employee’s yearly wages and tax withholdings.
- W-4: A form employees use to indicate tax withholding preferences to employers.
- 1040: The main form individuals file for federal income taxes.
- Rule of 72: A formula estimating how long it takes for an investment to double, dividing 72 by the annual interest rate.
- Diversified Investment: A strategy spreading investments across asset types to minimize risk.
- Zero-Based Budget: A budgeting approach where every dollar is assigned a purpose, leaving no surplus.
- FICO Score: A credit score evaluating creditworthiness, ranging from 300 to 850.
- Stocks: Shares representing ownership in a corporation, offering a portion of profits.
- Bonds: Debt securities where investors lend money to issuers in exchange for interest payments and repayment.
- Federal Trade Commission (FTC): A U.S. agency protecting consumers and ensuring fair competition.
- Securities and Exchange Commission (SEC): A U.S. agency regulating securities markets to protect investors.
- Capitalism: An economic system where private ownership drives production, distribution, and profits with minimal government control.
- Communism: A system where the government owns all resources and production, distributing based on need.
- Socialism: A system blending private ownership with government control of major industries to promote equality.
- Scarcity: The fundamental economic issue of limited resources against unlimited wants.
- Supply: The quantity of a good or service producers are willing to offer at different prices.
- Demand: The quantity of a good or service consumers are willing and able to purchase at various prices.
- Opportunity Cost: The value of the next best alternative foregone when making a decision.
- Trade-Off: A compromise made when choosing one option over another.
- 4 Factors of Production: Resources required to produce goods and services—land, labor, capital, and entrepreneurship.
- Monopoly: A market dominated by a single supplier, eliminating competition.
- Inflation: The rise in prices over time, decreasing purchasing power.
- GDP (Gross Domestic Product): The total value of goods and services produced within a country during a specific time.
- 4 Parts of the Business Cycle: Expansion (growth), peak (highest point), contraction (decline), and trough (lowest point).
- Sole Proprietor: A business owned and run by one person, bearing all profits and risks.
- Strike: Employees' refusal to work as a protest, often over pay or conditions.
- Injunction: A legal order compelling or preventing specific actions.
- Embargo: A government-imposed ban on trade with a particular country.
- Lockout: When employers prevent workers from entering the workplace during a labor dispute.
- Federal Reserve: The central bank of the U.S., managing monetary policy and regulating banks.
- Patent: A legal right granting exclusive use of an invention for a set period.
- Tariff: A tax on imported goods to protect domestic industries or raise revenue.
- NAFTA (North American Free Trade Agreement): A trade pact between the U.S., Canada, and Mexico reducing trade barriers.
- Balance of Trade: The difference between a country’s exports and imports.
- Exchange Rate: The value of one currency relative to another.
- Debtors: Individuals or entities that owe money.
- Creditors: Individuals or entities to whom money is owed.