Economics Flashcards
loss
-when the amount of money a person or company spends is more than they receive or take in
profit
-the positive gain from an investment or business after subtracting expenses
taxes
-the money that the government collects from individuals and businesses to pay for public goods and services
good
-something you can feel or any kind of merchandise
supply
-the amount of something available for use
demand
-how much of a product or service is desired by buyers
barter
-to trade
scarcity
-there is a limited supply of something
service
-any kind of work performed for others
economics
-the study of making, buying, and selling of goods and services
producer
-anyone who makes or grows a good or performs a service
consumer
-anyone who buys a good or service
specialization
-when an individual or company does one part of a task and relies on others to complete the other part of the task
entrepreneur
-a person who comes up with a product or service or a better way to produce one
-opportunity cost
-the process of choosing one good or service over another
interdependence
-when people depend on one another
free enterprise
-when companies compete with one another to get the most customers
interest
-the payment made for the use of borrowed money
national debt
-the interest plus the total amount of money that the government has borrowed
revenue
-money that is brought in after any given profit, not concerning deductions
fees
-payments charged by governments for various licenses
fine
-money charged as a penalty for breaking certain laws
bond
-a certificate that states that the government has borrowed a certain sum of money from the owner of the bondm
maturity date
-the date on which the money owed, along with any interest, becomes due
income tax
-taxes on earnings
progressive tax
-a tax that takes a larger percentage of income from higher-income groups than from lower-income groups
regressive tax
-a tax that takes a larger percentage of income from low-income groups than from high-income groups
property tax
-a tax on the value of the property owned by a person or business
tariff
-taxes on imported goods
excise tax
-tax collected on luxury goods and services
Which agency collects taxes for the federal government?
the Internal Revenue Service (IRS)
Why are budgets important?
They are written to plan for and pay for the government’s operations, usually for one year.
Which agency helps the President manage the budget?
the Office of Management and Budget (OMB)
Why is an audit important?
They monitor how money is being used by the government to ensure that funds are spent according to law.
IRS
-agency of the Treasury Department that handles the federal collection of taxes
U.S. Customs Service
-federal agency in charge of handling tariffs on imported goods
comptroller
-state or local officials responsible for ensuring public funds are spent as authorized
What federal official is responsible for planning the budget?
president
OMB
-federal agency that helps prepare the federal budget
What is the federal body that turns the federal budget into law?
Congress
balance budget
-when government revenue equals government expenditures (the amount of money the government collects equals the amount of money is spends)
surplus
-when government collects more money than it spends
deficit
-when the government spends more money than it collects
audit
-a careful examination by trained accountants of every item of income and expenditure
Sales Tax
-a percentage of the total price of everything in your shopping cart
Excise Tax
-added to the price of certain items such as alcohol, airfare, gas, etc.
Tariffs
-added to the price of many goods made in other countries
Income Tax
-a percentage of the total amount of Sincome you have for the year
Social Security Tax
-used to fund a retirement program for U.S. workers
Medicare Tax
-used to fund healthcare programs for people age 65 and older
Property Tax
-a tax on the value of land and property you own
Estate Tax
-a tax on what you own when you die, if it is worth a very high amount
