Exam 3 Flashcards
a society’s system of placing people into a hierarchy
social satisfaction
a system or organization in which people or groups are ranked one above the other according to status or authority
hierarchy
hierarchy is a ______ structure
verticle
satisfaction produces _____ _____
social classes
categories of people who have similar access to resources & opportunities
social classes
people _____ the same social class have _____ access to resources & opportunities
within, similar
the access to _____ is the most valuable
capital/money
salary of wages from a job plus earnings from any investments
income
value of all economic assets minus any debt
wealth
_____ is the money you make every year
income
____ is the total sum of all the money + assets you have saved
wealth
____ is used to build ____
income, wealth
there are unequal rates of increase; the extremely wealthy’s income doubled while the lower classes income increases by only a few dollars
adjusted income
wealth is distributed much _____ unequally than income
more
_____ of wealth is owned by ____ of the country
90%, 20%
the poores 1/5 of families have ____ ____ and are actually in ____
negative wealth, in debt
3 reasons the government taxes
-government operating costs
-discouraged behavior (sin tax)
-redistribute income + reduce inequality
through ____ ____, the tax rates go up as income increases
progressive taxation
a ____ ____ is a system that increases tax rates as income goes up; the ___ you ___ the ___ you ____
progressive tax; the more you make the more you pay
examples of progressive tax (3)
-capital gains
-rental earnings
-estate tax
a progressive tax system increases in ____; it does ____ charge the same rate of tax for all earnings
states; not
a ___ ____ is a tax in which everyone pays the same rate
proportional tax
regressive tax: tax burden ___ and income ___
decreases, increases
amount of tax paid by person, company, or country
tax burden