Vocab S-W Flashcards
Salaries
Payments for work, usually calculated in periods of a week or longer. Salary is usually tied to the completion of specific duties over a minimum but not maximum number of hours.
Sales taxes
Taxes levied on the retail price of merchandise and collected by the retailer.
Savings
The accumulation of money set aside for future use.
Savings and loan associations
Financial institutions that provide loans and interest-bearing accounts.
Scarcity
The condition of not being able to have all of the goods and services that one wants; it exists because human wants for goods and services exceed the quantity of goods and services that can be produced using all available resources.
Self-employment
Work for oneself, not for an employer.
Self-interest
Regard for one’s personal advantage.
Services
Actions that can satisfy people’s wants.
Smart card
A plastic card containing a computer chip with memory and CPU capabilities. Such a card may be used for identification, to store information or financial amounts, or other forms of data. Also called an integrated circuit card or a chip card.
Social Security
A federal government program of transfer payments for retirement, disability, or the loss of income from a parent or guardian.
Standard of living
A measure of the goods and services affordable by and available to a person or a country; the dollar value is calculated as per capita GDP.
Supply
The quantities of goods, services, or resources that producers are willing and able to sell at all possible prices in a given time period.
Tax credits
An amount that a taxpayer who meets certain criteria can subtract from tax owed. Examples include a credit for earned income below a certain limit and for qualified post-secondary school expenses.
Tax-deferred
Financial investments where taxes due on the amount invested and/or its earnings are postponed until funds are withdrawn, usually at retirement.
Tax-exempt
Financial investments (e.g., municipal bonds) earnings that are free from tax liability.
Taxes
Government fees on business and individual income, activities, or products.
Tax shelter
An investment intended to reduce tax; any technique that allows one to legally reduce or avoid tax liabilities.
Tips
Amount paid beyond what is required, usually to express satisfaction with service quality; also know as a gratuity.
Trade-off
The act of giving up some of one thing to have more of another.
Transfer payments
Payments by governments, such as social security, veterans’ benefits, and welfare, to people who do not supply current goods, services, or labor in exchange for these payments.
Unearned income
Money received for which no exchange was made, such as a gift.
Unemployment rate
The percentage of people without jobs who were actively seeking work within the past 30 days.
Wages
Payment for work, usually calculated in periods of an hour. .
Wealth
Accumulated assets such as money and/or possessions, often as a result of saving and investment.
Withholding
The amount of an employee’s income that an employer sends directly to the federal, state, or local tax authority as partial payment of that individual’s tax liability for the year. When people start new jobs they are required to complete a W-4 form on which they indicate their filing status and the number of allowances they are claiming.
