Vocab S-W

Question 1

Salaries

Answer 1

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.

Question 2

Sales taxes

Answer 2

Taxes levied on the retail price of merchandise and collected by the retailer.

Question 3

Savings

Answer 3

The accumulation of money set aside for future use.

Question 4

Savings and loan associations

Answer 4

Financial institutions that provide loans and interest-bearing accounts.

Question 5

Scarcity

Answer 5

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.

Question 6

Self-employment

Answer 6

Work for oneself, not for an employer.

Question 7

Self-interest

Answer 7

Regard for one’s personal advantage.

Question 8

Services

Answer 8

Actions that can satisfy people’s wants.

Question 9

Smart card

Answer 9

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.

Question 10

Social Security

Answer 10

A federal government program of transfer payments for retirement, disability, or the loss of income from a parent or guardian.

Question 11

Standard of living

Answer 11

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.

Question 12

Supply

Answer 12

The quantities of goods, services, or resources that producers are willing and able to sell at all possible prices in a given time period.

Question 13

Tax credits

Answer 13

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.

Question 14

Tax-deferred

Answer 14

Financial investments where taxes due on the amount invested and/or its earnings are postponed until funds are withdrawn, usually at retirement.

Question 15

Tax-exempt

Answer 15

Financial investments (e.g., municipal bonds) earnings that are free from tax liability.

Question 16

Taxes

Answer 16

Government fees on business and individual income, activities, or products.

Question 17

Tax shelter

Answer 17

An investment intended to reduce tax; any technique that allows one to legally reduce or avoid tax liabilities.

Question 18

Tips

Answer 18

Amount paid beyond what is required, usually to express satisfaction with service quality; also know as a gratuity.

Question 19

Trade-off

Answer 19

The act of giving up some of one thing to have more of another.

Question 20

Transfer payments

Answer 20

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.

Question 21

Unearned income

Answer 21

Money received for which no exchange was made, such as a gift.

Question 22

Unemployment rate

Answer 22

The percentage of people without jobs who were actively seeking work within the past 30 days.

Question 23

Wages

Answer 23

Payment for work, usually calculated in periods of an hour. .

Question 24

Wealth

Answer 24

Accumulated assets such as money and/or possessions, often as a result of saving and investment.

Question 25

Withholding

Answer 25

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.