vocab unit 4 Flashcards
A tax in which the percentage of income you pay increases as your income increases.
progressive tax
A tax in which the percentage of income you pay decreases as your income increases.
regressive tax
A tax in which everyone pays the same percentage of income. Also called a Proportional Tax.
flat tax
The medical assistance program which helps many Americans (particularly those with low incomes) get the medical treatments they need.
medicaid
A bill that proposes the spending of money
appropriations bill
The medical assistance program which helps many Americans (particularly the elderly and disabled) get the medical treatments they need.
medicare
When the government spends more money than it takes in. Spending is greater than revenue.
budget deficit
When the government spends less money than it takes in. Spending is less than revenue.
budget surplus
A tax paid by employers that partly funds Social Security
and Medicare.
FICA
The portion of the budget that the government is required by law to spend.
mandatory spending
The portion of the budget that the government can choose whether or not to spend.
discretionary spending
The total of all the money owed by a country for all years.
national debt
government programs that provide a guaranteed benefit to anyone who meets present requirements
entitlements
The way in which the actions of the government influences and affects the economy.
fiscal policy
The removal of government restrictions.
deregulation
The total of all goods and services businesses are willing and able to supply at all price levels.
aggregate supply
The total of all goods and services consumers are willing and able to buy at all price levels.
aggregate demand
Being able to produce a good or service more efficiently at a lower total cost.
absolute advantage
Being able to produce a good or service at a lower opportunity cost.
comparative advantage
Anything that interferes with the importing and exporting of goods and services.
trade barrier
The idea that it is more important to protect domestic jobs than to encourage the removal of
trade barriers.
protectionists
The idea that it is more important to encourage the removal of trade barriers than to protect domestic jobs.
free traders
A trade agreement between the United States, Mexico, and Canada to remove trade barriers between them.
USMCA
When the exchange rate between two countries’ currencies is held constant and not allowed to fluctuate.
fixed exchange-rates
When the exchange rate between two countries’ currencies is allowed to fluctuate with the foreign exchange market.
flexible exchange rates
An increase in the value of a country’s currency.
appreciation
A decrease in the value of a country’s currency.
depreciation
A comparison of the exports and imports of a country.
balance of trade
When a country’s imports are greater than its exports.
trade deficit
When a country’s exports are greater than its imports.
trade surplus
An organization dedicated to encouraging the reduction and removal of
trade barriers around the world.
world trade organization
A formal organization of businesses in a market that collude together to increase their profits.
cartel
