Midterm Review - Alvaro Mejia

interdependence

A relationship between countries in which they rely on one another for resources, goods, or services

shortage

A situation in which quantity demanded is greater than quantity supplied

equilibrium

A state of balance

income

money received, especially on a regular basis, for work or through investments.

debt

something, typically money, that is owed or due

payroll tax

tax on wages and salaries to finance Social Security and Medicare costs

property rights

the ability of an individual to own and exercise control over scarce resources

government regulation

the act of controlling business behavior through a set of rules or laws

unemployment

the number of people who are actively looking for work but aren't currently employed

globalization

the process by which businesses or other organizations develop international influence or start operating on an international scale.

education

the process through which academic, social, and cultural ideas and tools, both general and specific, are developed

exchange rates

the value of a currency in one country compared with the value in another

government intervention

The practice of government to intervene in markets, preventing the free functioning of the market, usually for the purpose of achieving particular economic or social objectives.

supply

The quantity of something that producers have available for sale

fed monetary policy

When the fed believes there is danger that economic growth is likely to result in inflation, it may raise its asset reserve requirements for members, raise its target for the fed funds rate, raise the discount rate, & sell government securities through its open market operations.

inflation

a general increase in prices and fall in the purchasing value of money.

tax deductible

a qualified expense that may reduce the amount of income subject to taxation

buisness cycle

alternating periods of economic growth and contraction

imports

goods produced abroad and sold domestically

exports

goods produced domestically and sold abroad

types of income

gross income, disposable income, discretionary income

revanue

how much income you bring in

tax credit

An amount subtracted directly from the tax owed

college

An institution of higher education that awards degrees and certificates.

demand

Consumer willingness and ability to buy products

taxes

Fees for the support of government required to be paid by people and businesses.

fiscal policy

Government policy that attempts to manage the economy by controlling taxing and spending.

1040 Form

Income tax form used by people who may earn well above average income, have a home mortgage, run their own business, or own shares of stock

scarcity

Limited quantities of resources to meet unlimited wants