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