(10 points) Online Quiz for Unit Six Vocabulary (Quizlet): https://quizlet.com/83617157/unit-6-economics-vocabulary-flash-cards/
(1 Point Each) Example of Current Economic Topic From Unit Six:
1.)` Sales Tax: The Minnesota (MN) state sales tax rate is currently 6.875%. Depending on local municipalities, the total tax rate can be as high as 7.875%.
2.) Corporate Income Tax: Minnesota's corporate income tax system consists of a flat rate of 9.8%. That rate ranks 3rd highest among states levying a corporate income tax.
3.) Property Tax: Median property tax price for Carver County is $2,992
4.) Balanced Budget: Republicans of Minnesota House just release their target budget to be $39.949 billion of overall general spending
5.) National Debt: Current national debt for the United States is approximately $18,245,384,151,265
(10 points) Unit Six Vocabulary Definitions & Original Examples:
Tax base - The maximum amount of earnings on which a tax is calculated
· Sales tax
Individual income tax - a tax on a person's earnings
· House tax
Sales tax - A tax on a sale of merchandise or services
· Tax on a toy
Property tax - a capital tax on property imposed by municipalities
· Tax on your property like a house
Corporate income tax - a tax on the value of a company's profits
· Federal tax rates
Proportional tax - A tax in which the average tax rate is the same at all income levels.
· Sales tax
Progressive tax - A tax for which the percentage of income paid in taxes increases as income increases
· Federal income tax in America
Regressive tax - A tax for which the percentage of income paid in taxes decreases as income increases
· If a person has a $10 of income and must pay $1 on a package of cigarettes
Tax burden - falls more heavily on the side of the market that is less elastic
· Is shown between buyers and sellers
Withholding - Taking tax payments out of an employee's pay before he or she receives it
· Taking money out of your target paycheck
Tax return - an annual report to the IRS summarizing total income, deductions, and the taxes withheld by employers
· On April 15 you had to pay taxes and you get some money back
Taxable income - income on which tax must be paid; total income minus exemptions and deductions
· Your original income before the deduction of taxes
Personal exemption - set amount that you subtract from your gross income for yourself, your spouse, and any dependents
· Subtracted money from your gross income
Deductions - Amounts subtracted from your gross pay.
· Subtracts from your gross pay
FICA - Amount of social security tax withheld from a paycheck.
· Social security
Social security - (FDR) 1935, guaranteed retirement payments for enrolled workers beginning at age 65; set up federal-state system of unemployment insurance and care for dependent mothers and children, the handicapped, and public health
· A number that gets you into your bank account
Medicare - A federal program of health insurance for persons 65 years of age and older
· Helps old people have cheaper health insurance
Estate tax - A tax on the estate, or total value of the money and property, of a person who has died
· Your dead grandpas house tax
Gift tax - a tax imposed on transfers of property by gift during the lifetime of the giver
· A tax on a lifetime gift
Import tax - a tax on imported goods
· Tax on imported tea
Tax incentive - the use of taxation to encourage or discourage certain behavior
· Using tax as a bribery
Mandatory spending - Required got spending by permanent laws
· Food stamps
Entitlement spending - Spending determined by the number of qualified recipients and their legally determined need is called
· Medicaid
Federal aid to state governments - Categorical Grants
· Social security
Operating budget - Budget for day-to-day expenses
· Spending budgets
Balanced budget - a budget is balanced when current expenditures are equal to receipts
· A balanced weekly budget
Tax exempt - not subject to taxes
· Subject taxes
Real property - Interests, benefits, and rights associated with real estate ownership
· Benefits on owning a house
Personal property - All property not classified as real property
· A house
Tax assessor - The person who assigns value to property for tax purposes
· A realtor
Fiscal policy - A government policy for dealing with the budget (especially with taxation and borrowing)
· Government needing to deal with a the countries borrowing budget
Federal budget - a plan for the federal government's revenues and spending for the coming year
· Federal government budget
Fiscal year - An accounting period of 12 months.
· Year where you have to account
Office of management and budget - helps the president prepare the annual federal budget
· Meeting that helps president prepare a federal budget
Congressional budget office - Advises Congress on the probable consequences of its decisions, forecasts revenues, and is a counterweight to the president's Office of Management and Budget.
· Advising congress for its decisions
Appropriations bill - An act of Congress that actually funds programs within limits established by authorization bills. Appropriations usually cover one year.
· Food stamps
Expansionary policies - fiscal policies, like higher spending and tax cuts, that encourage economic growth
· Fiscal policies
Contraction policies - Low spending high taxes
· Low spending and than you have to pay high taxes
Classical economics - the idea that free markets can regulate themselves
· Claire’s jewelry store
Productive capacity - the maximum output that an economy could produce without big increases in inflation
· Maximum output
Demand side economics - the idea that government spending and tax cuts help an economy by raising demand
· Raising demand
Supply side economics - An economic philosophy that holds the sharply cutting taxes will increase the incentive people have to work, save, and invest. Greater investments will lead to more jobs, a more productive economy, and more tax revenues for the government.
· More jobs
Keynesian economics - Theory based on the principles of John Maynard Keynes, stating that government spending should increase during business slumps and be curbed during booms.
· Spending should increase during business slumps
Multiplier effect - An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent.
· National income
Automatic stabilizer - Changes in fiscal policy that stimulate aggregate demand when the economy goes into a recession without policymakers having to take any deliberate action
· Policymakers taking action
Council of economic advisers - a three-member body appointed by the president to advise the president on economic policy
· Joe Biden
Lifer curve - Attempts to explain how consumers react to changes in income tax rate
· Consumers reaction
Budget surplus - An excess of tax revenue over government spending
· Tax revenue
Treasury bills - U.S. government obligations generally issued with 4, 13, and 26-week maturities.
· Government obligations
Treasury notes - certificates issued by the US Treasury in exchange for minimum amounts of $1,000 and maturing in 1 to 10 years
· Notes on bills
Treasury bonds - US government obligations with original maturities of more than 10 years. They are issued in $1000 denominations and pay interest semiannually
· Bonds
National debt - The sum of government deficits over time.
· Our nations debt
(1 Point Each) Example of Current Economic Topic From Unit Six:
1.)` Sales Tax: The Minnesota (MN) state sales tax rate is currently 6.875%. Depending on local municipalities, the total tax rate can be as high as 7.875%.
2.) Corporate Income Tax: Minnesota's corporate income tax system consists of a flat rate of 9.8%. That rate ranks 3rd highest among states levying a corporate income tax.
3.) Property Tax: Median property tax price for Carver County is $2,992
4.) Balanced Budget: Republicans of Minnesota House just release their target budget to be $39.949 billion of overall general spending
5.) National Debt: Current national debt for the United States is approximately $18,245,384,151,265
(10 points) Unit Six Vocabulary Definitions & Original Examples:
Tax base - The maximum amount of earnings on which a tax is calculated
· Sales tax
Individual income tax - a tax on a person's earnings
· House tax
Sales tax - A tax on a sale of merchandise or services
· Tax on a toy
Property tax - a capital tax on property imposed by municipalities
· Tax on your property like a house
Corporate income tax - a tax on the value of a company's profits
· Federal tax rates
Proportional tax - A tax in which the average tax rate is the same at all income levels.
· Sales tax
Progressive tax - A tax for which the percentage of income paid in taxes increases as income increases
· Federal income tax in America
Regressive tax - A tax for which the percentage of income paid in taxes decreases as income increases
· If a person has a $10 of income and must pay $1 on a package of cigarettes
Tax burden - falls more heavily on the side of the market that is less elastic
· Is shown between buyers and sellers
Withholding - Taking tax payments out of an employee's pay before he or she receives it
· Taking money out of your target paycheck
Tax return - an annual report to the IRS summarizing total income, deductions, and the taxes withheld by employers
· On April 15 you had to pay taxes and you get some money back
Taxable income - income on which tax must be paid; total income minus exemptions and deductions
· Your original income before the deduction of taxes
Personal exemption - set amount that you subtract from your gross income for yourself, your spouse, and any dependents
· Subtracted money from your gross income
Deductions - Amounts subtracted from your gross pay.
· Subtracts from your gross pay
FICA - Amount of social security tax withheld from a paycheck.
· Social security
Social security - (FDR) 1935, guaranteed retirement payments for enrolled workers beginning at age 65; set up federal-state system of unemployment insurance and care for dependent mothers and children, the handicapped, and public health
· A number that gets you into your bank account
Medicare - A federal program of health insurance for persons 65 years of age and older
· Helps old people have cheaper health insurance
Estate tax - A tax on the estate, or total value of the money and property, of a person who has died
· Your dead grandpas house tax
Gift tax - a tax imposed on transfers of property by gift during the lifetime of the giver
· A tax on a lifetime gift
Import tax - a tax on imported goods
· Tax on imported tea
Tax incentive - the use of taxation to encourage or discourage certain behavior
· Using tax as a bribery
Mandatory spending - Required got spending by permanent laws
· Food stamps
Entitlement spending - Spending determined by the number of qualified recipients and their legally determined need is called
· Medicaid
Federal aid to state governments - Categorical Grants
· Social security
Operating budget - Budget for day-to-day expenses
· Spending budgets
Balanced budget - a budget is balanced when current expenditures are equal to receipts
· A balanced weekly budget
Tax exempt - not subject to taxes
· Subject taxes
Real property - Interests, benefits, and rights associated with real estate ownership
· Benefits on owning a house
Personal property - All property not classified as real property
· A house
Tax assessor - The person who assigns value to property for tax purposes
· A realtor
Fiscal policy - A government policy for dealing with the budget (especially with taxation and borrowing)
· Government needing to deal with a the countries borrowing budget
Federal budget - a plan for the federal government's revenues and spending for the coming year
· Federal government budget
Fiscal year - An accounting period of 12 months.
· Year where you have to account
Office of management and budget - helps the president prepare the annual federal budget
· Meeting that helps president prepare a federal budget
Congressional budget office - Advises Congress on the probable consequences of its decisions, forecasts revenues, and is a counterweight to the president's Office of Management and Budget.
· Advising congress for its decisions
Appropriations bill - An act of Congress that actually funds programs within limits established by authorization bills. Appropriations usually cover one year.
· Food stamps
Expansionary policies - fiscal policies, like higher spending and tax cuts, that encourage economic growth
· Fiscal policies
Contraction policies - Low spending high taxes
· Low spending and than you have to pay high taxes
Classical economics - the idea that free markets can regulate themselves
· Claire’s jewelry store
Productive capacity - the maximum output that an economy could produce without big increases in inflation
· Maximum output
Demand side economics - the idea that government spending and tax cuts help an economy by raising demand
· Raising demand
Supply side economics - An economic philosophy that holds the sharply cutting taxes will increase the incentive people have to work, save, and invest. Greater investments will lead to more jobs, a more productive economy, and more tax revenues for the government.
· More jobs
Keynesian economics - Theory based on the principles of John Maynard Keynes, stating that government spending should increase during business slumps and be curbed during booms.
· Spending should increase during business slumps
Multiplier effect - An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent.
· National income
Automatic stabilizer - Changes in fiscal policy that stimulate aggregate demand when the economy goes into a recession without policymakers having to take any deliberate action
· Policymakers taking action
Council of economic advisers - a three-member body appointed by the president to advise the president on economic policy
· Joe Biden
Lifer curve - Attempts to explain how consumers react to changes in income tax rate
· Consumers reaction
Budget surplus - An excess of tax revenue over government spending
· Tax revenue
Treasury bills - U.S. government obligations generally issued with 4, 13, and 26-week maturities.
· Government obligations
Treasury notes - certificates issued by the US Treasury in exchange for minimum amounts of $1,000 and maturing in 1 to 10 years
· Notes on bills
Treasury bonds - US government obligations with original maturities of more than 10 years. They are issued in $1000 denominations and pay interest semiannually
· Bonds
National debt - The sum of government deficits over time.
· Our nations debt