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Definition
| Gross Domestic Product, total amount of products produced in the US in a period of time. |
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Term
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Definition
is a measure of the level of prices of all new, domestically produced, final goods and services in an economy..
=Nominal GDP/realGDP * 100 |
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Definition
| an unincorporated business owned by one single person |
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Term
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Definition
| A business/ company that is owned by two people. they may or may not have equal amount of ownership |
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Term
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| A single person or a group of people that own a business and that act as one entity. |
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Term
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Definition
| to put your money into something that will be profitable in the future. |
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Term
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Definition
| the using up of goods and services by a consumer purchasing it. |
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Term
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Definition
| A tax that is paid directly by an individual or organization to the imposing entity..... Example: taxpayer pays direct tax to government including real property tax and income tax. |
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Term
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Definition
| a tax levied on goods or services rather than on persons or organizations... Example: fuel, liquor and cigarette taxes. |
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Term
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Definition
| A tax that takes a larger percentage from the income of high-income earners than it does from low-income individuals. Your tax rate increases. |
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Term
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Definition
| A tax that takes a larger percentage from low-income people than from high-income people. A regressive tax is generally a tax that is applied uniformly. |
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Term
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Definition
| How much money you have after paying necessary fees |
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Term
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Definition
| The amount of money that households have available for spending and saving after income taxes have been accounted for. |
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Term
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Definition
| On the edge, the last dollar you got. |
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Term
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Definition
| An inclination or natural tendency to behave in a particular way |
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Term
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Definition
| A prolonged period of little or no growth in the economy. Economic growth of less than 2 to 3% annually is considered stagnation. Periods of stagnation are also marked by high unemployment and involuntary part-time employment. |
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Term
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Definition
| A general decline in prices, often caused by a reduction in the supply of money or credit. Deflation can be caused also by a decrease in government, personal or investment spending. |
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Term
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Definition
Average Propensity to Save,
is an economic term that refers to the proportion of income that is saved rather than spent on goods and services. |
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Term
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Definition
| Marginal Propensity to Consume, A component of Keynesian theory, MPC represents the proportion of an aggregate raise in pay that is spent on the consumption of goods and services, as opposed to being saved. |
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Term
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Definition
An adjustment made to Social Security and supplemental security income in order to adjust benefits to counteract the effects of inflation. COLAs are generally equal to the percentage increase in the consumer price index.. For example, if Kevin received $10,000 last year for Social Security benefits and COLAs for this year were 4.1%, then his benefits for this year would be $10,410.
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Term
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Definition
| Is when a person is jobless,and that person is actively searching for employment is unable to find work. |
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Term
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Definition
| Workers that are highly skilled but work in low skill jobs and part-time workers that would prefer to be full-time. |
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Term
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Definition
| The percentage of the total labor force that is unemployed but actively seeking employment and willing to work. |
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Term
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Definition
| Per Head, Average per person |
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Term
| Give 2 examples each of consumer expenditure, investment expenditure, and government expenditure. |
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Definition
Consumer expenditure-->Shoes, Underwear
Investment expenditure--> Stock in company, Shares in a corporation
Government expenditure-->Military, Education |
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Term
| Why is the CPI important to GDP? |
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Definition
| CPI is important to GDP because it works as a deflator, and adjusts the dollar value. The reason why consumer price index is important to GDP because it is what measures the price of goods and services. |
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Term
| What is inflation and how dos it affect GDP? |
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Definition
| Inflation is the increase in the general level of prices of goods and services for the economy for a certain period of time. And it’s so important for GDP because inflation affects the prices of goods and services. |
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Term
| Why is the federal government now funding programs that used to be run by the states? |
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Definition
| Government spending, Keynesian Theory. |
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Term
| What is the "underground economy" and why does it exist? |
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Definition
| Underground Economy is the part of the country’s economic activity that is unrecorded and un-taxed by its environment. |
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Term
| What are the advantages and disadvantages of a corporation? |
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Definition
| The advantage of being in a corporation is that they have more capital and may split the work up between them. The disadvantage of a corporation is the business decisions are now not completely up to you. |
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Term
| Why is a chair purchased by you considered different than a chair purchased by IBM? |
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Definition
| The reason why purchasing a chair is different if you buy it compared to the IBM is because the chair you buy is for personal use while the IBM buys the chair for someone that helps them make money (worker). |
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Term
| What is the rationale behind the concept of "deprivation"? |
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Definition
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Term
| Besides rising prices, what effect does inflation have on people's lives? |
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Definition
| Money in the back is worth less. Income is now worth less. |
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Term
| Why is the Deflation bad for business and the national economy? |
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Definition
| Deflation is bad for the economy because the economy will lose money since companies paid more to make a product or service and then they receive less back. People pay less for the product. |
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Term
| Why is the Inflation bad for business and the national economy? |
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Definition
| The effect that inflation will have on people is that the value of the dollar will go down and they’ll be able to consume less for what they have. |
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Term
| Why has there been inflation during wars? |
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Definition
| There is inflation during wars because we need to produce weapons and send troops and because we naturally don't have the money laying around, we print it, causing inflation. |
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Term
| What is the "Futures Market" and how does that help farmers? |
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Definition
| The future’s market is a program when farmers are paid before they give off the crops for money and it’s good for farmers because when the season changes, or a drought occurs, or there is something wrong with planting, the farmers will always have that money there to support themselves and family. |
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Term
| Are COLA's good protection against inflation? What other effects do COLA's have? |
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Definition
| Yes, they protect against Social Security and supplemental security income. COLA are equally to the percentage increase of CPI. |
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Term
| How are "Demand-Pull" Inflation and "Cost Push: Wage-Price" Inflation related? |
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Definition
| Demand Pull is when demand increases and their is little supply. Wage-Price is when income increases people have more disposable income to buy goods causing prices to rise. Both deal with the price rising due to demand rising. |
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Term
| How are "Cost-Push Profit-Push" and "Cost Push: Supply-Side" Inflation related? |
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Definition
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Term
| What is the official definition of an Unemployed Person? |
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Definition
| The official definition of an unemployed person is someone that hasn’t worked for more than a month, capable of working, and currently looking for a job. |
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Term
| Where does the money for unemployment benefits come from and how does that affect the unemployment rate? |
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Definition
| It's raised through state and federal unemployment insurance taxes on employers. The unemployment rate stays relatively the same. |
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Term
| Can you calculate the taxes of someone working within a Progessive tax system? |
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Definition
| Calculate the money you must pay from each tax rate. Add them together. Divide number buy income. Find tax rate you are paying. |
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Term
| Can you calculate someone's APC and APS? |
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Definition
| APC (average propensity to consume)-->Gross Income – Taxes = Disposable Income--> Total Consumption/Disposable Income |
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Term
| Can you calculate someone's MPC and MPS? |
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Definition
| MPC (marginal propensity to consume)-->Gross Income – Taxes = Disposable Income-->Change in Consumption/Change in Disposable Income |
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