Economic Systems
The amount of money a person makes
What is income?
Changes in consumption that result from changes in real income
What is income effect
A way to compare the values of goods and services.
What is a unit of account?
A tax for which the percentage of income paid in taxes remains the same at all income levels
What is a proportional tax?
An independent group that raises money for development programs
What is a nongovernmental organization?
When individuals and businesses do only what they do best
What is specialization?
A product or good that consumers demand more of when their incomes increase
What is normal goods
coins and paper bills that are used as money
What is currency?
Taking tax payments out of an employee’s pay before he or she receives it
What is withholding?
The sale or transfer of government- owned businesses to individuals
What is privatization?
A company that produces goods or services, and A social unit comprised of those living together in the same dwelling
What is Firm and a Household
A Latin phrase that means “ all other things held constant”
What is Ceteris paribus
A bank that belongs to the Federal Reserve System
What is a member bank?
A tax on certain goods made in this country
What is an excise tax?
The growing connection of producers, consumers, and financial systems around the world
What is Globalization?
A range of possibilities with no clear divisions between them
What is Continuum
A chart that lists how much of a good all suppliers will offer at various prices
What is market supply schedule
To remove controls on
What is to Deregulate?
An official who determines the value of property
What is a Tax assessor?
Large-scale destruction of forests
What is Deforestation?
The idea that government should not get involved in economic matters
What is laissez faire
A tax placed on the creation or sale of a product
What is an excise tax
The seizure of property from borrowers who are unable to pay back their loans
What is Foreclosure?
A budget for spending on major long-term projects
What is a capital budget?
The movement of all or part of a company’s operations to some other country
What is offshoring?