Travel Costs & Budgeting
These five things make up the major categories of travel expenses
What are airfare, lodging, food, transportation, and activities?
This is the government‑issued form of money used for buying and selling.
What is Currency
Inflation causes the value of money to do this
decrease, able to buy less
Taxes are considered this in the circular flow model.
Leakage
This tax is added to products like gasoline, cigarettes, alcohol, and airline tickets.
Excise tax
Traveling during this time of year usually increases prices.
Peak season
The currency used in Japan IS CALLED WHAT?
THE YEN
This type of inflation happens when demand exceeds supply.
What is demand‑pull inflation?
These two groups pay taxes to the government
Who are individuals and businesses
These business structures are pass‑through entities
What are sole proprietorships and partnerships
This budgeting strategy involves purchasing flights long before the travel date.
What is booking early
A strong currency OF A COUNTRY YOU ARE traveling abroad MAKES THE COST WHAT?
MORE EXPENSIVE
This type of inflation occurs when production costs rise
What is cost‑push inflation?
Name three major public services funded by tax revenue
What are Social Security, Medicare, national defense, education, transportation, or other public services
Corporations are taxed in this way.
What is separately from their owners
Choosing one option and giving up another is known as this economic concept.
Trade Off
These four factors influence the value of a currency.
What are economic policies, political stability, market psychology, and economic conditions
This is the opposite of inflation and can lead to unemployment and economic depression.
What is deflation
When tax revenue is not enough, the government does this
What is borrow money
Businesses can reduce taxable income by deducting these types of expenses.
What are equipment, salaries, utilities, and other business expenses
This concept describes the value of the next best alternative you give up when making a choice.
Opportunity Cost
Travelers should choose destinations where this gives them more purchasing power
What is the exchange rate
This tool helps businesses track inflation and plan for price changes
What is the Consumer Price Index (CPI)?
This government agency is responsible for collecting taxes
What is the IRS (Internal Revenue Service)
These are the six major types of business taxes. Name 3
What are income tax, payroll tax, self‑employment tax, excise tax, property tax, and sales tax