Circular Flow
The place where goods and services produced by business are sold to households.
The Product Market
Education actually makes you more productive by giving you the skills to succeed in the workforce.
The Human Capital Argument.
Pay for every hour worked, usually paid weekly or every 2 weeks.
Hourly wage
Investing your money in a variety of investments that mature at different rates or times.
Diversification
Rely on assets as collateral and have lower interest rates, such as home loans and auto loans.
Secured loans
The place where resources (Land, Labor, Capital, and entrepreneurship) are sold to businesses.
The resource (Factor) Market
Personal characteristics, social skills and communication skills that enable a person to interact effectively with others.
Soft skills
Workers who provide a good or service under a one-time contract and do not work regularly for an employer.
Independent contractors
Loans or IUO’s, that represents debt that the government or a corporation must repay to an investor.
Bonds
Like typical mortgage loans, they are not ensured by government agencies.
Conventional loans
The part of the economy that is run by individuals and businesses.
Private Sector
Getting a diploma “Signals” to potential employers that you are more likely to become a valuable employee( Regardless of actual skills).
The Signaling Argument
The percentage rate does not change with income level. All tax payers pay the same regardless of their income, but will be a different dollar amount.
Proportional Tax
Portions of a corporation’s profits are paid out to stockholders of many corporations.
Dividends
Provides income in case you are unable to work.
Disability Insurance
When the government redistributes income.
Subsides
The additional revenue generated by an additional worker(Resource).
The Marginal Revenue Product
A plan to manage your money by monitoring your income and tracking your expenses.
Budgeting
Earned when a stockholder sells stock for more than he or she paid for it.
Capital gains
Relates to assets or property that could be used to help repay the debt.
Collateral
Six factors that shift the supply of labor.
Education and training, availability of alternate options, immigration and mobility of workers, cultural expectations, working conditions, preferences for leisure.
Some people get paid differently for doing the same job based on race and gender.
Wage Discrimination
The percentage rate increases as income increases. People with higher incomes pay a higher percentage than those with lower income.
Progressive tax
An individual retirement account that allows you to make a contribution without paying taxes. When you withdraw from the account, you will be taxed.
Traditional IRA.
The monthly amount paid for a policy.
Premium