Vocab
Financial outlay:
What is an expenditure?
This is a tax:
What is a payment made by individuals & businesses to support government activities?
Extra money left in a budget after all spending takes place:
What is a budget surplus?
The market value of all final goods and services produced in a country in a year:
What is Gross Domestic Product (GDP)?
This is a block grant:
What is a grant of money to a state or local government to be used for general purpose?
Money a government collects from taxes or other sources:
What is revenue?
This is a severance tax:
What is a tax imposed by a state for the extraction of nonrenewable natural resources?
Condition occurs when the federal government spends more than it takes in:
What is a budget deficit?
The total amount of money the government has borrowed, but not paid back:
What is the National Debt?
Fees that a property owner must pay for services that benefit them:
What is a special assessment?
This is a fiscal year:
What is a 12-month accounting period: The federal government’s runs from October 1st to September 30th?
High customs duty:
What is a protective tariff?
Identify & explain the three tools the Federal Reserve uses to control the nation’s monetary policy:
What are:
Discount Rates- Interest rate the Federal Reserve charges member banks for loans.
Open-Market Operations- Means the Federal Reserve System uses to affect the economy by buying or selling government securities on the open market.
Reserve Requirements- Percentage of money member banks must keep in their vaults or on deposit with the Federal Reserve Banks as a reserve against their deposits?
Identify & explain the difference between real & personal property:
What are:
Both property taxes can be collected.
Real Property- Land & Buildings.
Personal Property- Movable belongings such as furniture & jewelry, as well as intangible items such as stocks & bonds?
This is market value:
What is the amount of money a property owner could expect to receive if the property were sold?
Required government expenditure that continues from one year to the next:
What is an entitlement?
The percentage of income taxes an individual pays increases as their income increases: the rate taxation applies to incomes within defined ranges or brackets:
What is the marginal tax rate?
List the five key economic indicators:
What are:
Unemployment Rate
Dow Jones Industrial Average (The Dow), S&P 500 & NASDAQ
Consumer Price Index (CPI)
Existing Home Sales
Consumer Confidence Index?
Identify & explain how taxable income, dependents & withholding are related:
What is:
Taxable income is calculated to determine one’s income tax. Exemptions on the tax include listing dependents on tax documents, where you have one who relies primarily on another person for basic needs such as food, clothing & shelter. When determining the income tax, the employers take money out of a worker’s paycheck in anticipation, this is called the withholding?
Government expenditure required by law or resulting from previous budgetary commitments:
What is an uncontrollable?
This is a security:
What is a financial instrument, including a bond, note & certificate, that are sold as means of borrowing money with a promise to repay the buyer with interest after a specified time period?
Define & list at least two examples of the excise, progressive & regressive taxes:
What are:
Excise Tax-
Tax on the manufacture, transportation, sale or consumption of goods & the performance of services.
Excise taxes are commonly levied on cigarettes, alcoholic beverages, soda, gasoline, insurance premiums, amusement activities, and betting,
Progressive Tax-
Tax whereby people with higher incomes pay a larger share of their income in taxes than people with lower incomes.
Tax low-income taxpayers at 10 percent, middle-income taxpayers at 15 percent and high-income taxpayers at 30 percent.
Regressive Tax-
Tax whereby people with lower incomes pay a larger share of their income in taxes than people with higher incomes.
These taxes include most sales taxes, payroll taxes, excise taxes, and property taxes?
List the six economic goals that all governments have:
What are:
Economic Freedom
Economic Growth
Full Employment
Economic Equity
Economic Security & Price Stability
Economic Efficiency?
Identify & compare the relationship between fiscal policy & monetary policy:
What are:
Monetary policy is executed by a country's central bank through open market operations, changing reserve requirements, and the use of its discount rate. Fiscal policy, on the other hand, is the responsibility of governments. It is evident through changes in government spending and tax collection?
This is a budget:
What is a plan for how much revenue an individual or government expects to take in & how this money will be spent or allotted?