Chapter 13
A rapid increase in the general level of prices is called
Because sales tax takes a smaller share of income as income increases, it is considered to be what kind of tax?
regressive
These are issued by state and local governments and are tax exempt
municipal bonds
The percentage increase in the average price level of goods and services from one month or year to the next.
inflation rate
Adam Smith’s four tax maxims are
certainty, convenience, efficiency, and equity
High interest rates cause a(n) _____________ in borrowing
decrease
These are statistics the help economists judge the health of an economy.
economic indicators
One of the most important ways local governments raise revenue is through
property taxes
Investors who want to play the market, but do not want to risk all their money on one or a few companies usually invest in
mutual funds
The market value of all final goods and service produced within a country during a given period of time.
Gross Domestic Product
Advocates who favor a ___________ tax believe it is the fairest tax structure because everyone pays an equal share of the tax burden
proportional
This stock index is based on the performance of 30 largest American publicly traded companies.
Dow Jones Industrial Average
The demand-pull theory places responsibility for inflation on
consumers
The Federal Insurance Contributions Act (FICA) is a U.S. law that mandates a payroll tax on the paychecks of employees, as well as contributions from employers, to fund these two programs:
Social Security and Medicare programs
An investor with a _______________ has holdings in several different companies
diversified portfolio