Unit 7
What is Perfect Competition
market where a large number of well-informed and independent buyers and sellers exchange identical products
what is immigration
the action of coming to live permanently in a foreign country.
Accelerated Depreciation
earlier and larger depreciation charges that allowed
firms to reduce federal income tax payments
Deficit Spending
spending in excess of revenues collected
Unskilled labor
Workers whose jobs don't need a special skill
what is a trust?
combination of corporations or companies
Reasons for Immigrating
Financial opportunities
Political freedom
War and/or Civil unrest
Pulled from home country by family members/ friends
Investment tax credit
reduction in business taxes tied to investment in new plants and equipment
National Debt
Total amount borrowed from investors to finance deficit spending
Minimum wage
15.50
What are 3 types of Antitrust Legislation?
Restricts monopolies and trusts, levels the playing field
Includes: price discrimination, cease and desist order
FTC (Federal Trade Commission) is watchdog
Life of New Immigrants Struggles
culture
language
education
credibility/ acceptance
economic positioning
citizenship/ ability to gain meaningful employment
alternative minimum
tax personal income tax rate that applies whenever the amount of taxes paid falls below a designated level
Trust Funds
special accounts used to fund specific types of expenditures
Dollars not adjusted for inflation
Current dollars
What is Market Failure?
Occurs when one of the several conditions necessary for competitive markets doesn’t exist
Arguments anti-immigrants
Drains from economy
“Steals” jobs from natives
Weakens nation by sending dollars out to home country
Burden of educating offspring
Not necessary for international development
capital gains
profits from the sale of an asset (stocks) held for twelve months or longer
Crowding-out effect
higher-than-normal interest rates caused by heavy
government borrowing
Types of unions
Trade or craft union
What is the main role of the government?
Arguments pro-immigrants
Produce for economy
Fill jobs otherwise not filled (low labor costs, high work ethics)
Strengthening of home nations by sending dollars home
Education benefits for offspring
Makes nation more “fluid” with other countries
value-added tax (VAT)
tax placed on the value that manufacturers add at each stage of production
Entitlements
broad social programs for eligible individuals
When was American Federation of labor founded?
1886