Vocab
closed shop
a labor union agreement where an employer agrees to hire only individuals who are already members of a specific union and must remain in good standing to keep their job
right to work laws
state-level regulations in the U.S. that prohibit union security agreements, making it illegal to require employees to join a union or pay dues as a condition of employment
minimum wage
the lowest hourly, daily, or monthly remuneration that employers can legally pay employees, functioning as a price floor for labor
federal reserve system (fed)
the central banking system of the United States, established in 1913 by the Federal Reserve Act to provide a safe, flexible, and stable monetary and financial system
federal deposit insurance corporation (FDIC)
an independent agency created by the Congress to maintain stability and public confidence in the nation's financial system
certificate of deposit (CD)
A low-risk, interest-earning savings account offered by banks or credit unions, holding a fixed amount of money for a set period (term) in exchange for a higher interest rate than traditional savings accounts.
pension
An employer-sponsored retirement plan, often called a defined benefit plan, that provides guaranteed, regular, and typically lifelong income to employees after retirement.
individual retirement account (IRA)
a tax-advantaged, personal savings plan that allows individuals to set aside funds for retirement, independent of employer-sponsored plans like 401(k)s.
401(k) plan
A company-sponsored retirement savings account authorized by the Internal Revenue Code, allowing employees to contribute a portion of their paycheck into an investment account.
a price-weighted stock market index tracking 30 large,blue-chip U.S. companies across various industries. Created in 1896, it serves as a widely followed barometer for the overall health and direction of the U.S. economy.
Standard and Poor's 500 (S&P 500)
a market-capitalization-weighted index tracking 500 of the largest publicly traded U.S. companies, serving as a primary benchmark for the overall American economy and stock market performance.
gross domestic product (GDP)
the total monetary or market value of all final goods and services produced within a country's borders in a specific time period (usually a year or quarter).
infrastructure
the foundational physical structures, facilities, and systems that directly enable economic activity, trade, and development
business cycles
represents the natural, recurring fluctuation of economic activity over time, moving between periods of growth (expansion) and decline (contraction/recession)
deflation
a sustained, general decline in the prices of goods and services across an economy, occurring when the inflation rate falls below 0%
consumer price index
a key economic indicator that measures the average change over time in prices paid by urban consumers for a representative "market basket" of goods and services, such as food, housing, and medical care
creditors
an individual, business, or financial institution that lends money or extends credit to another party (the debtor) with the expectation of repayment, often including interest
debtors
an individual, company, or government that owes a financial obligation or money to another party, known as the creditor
unemployment rate
a key economic indicator measuring the percentage of the labor force that is jobless, available for work, and actively seeking employment
sin tax
an excise tax levied on specific goods deemed harmful to individuals or society
tax loopholes
a legal provision, ambiguity, or omission in tax law that allows individuals or corporations to reduce their tax liability, often in ways not originally intended by lawmakers
tax return
a formal document filed annually with government authorities (like the IRS) reporting an individual’s or organization’s income, expenses, deductions, and credits
progressive tax
a tax system where the tax rate increases as the taxable amount (income) increases
marginal tax rate
the percentage of tax applied to the last dollar of income earned, representing the highest tax rate applied to an individual's or corporation's taxable income
flat tax
a tax system applying a single, uniform rate to all taxable income, regardless of the taxpayer's income level or assets