Types of Money
What is money?
A medium of exchange,a unit of account and a store of value
What are the three types of taxes?
Proportional tax,Progressive tax, and Regressive tax
What are the five types of unemployment?
1.)frictional
2.)seasonal
3.)structural
4.)cyclical
5.)discouraged workers
What are the four types of economic systems?
Traditional,Command,Socialist Economy, and Market Economy
What is a sole proprietorship?
What is a unit of account?
A means for comparing the values of goods and services
What is regressive tax?
The tax rate increases as your income decreases
What is frictional unemployment?
In between jobs
What type of ownership of resources belongs to a command economy?
a.)private ownership
b.)government ownership
c.)government and private ownership
b.)government ownership
What are some advantages of a partnership?
1.) Its easy to start up
2.)Ease of management
3.)Lack of separate taxes on a partnership income
4.)Can attract financial capital more easily than sole proprietorship's
5.)More efficient operations that come with their slightly larger size
What is commodity money?
An object that has value by itself and as money
What is proportional tax?
Tax rate remains the same whether your income increases or decreases
What is cyclical unemployment?
According to the business cycle
What types of activities do traditional economic systems do?
simple activates like farming and hunting.
What are some disadvantages of corporations?
1.)Double taxation
2.)Expensive
3.)Owners/shareholders have little say in how the business is run
4.)Subject to government regulation than other forms of business
What are two characteristics of money?
1.)acceptability
2.)limited supply
3.)uniformity
4.)divisibility
5.)portability
6.)durability
What is progressive tax?
Tax rate increases as your income increases
What are discouraged workers?
Discouraged workers are people that have given up looking for work
Whats are the differences of a socialist economy and a market economy?
Socialist has private and gov. ownership and the decisions of what to sell are made for the people and not by them, whilst market economy has private ownership and individuals can decided what they want to sell or buy
What is a franchise?
A business model where one business owner sells the rights to their business logo,name and model to an independent entrepreneur