Taxes
A tax on imported goods
What is a tariff?
A set of external (rather than intrinsic) motivators that explain people's decisions
What is incentives?
The study of production, employment, prices, and policies on a nationwide scale
What is macroeconomics?
A situation where the market fails to produce the amount a society wants
A legal debt or financial obligation that must be paid back
What is liability?
The government spending more money than it collects in tax revenue
What is deficit spending?
The percentage rate that a borrower must pay for taking out a loan
What is interest rate?
The study of how consumers, workers, and firms interact to generate outcomes in specific markets
What is microeconomics?
The amount of physical goods and services that can be bought by a given amount of money
What is purchasing power?
When a debtor is unable to meet the legal obligation of debt repayment
What is default?
A tax by which the government takes a greater share of the income of the rich than of the poor
What is progressive tax?
The rate that the Fed charges commercial banks to borrow money
What is discount rate?
An increase in currency supply relative to the number of people using it, resulting in rising prices of services and good over time
What is inflation?
The loss of potential gain from other alternatives when one alternative is chosen
What is opportunity cost?
An asset that cannot quickly be converted into cash without significant loss of value
A tax whereby people with lower incomes pay a higher fraction of their income than people with higher incomes
What is regressive tax?
The value of a country's currency that changes based on market forces
What is floating exchange rate?
A term economist use when a price from the past has been adjusted for inflation
When the full cost of a product doesn't line up with the costs that manufactures and consumers pay
What is negative externality?
An asset that can quickly be converted into cash with minimal impact to the price received
What is liquid assets?
Raising taxes and cutting government spending to reduce debt
When the government manipulates the value of a country's currency
What is fixed exchange rate?
A term economists use when a price from the past has not been adjusted for inflation
What is "nominal"?
The difference between the value of the assets/interest and the cost of the liabilities of something owned
What is equity?
The process of taking an illiquid asset and transforming it into a security
What is securitize?