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What is Passive Income?
Money you earn that is not from working
What is Conservative Investment?
Investments with a low chance of risk
What are Corporate Taxes?
Taxes placed on business profits
What is Deficit?
Government spends more money than it takes in through taxes
What are Consumers?
Buy or purchase goods and services
What are Fixed Expenses?
Expenses that remain the same from month to month
What is Excise Tax?
Taxes on specific products like airline tickets, cigarettes, and alcohol…used to pay for cost of the product or discourage use of the product
What is Capital Gains Tax?
Tax paid when an investment such as a stocks are sold for profit
What is Medicaid?
Government-run health insurance program for lower income people
What is Scarcity and what does it cause?
Lack of adequate resources to satisfy unlimited wants…limited resources and unlimited wants
What are Variable Expenses?
Expenses that change from month to month
What is Social Security?
Program meant to provide for income to individuals who have reached the age of legal retirement or are unable to work
What is Progressive Tax?
Tax paid at a different rate depending on the level of income
What is a Good?
Physical or tangible products that are bartered or sold
What is a Traditional Economy?
Based on family or traditional beliefs and ways of doing things
What is an Escrow Account?
Money held by a third party for a specific purpose
What is Medicare?
Healthcare program for people receiving Social Security
What is Flat Tax?
Tax paid in the same proportion regardless of income
What is a Service?
Activities that are bartered or sold. Services are intangible
What is a Market Economy?
Producers own the resources used to make their goods and services and consumers use their resources to buy the goods and services
What is Aggressive Investment?
Investments with a high chance of risk
What is Estate Tax?
Taxes placed on the value of a percent of a person’s property (their estate) after they die…Serves the purpose of a tax on wealth
What is Surplus?
Government raises more funds in taxes than it spends
What are Producers?
Make goods and provide services
What is a Command Economy?
The government owns the factors of production and makes the economic decisions for society