Vocabulary
the excess created when income is higher than expenses
Surplus
protects workers' rights and safety
Department of Labor
Definition: is an area of the production, distribution and trade, as well as consumption of goods and services.
Economy
is levied upon a specific individual.
Direct Tax
Economic Goals
Full Employment
Price Stability
Economic Growth
the shortfall created when income is lower than expenses
Deficit
is the central banking system of the United States, made up of 12 regional banks.
The Federal Reserve
an economic and political system in which a country's trade and industry are controlled by private owners for profit.
Capitalism
tax can be shifted to another person for
payment.
Indirect Tax
the government’s power to influence the economy by regulating the money supply and the availability of credit
Monetary Policy
items in the federal budget that the government can increase or decrease spending on each year
Controllable Spending
sets rules for international trade and provides a place to settle disputes and negotiate trade agreements
World Trade Organization WTO
economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.
Socialism
tax is levied on each person’s earnings for the previous year.
Individual Income Tax
the government’s powers to tax and spend to influence the economy
Fiscal Policy
the view that increased government spending will create higher employment, boost the economy, and raise tax revenues
Demand-side Economics
established free trade among the United States, Canada, and Mexico
NAFTA
North American Free Trade Agreement
economic system where property is publicly owned and each person works and is paid according to their abilities and needs. Classes are in conflict with themselves.
Communism
Each corporation must pay income tax.
Corporation Income Tax
Positives and Negative of Globalization.
Positives:
More goods are available worldwide at lower prices
Developing nations can expand their economies and raise standards of living
New markets are opened for U.S. goods and services
Negatives
American manufacturing jobs are lost
Economic troubles abroad can hurt America
Rising trade deficits hurt the U.S. economy
the view that lower taxes, not greater government spending, will boost the economy
Supply-side economics
oversees the nation’s stock markets to ensure that they are obeying securities laws.
SEC
Securities and Exchange Commision
Economists usually describe an economy in which private enterprise and governmental participation coexist as a mixed economy.
Mixed Economy
also called tariffs or import duties, are charged on many goods imported into the United States.
Custom Duties
The Great Depression.............
At the height of the Great Depression, one fourth of the nation’s labor force was unemployed and 18 million were dependent on public relief programs.
State governments, private charities, and banks were all overwhelmed.
The traditional approach was to keep government involvement in the economy limited and let the free market solve the problem.