Vocabulary
The act of following established laws and guidelines is called:
Compliance
A sales tax is a type of:
A. Direct Tax B. Proportional Tax
C. Progressive Tax D. Indirect Tax
D. Indirect Tax
Someone who starts and runs a business
Entrepreneur
Spending that is required by law is known as
Mandatory Spending
What gives the United States Gov. the power to collect taxes?
The Constitution
What vocab word plays a role in economic growth by influencing the supply of goods?
Monetarism
You also need to know the 2 main goals of monetarism (Controlling inflation and reducing unemployment!!!!)
Which of the following best describes income tax?
A. Direct Tax B. Proportional Tax
C. Regressive Tax D. Indirect Tax
A. Direct Tax
Name 2 benefits/rewards of being an entrepreneur
-Financial Benefit
-Personal Fulfillment
-Flexibility in scheduling
-Job security (no one can fire you)
How are expansionary policy and contractionary policy different?
Teacher discretion
Name 2 government regulatory health safety organizations
Examples Include:
OSHA (Occupational Safety and Health Administration)
FDA (The Food and Drug Administration)
EPA (The Environmental Protection Agency)
SEC (Securities and Exchange Commission)
FDIC (Federal Deposit Insurance Corporation)
OCC (The Office of the of the Comptroller Currency)
The Fed (The Federal Reserve)
What is the full name of the US central bank, known as the fed?
The Federal Reserve Bank
List 3 things that have an excise tax:
Examples include:
Alcohol
Cigarettes
Marijuana
Gas
Tanning
Gambling
Name 2 risks of being an entrepreneur:
Examples include:
-Financial Risk
-Lack of security
-Long term debt/loss of assets
-Unemployment (If the business fails)
What are the two goals of gov. spending?
1. Meeting public needs
2. Improving economic indicators
List 2 examples of positive externalities when it comes to regulation:
Examples include:
-Vaccinations
-Education
-Research and Development
-Training
Spending that can change from year to year is known as
Discretionary Spending
What is the goal for a government when they impose a tariff on imported goods?
It protects domestic business. People are more likely to purchase American made products, because the price should be more competitive.
What characteristic of being an entrepreneur could be seen as both a benefit and a drawback?
Financial Risk
List 2 examples of public needs that are funded by the government with taxes:
Examples include:
Public Safety
Education
Infrastructure (Roads and Bridges)
List 2 negative externalities when it comes to regulation:
Examples include:
-Pollution
-Highway traffic
-New infrastructure
-Loud music/noises in public places
Income that is excluded from being taxed is called a(n)
Exemption
Which type of tax is taken out of each paycheck, and includes Medicare and social security taxes?
(HINT: I am not looking for direct/indirect or regressive/progressive/proportional)
PAYROLL
What are the 5 steps you need to take when starting a new business? List them in order.
1. Identify an opportunity
2. Create a business plan
3. Finance the business
4. File the right paperwork
5. Open your business
The government spends money in targeted ways with the goal of (name 2 goals)
Examples include:
-Encouraging economic stability
-Reducing unemployment
-Increasing production
-Encouraging competition
List the 3 tools of the federal reserve
Open market operations
interest rate changes
reserve requirement changes