Economics-Chapter 18 – Flashcards
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Full Employment
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A situation in which any person who wants and is able to work should be able to find a job
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Income Tax
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A tax on what individuals and businesses earn. (Progressive)
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Sales Tax
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Charges on purchases of goods and services, usually a percentage of that price.
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National Income Accounting
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The tracking by the federal government of all the income and spending happening in the overall economy.
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Economic Growth
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An increase in the production of goods and services, which may provide citizens with a higher standard of living.
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Deflation
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A decrease in the overall price level
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Revenue
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Income
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Proportional Tax
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A tax system whereby each taxpayer is required to pay the same proportion or percentage of their income as taxes
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Regressive Tax
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A tax that takes a higher percentage from the income of a person who has a low income than from a person who has a higher income
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Progressive Tax
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A tax system where by the percentage of a person's income that he or she pays in taxes increases with the more income he or she has
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Direct Tax
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A tax that directly affects the person against whom it is levied
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Indirect Tax
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A tax paid by someone other than the person against whom it is charged
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Excise Tax
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A charge on certain goods, such as alcoholic beverages, gasoline, and tobacco.
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Bond
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A certificate that people buy from the government which agrees to pay back the cost of the bond, plus interest, after a set period of time
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Lottery
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State sponsored game in which player buy tickets hoping to win a cash prize
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Budget Surplus
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When government spends less than the tax revenues it receives.
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Balanced Budget
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When a government's spending equals the tax revenues it receives.
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Budget Deficit
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When a government spends more than the tax revenues it receives.
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Entitlement Programs
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Benefits paid by the government to people who are law entitled to them
