Economics: Unit 2 Study Guide – Flashcards
Flashcard maker : Daniel Hardy
Franchise
Buying into an entity, brand equity and knowledge
Sole proprietorship
one person owns the whole company 6% revenue
Cooperative
shared ownership of a company, not run for profit
Corporation
own living entity lives on after founder dies
Partnership
When more then one person shares the liability of a company
Monopoly
complete control over one resource
Monopolistic Competition
Slightly differentieated products, buyers and sellers
Perfect Competition
Selling identical products
Oligopoly
3 or 4 firms control 70% of the market
Unlimited liability
comes after personal property to pay off buisness debt.
Invest (on a loan)
cost of money
Savings account (different types)
no immediate access to money
Credit Card
loan plus interest
Debit Card
your money
checking account
same as cash
Bonds
loan made to a corporation or the gov
Stocks
ownership in a corporation
Dividend
Your share of profit in a stock
New York Stock Exchange
Most well known stocks, located on wall St New York, Blue Chip Stocks
Bear Market
going down
Bull Market
going up
Dow Jones
Dashboard of how the stock market is doing overall
NASDAQ
technical Stocks
Progressive Tax
more you make the more they take
Proportional/Flat Tax
everybody pays the same
Regressive Tax
sales taxes, goes down based on income more you make the less they take
Excise/Sin Tax
A tax put on influential choices; drinking cigarettes
Tax Avoidance
taking advantage of tax law to pay as little as possible
Tax Evasion
illegal; cheating
Sources of Revenue for the Gov
Income Tax
Social Security/Medicare (AKA FICA)
Corporate Income Taxes
Social Security/Medicare (AKA FICA)
Corporate Income Taxes
What programs the gov spends tax $ on
Military gets the most
fastest growing is entitlement
fastest growing is entitlement
Scarcity
limited quantity of resources or good to meet unlimited wants
Opportunity Costs
what you give up in order for something else
Economics
the study of choices
Ways to keep credit score high
pay bills, get credit, get a good job
Way the gov uses taxes
education, roads, military
3 types of taxes state gov collects
property
state income
sales
state income
sales
Adam smith claims the free market is regulated by…
If everyone acts out of best interest the economy will regulate itself. (Wealth of Nations)
People trade because…
In order to get what they want
