Applied Ec
Terms
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- house
- out right ownership owner does all maitenance
- local taxes
- philly wage tax; depends on whether you are a resident or not in the city you work. city charges 7% sales tax to make for the money they loose
- social security
- for old people; survivors, and disability, insurance and hospitalization insurance
- amortization period
- 30 years; fixed,
- excise tax
- regressive, tax paid by consumer on goods (on cigarettes and alcohol)
- charge cards
- diners card, american express; pay at end of month; yearly membership fee; take higher % of bill to make money
- savings and loan associations
- created to loan money; Federal savings and loans Insurance Corp
- co-op
- same as a condo but residents own the building; elect a board that makes all the decisions like what to do with money
- macroeconomics
- study of the economy as a whole (global)
- capital
- resources made and used by people to produce goods and services (doesn't include money) (tools, machines, you know)
- withholding taxes
- federal income tax; state income tax, social secuirty, unemployment, disibility
- grace period
- time you have before the bank charges you interest on your account. lasts 25 days.if you exceed grace period interest will be charged; grace period comes back if account balance =0
- Production assumption
- resources are fixed, all resources are fully employed, technology is fixed, only two things can be produced
- Gross Domestic Product (GDP)
- the sum of all goods/services produced in a year
- customs duties
- federal, proportional, tax on imports, paid by importer
- credit unions
- not trying to make money interest rates are higher, not 1 owner
- mill
- .001
- Law of supply
- producers are willing to sell more of a good/service at a higher price
- tax rate
- proportion of each $ in the tax base that must be paid as taxes
- property tax
- varies state to state, proportional, portion of the value of the property
- inheritance
- state tax, paid by those who inherit property only
- tax base
- the # of $ to be taxed
- income tax
- state and federal income tax, progressive, major source of federal revenue
- regressive tax
- same tax on money spent (sales tax)--income does not have to do with it
- normative economics
- study of how people think the economy should be ( based on personal opinions so there's no right or wrong)
- gross income
- total amount of money before taxes
- commercial banks
- Federal chartered like commerce, wachovia; state chartered like abington and Harleysville
- progressive tax
- rich pay a higher percdentage
- credit cards
- loan; charge interest; bill at end of month; bank issued, mastercard, visa
- debit card
- check card; taken directly out of your account
- tax authority
- elected group that has the power to tax
- condo
- like apartments except you own what you live but not common areas, pay a condo fee used to fix common areas
- medicare
- created duting the great society, must be 65 or older, no max contributions, benefits: hospital insurance, supplimentary medical insurance, partial perscription drug coverage
- reason government collects taxes
- pay for government activities; taxes change consumption decisions; redistributes income; manages economy
- conversion
- owner breaks it into sections and rents them out under 3 stories
- trade-offs
- choosing less of one thing to get more of another
- net income
- the amount of money after taxes
- land
- more than just the earth's surface--includes natural resources: oil, trees, coal, etc.
- economic principles
- people's choices influence price and economy
- level life insurance
- insurance plan in which the user pays the same premium every month
- supply
- quantity of goods or services producers are willing and able to sell at specific prices
- scarcity
- shortage of resources; effects every person, society, business, gov't
- apartements
- high rise of anything more than 3 stories;
- fiat money
- the U.S. system money has value because the government says so.
- Production possibility curve
- demonstrates scarcity effects, production possibilities, graphically demonstrates opportunity cost of each choice (not a straight line because trade-offs are not equal)
- proportional tax
- same percent of income from every person
- microeconomics
- the study of how the economy changes on individual/small-scale levels
- positive economics
- study of how the economy really is
- demand deposit
- essentially a check, check system; most common in the world
- banks
- federal reserve require 20 % of deposits be kept in cash on hand at all times. loan out money.
- lease
- lease your property what landlord says goes
- representative money
- paper money backed by precious metals like gold standard
- Underwriter
- person who estimates the length of your life
- sales tax
- regressive
- garden
- 2-3 story group apartments
- fair credit billing act
- protect consumers from unfair billing practices and to provide a mechanism for adressing billing errors
- social insurance
- proportional tax up to 94,000. regressive after that. federal tax. covered by FICA
- minimum payment
- pay less for the month but you pay more interest so you wind up paying more
- commodity money
- money made of a valuable substance
- millage rate
- how property tax is calculated, township officials pull together # called mill
- high rise
- anything more than 3 story apartments