California Prentice Hall Economics - Principles in Action Chapters 14, 17, 18
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| 411167407 | tax | a required payment to a local, state, or national government; the primary way in which a government collects money; gives the government the money it needs to operate | 1 | |
| 411167408 | revenue | income received by a government from taxes and nontax sources; pays for government-provided goods and services such as education and national defense | 2 | |
| 411167409 | tax base | income, property, good, or service that is subject to a tax | 3 | |
| 411167410 | individual income tax | a tax on a person's good or service being sold | 4 | |
| 411167411 | sales tax | a tax on the dollar value of a good or service being sold | 5 | |
| 411167412 | property tax | a tax on the value of a property | 6 | |
| 411167413 | corporate income tax | a tax on the value of a company's profits | 7 | |
| 411167414 | proportional tax | a tax for which the percentage of income paid in taxes remains the same for all income levels; income tax is separate from fluctuating income | 8 | |
| 411167415 | progressive tax | a tax on which the percentage of income paid in taxes increases as income increases; example: federal income tax in the United States | 9 | |
| 411167416 | regressive tax | a tax for which the percentage of income paid in taxes decreases as income increases; example: sales tax | 10 | |
| 411167417 | incidence of tax | the final burden of a tax | 11 | |
| 411167418 | withholding | taking tax payments out of an employee's pay before he or she receives it | 12 | |
| 411167419 | tax return | form used to file income tax; completed by an employer | 13 | |
| 411167420 | taxable income | income on which tax must be paid | 14 | |
| 411167421 | personal exemption | set amount that you subtract from your gross income for yourself, your spouse, and any dependents | 15 | |
| 411167422 | FICA (Federal Insurance Contributions Act) | taxes that fund Social Security and Medicare | 16 | |
| 411167423 | Social Security | old-age, survivors, and disability insurance; originally established to ease the hardships of the Great Depression | 17 | |
| 411167424 | Medicare | a national health insurance program that helps pay for health care for people over the age of 65 or certain disabilities | 18 | |
| 411167425 | estate tax | a tax on the estate, or total value of the money and property, of a person who has died | 19 | |
| 411167426 | gift tax | a tax on money or property that one living person gives to another | 20 | |
| 411167427 | tariff | a tax on imported goods; protects American farmers and industries from foreign competitors | 21 | |
| 411167428 | tax incentive | the use of taxation to encourage or discourage behavior; example: sin tax discourages people from buying and using tobacco and alcohol | 22 | |
| 411167429 | mandatory spending | spending on certain programs, such as Social Security and Medicare, that is mandated, or required, by existing law | 23 | |
| 411167430 | discretionary spending | spending category about which government planners can make choices, such as defense and education | 24 | |
| 411167431 | entitlements | social welfare program that people are "entitled to" if they meet certain eligibility requirements, such as being at a certain income level or age | 25 | |
| 411167432 | Medicaid | entitlement program that benefits low-income families, some people with disabilities, and elderly people in nursing homes; largest source of funds for health-related services for US' poorest people | 26 | |
| 411167433 | operating budget | budget for day-to-day expenses; example: salaries for state employees | 27 | |
| 411167434 | capital budget | budget for major capital, or investment, expenditures; example: bridge or buildings | 28 | |
| 411167435 | balancing budget | budget in which revenues are equal to spending | 29 | |
| 411167436 | tax exempt | not subject to taxes | 30 | |
| 411167437 | real property | physical property such as land and buildings | 31 | |
| 411167438 | personal property | possessions such as jewelry, furniture, and boats | 32 | |
| 411167439 | tax assessor | an official who determines the value of a property | 33 | |
| 411167440 | absolute advantage | the ability to produce more of a given product using a given amount of resources | 34 | |
| 411167441 | comparative advantage | the ability to produce a product most efficiently given all the other products that could be produced; the nation with the lower opportunity cost in producing a certain good should specialize in producing that good | 35 | |
| 411167442 | law of comparative advantage | the idea that a nation is better off when it produces goods and services for which it has a competitive advantage | 36 | |
| 411167443 | export | a good that is sent to another country for sale | 37 | |
| 411167444 | import | a good that is brought in from another country for purchase | 38 | |
| 411167445 | trade barrier | a means of preventing a foreign product or service from freely entering a nation's territory | 39 | |
| 411167446 | import quota | a limit on the amount of a good that can be imported | 40 | |
| 411167447 | voluntary export restraint | a self-imposed limitation on the number of products shipped to a particular country | 41 | |
| 411167448 | customs duty | a tax on certain items purchased abroad | 42 | |
| 411167449 | trade wars | a cycle of increasing trade restrictions | 43 | |
| 411167450 | protectionism | the use of trade barriers to protect a nation's industries from foreign competition | 44 | |
| 411167451 | infant industry | a new industry from the competition of mature rivals; "grows up" when it acquires the ability to produce goods efficiently and at a competitive price | 45 | |
| 411167452 | international free trade agreement | agreement from cooperation between at least two countries to reduce trade barriers and tariffs and to trade with each other | 46 | |
| 411167453 | World Trade Organization | a worldwide organization whose goal is freer global trade and lower tariffs | 47 | |
| 411167454 | European Union | a regional trade organization made up of European nations | 48 | |
| 411167455 | euro | a single currency that replaces individual currencies among members of the European Union | 49 | |
| 411167456 | NAFTA | agreement that will eliminate all tariffs and other trade barriers between Canada, Mexico, and the US | 50 | |
| 411167457 | exchange rate | the value of a foreign nation's currency in terms of the home nation's currency | 51 | |
| 411167458 | appreciation | an increase in the value of a currency; currency becomes "stronger" and foreign products will be less expensive in the US to purchase imported goods | 52 | |
| 411167459 | depreciation | a decrease in the value of a currency; currency becomes "weaker" and a nation's products become cheaper for other nations to purchase | 53 | |
| 411167460 | foreign exchange rate | the banks and other financial institutions that facilitate the buying and selling of foreign currencies | 54 | |
| 411167461 | fixed exchange-rate system | a currency system in which governments try to keep the values of their currencies constant against one another | 55 | |
| 411167462 | flexible exchange-rate system | a currency system that allows the exchange rate to be determined by supply and demand | 56 | |
| 411167463 | trade surplus | the result of a nation exporting more than it imports | 57 | |
| 411167464 | trade deficit | the result of a nation importing more than it exports | 58 | |
| 411167465 | balance of trade | the relationship between a nation's imports and its exports | 59 | |
| 411167466 | development | the process by which the nation improves the economic, political, and social well-being of its people | 60 | |
| 411167467 | developed nation | a nation with a higher average level of material well-being | 61 | |
| 411167468 | less developed country | a nation with a low level of material well-being | 62 | |
| 411167469 | per capita GDP | a nation's gross domestic product divided by its total population | 63 | |
| 411167470 | industrialization | the extensive organization of an economy for the purpose of manufacture | 64 | |
| 411167471 | subsistence agriculture | level of farming in which a person raises only enough food to feed his or her family | 65 | |
| 411167472 | literacy rate | the proportion of the population over the age of 15 that can read and write | 66 | |
| 411167473 | life expectancy | the average expected life span of an individual | 67 | |
| 411167474 | infant mortality rate | the number of deaths that occur in the first year of life per 1,000 live births | 68 | |
| 411167475 | infrastructure | the services and facilities necessary for an economy to function; a characteristic of a developed nation | 69 | |
| 411167476 | newly industrialized countries | a less developed country that has shown significant improvement in the measures of development | 70 | |
| 411167477 | population growth rate | the increase in a country's population in a given year, expressed as a percentage of a population figure at the start of the year | 71 | |
| 411167478 | natural rate of population increase | the difference between the birth rate and the death rate | 72 | |
| 411167479 | arable | suitable for producing crops; defines land | 73 | |
| 411167480 | malnutrition | inadequate nutrition | 74 | |
| 411167481 | internal financing | financing derived from the savings of a country's citizens | 75 | |
| 411167482 | foreign investment | investment originating from other countries | 76 | |
| 411167483 | foreign direct investment | the establishment of an enterprise by a foreigner | 77 | |
| 411167484 | foreign portfolio investment | the entry of funds into a country when foreigners make purchases in the country's stock and bond markets | 78 | |
| 411167485 | World Bank | the largest provider of development assistance | 79 | |
| 411167486 | United Nations Development Program | United Nations' program dedicated to the elimination of poverty through development | 80 | |
| 411167487 | International Monetary Fund (IMF) | organization formed to stabilize international exchange rates and facilitate development | 81 | |
| 411167488 | debt rescheduling | lengthening the time of debt repayment and forgiving, or dismissing, part of the loan | 82 | |
| 411167489 | stabilization program | an agreement between a debtor nation and the IMF in which the nation agrees to revise its economic policy | 83 | |
| 411167490 | privatization | the sale or transfer of state-owned businesses to individuals | 84 | |
| 411167491 | work ethic | system of values that gives central importance to work | 85 | |
| 411167492 | glasnost | a policy of political "openness" introduced into the Soviet Union in the late 1980s | 86 | |
| 411167493 | perestroika | Soviet leader Gorbachev's plan for economic restructuring | 87 | |
| 411167494 | light industry | the production of small consumer goods | 88 | |
| 411167495 | special economic zones | designated regions in China where foreign investment is encouraged, business can make most of their own investment and production decisions, and foreign companies are allowed to operate | 89 |
