Download RENAISSANCE – Took place in 16 th century Europe = ______ • A

RENAISSANCE – Took place in 16 th century Europe = _______ • A time period in Europe when a strong economic system developed • _______________: economy backed by gold and silver where government encourages exports and discourages imports through the use of tariffs • __________: goods coming into the country • __________: goods leaving the country because they were sold to another country • __________: tax on imports • ________ emerged that kept money for merchants from all over Europe. • Merchants began to create ________________________ or businesses in which a group of people invests together in order to reduce individual risk. What’s an institution?
· _______________________ _________________________
· _______________________ _________________________ ECONOMIC INSTITUTIONS • Consumers: people who _______ products • Laborers: people who __________ products • Labor _________: organizations who ________ the rights of workers –Set prices to protect wages –Shorter workdays –Paid vacations CREDIT AND DEBT • Creditor: person or company who _______ the money, good, or service. • Debtor: person or company who ___________ the money, good, or service. INFLATION AND DEFLATION • Inflation: ___________ in the cost of goods and services –Value of money decreases • Deflation: ____________ in the cost of goods and services –Value of money increases What determines the prices in a market? _________________________ • __________: how much of a good or service companies decide to produce –Influenced by the amount of profit to be made –Recent example: gas prices • __________: a household’s desire to buy a good or service –Influenced by the cost of the product –Example: consumers rushing to buy new house How can the government affect the economy? • _______________: government _______ to protect business and employees • _________: incentives for businesses to act like government wants • Competition: government provides certain __________ to ensure they are always available (ex: law enforcement) How much of a person’s income went to taxes in 1789?______ Today?______
FEDERAL TAXES • The U.S. federal government collects about _________ of the taxes in our economy. • The largest source of revenue for the federal government is the individual _____________. – When paying income taxes, an individual’s tax liability (how much he/she owes) is based on total income. –This is called a ___________ tax system. Federal Receipts Receipts: Money brought in • _________ Taxes: tax on the wages that a firm pays its workers. • Social Insurance Taxes: revenue from these taxes is earmarked to pay for Social Security and ____________. • Corporate Income Taxes: tax on the value of a corporation’s profits • __________ Taxes: taxes on specific goods like gasoline, cigarettes, and alcoholic beverages. Total Receipts for 2010: ___________________ Federal Spending Expense Category: • _____________________ • National ____________ • Net Interest • Income Security • _____________ • Health • Other Total Spending for 2010: ___________________ DEFICIT VS. SURPLUS • A budget ____________ occurs when there is an excess of government spending over government receipts. ­The government ________ from the public. • A budget ___________ occurs when government receipts are greater than government spending. ­The government ______ off outstanding debts. Do we have a budget surplus or deficit for 2010? _______ What is it? _______________ GROSS NATIONAL PRODUCT The _______ of production of goods and the supply of services in a given country, including business done by that country’s producers ______________. GROSS DOMESTIC PRODUCT The _______ of the production of goods and the supply of services in a given country, including business done by _______________________ producers within its boundaries Which one has a greater impact on your life, the GNP or GDP? ________ Why? _________________________________ Sum up the current state of the U.S. economy using the terms: debt, receipts, and Gross Domestic Product. _______________________ _______________________ _______________________ _______________________
STATE AND LOCAL GOVERNMENTS • State and local governments collect about ___________ of taxes paid. State and Local Receipts • ________ Taxes • ___________ Taxes • Individual _________ Taxes • Corporate Income Taxes • Other State and Local Spending • _____________ • Public Welfare • Highways • Other Other Types of Taxes –Capital gains tax – tax on profit released upon the sale of an asset (usually real estate) –_________ tax – tax on goods bought by someone –__________ – taxes on imports/exports on the movement of goods through a political border –Toll tax – tax for the use of roads/bridges to pay for those roads/bridges –___________ taxes – tax on the value of property owned (real estate) –Inheritance tax (estate tax) – tax on an estate of a person who dies and leaves money to someone Know Your Economics??
Across
3. a type of work done for payment
4. money available to borrow
7. resources found in the environment
that are used to satisfy a human need
9. a tax on imports
11. a tax on specific luxury goods
12. a product that is made and sold
13. a single buyer or seller of a product
Down
1. economy where there is only enough
food for the family
2. economy that produces food with
surplus
5. market that uses bartering
6. a tax on goods purchased by someone
8. money owed by one person to another
10. economy where anyone can enter any
area of business; also called free
market economy
14. a few companies control a product