Economics

Question 1

loss

Answer 1

-when the amount of money a person or company spends is more than they receive or take in

Question 2

profit

Answer 2

-the positive gain from an investment or business after subtracting expenses

Question 3

taxes

Answer 3

-the money that the government collects from individuals and businesses to pay for public goods and services

Question 4

good

Answer 4

-something you can feel or any kind of merchandise

Question 5

supply

Answer 5

-the amount of something available for use

Question 6

demand

Answer 6

-how much of a product or service is desired by buyers

Question 7

barter

Answer 7

-to trade

Question 8

scarcity

Answer 8

-there is a limited supply of something

Question 9

service

Answer 9

-any kind of work performed for others

Question 10

economics

Answer 10

-the study of making, buying, and selling of goods and services

Question 11

producer

Answer 11

-anyone who makes or grows a good or performs a service

Question 12

consumer

Answer 12

-anyone who buys a good or service

Question 13

specialization

Answer 13

-when an individual or company does one part of a task and relies on others to complete the other part of the task

Question 14

entrepreneur

Answer 14

-a person who comes up with a product or service or a better way to produce one

Question 15

-opportunity cost

Answer 15

-the process of choosing one good or service over another

Question 16

interdependence

Answer 16

-when people depend on one another

Question 17

free enterprise

Answer 17

-when companies compete with one another to get the most customers

Question 18

interest

Answer 18

-the payment made for the use of borrowed money

Question 19

national debt

Answer 19

-the interest plus the total amount of money that the government has borrowed

Question 20

revenue

Answer 20

-money that is brought in after any given profit, not concerning deductions

Question 21

fees

Answer 21

-payments charged by governments for various licenses

Question 22

fine

Answer 22

-money charged as a penalty for breaking certain laws

Question 23

bond

Answer 23

-a certificate that states that the government has borrowed a certain sum of money from the owner of the bondm

Question 24

maturity date

Answer 24

-the date on which the money owed, along with any interest, becomes due

Question 25

income tax

Answer 25

-taxes on earnings

Question 26

progressive tax

Answer 26

-a tax that takes a larger percentage of income from higher-income groups than from lower-income groups

Question 27

regressive tax

Answer 27

-a tax that takes a larger percentage of income from low-income groups than from high-income groups

Question 28

property tax

Answer 28

-a tax on the value of the property owned by a person or business

Question 29

tariff

Answer 29

-taxes on imported goods

Question 30

excise tax

Answer 30

-tax collected on luxury goods and services

Question 31

Which agency collects taxes for the federal government?

Answer 31

the Internal Revenue Service (IRS)

Question 32

Why are budgets important?

Answer 32

They are written to plan for and pay for the government's operations, usually for one year.

Question 33

Which agency helps the President manage the budget?

Answer 33

the Office of Management and Budget (OMB)

Question 34

Why is an audit important?

Answer 34

They monitor how money is being used by the government to ensure that funds are spent according to law.

Question 35

IRS

Answer 35

-agency of the Treasury Department that handles the federal collection of taxes

Question 36

U.S. Customs Service

Answer 36

-federal agency in charge of handling tariffs on imported goods

Question 37

comptroller

Answer 37

-state or local officials responsible for ensuring public funds are spent as authorized

Question 38

What federal official is responsible for planning the budget?

Answer 38

president

Question 39

OMB

Answer 39

-federal agency that helps prepare the federal budget

Question 40

What is the federal body that turns the federal budget into law?

Answer 40

Congress

Question 41

balance budget

Answer 41

-when government revenue equals government expenditures (the amount of money the government collects equals the amount of money is spends)

Question 42

surplus

Answer 42

-when government collects more money than it spends

Question 43

deficit

Answer 43

-when the government spends more money than it collects

Question 44

audit

Answer 44

-a careful examination by trained accountants of every item of income and expenditure

Question 45

Sales Tax

Answer 45

-a percentage of the total price of everything in your shopping cart

Question 46

Excise Tax

Answer 46

-added to the price of certain items such as alcohol, airfare, gas, etc.

Question 47

Tariffs

Answer 47

-added to the price of many goods made in other countries

Question 48

Income Tax

Answer 48

-a percentage of the total amount of Sincome you have for the year

Question 49

Social Security Tax

Answer 49

-used to fund a retirement program for U.S. workers

Question 50

Medicare Tax

Answer 50

-used to fund healthcare programs for people age 65 and older

Question 51

Property Tax

Answer 51

-a tax on the value of land and property you own

Question 52

Estate Tax

Answer 52

-a tax on what you own when you die, if it is worth a very high amount