FLVS Economic Module 2 my notes
1. prudent: use caution and good sense in decision making
2. utility: level of satisfaction a need or want provides
3. "live within your means": spending no more than the amount of money
earned 4. Law of Diminishing Marginal Utility: each additional unit consumed
gives less
satisfaction, or utility
5. insurance: paying a company to protect an assets
6. Summary of needs and wants: When making purchasing decisions, be sure
to ask yourself whether what you want to purchase is a want or a need and
whether there is a cheaper alternative. A budget helps you live within your
means and plan for expenses. When making a decision, keep in mind that more
is not always better. The Law of Diminishing Marginal Utility shows that there
can be too much of a good thing. Knowledge of your choices, given available
resources, can help you lead a less stressful, financially secure, and productive
life.
7. Tax: a required payment to a local, state, or national government
8. Why do we pay taxes?: Pay for public goods, police, roads, schools, etc.
9. What are the two types of taxes?: - Direct and
- Indirect
10. What is indirect tax?: one that can be passed on to another person or group
by the person or business that owes it
11. What is direct tax?: one that the taxpayer pays directly to the government
and these taxes cannot be shifted to any other person or group.
12. Examples of direct taxes: - income tax
- corporate income tax
- "death" tax Annual
- Annual property tax
13. Examples of indirect taxes?: - sales taxes
- gasoline taxes
- 911 services fee
- taxes on sale of proplerty
14. withholding: keeping a portion of wages in anticipation of taxes owed
15. IRS: Government Agency who is responsible for collecting taxes.
16. Progressivity: Tells you how does the tax rate rise, lower, or stay the same
as your income rises ?
1. prudent: use caution and good sense in decision making
2. utility: level of satisfaction a need or want provides
3. "live within your means": spending no more than the amount of money
earned 4. Law of Diminishing Marginal Utility: each additional unit consumed
gives less
satisfaction, or utility
5. insurance: paying a company to protect an assets
6. Summary of needs and wants: When making purchasing decisions, be sure
to ask yourself whether what you want to purchase is a want or a need and
whether there is a cheaper alternative. A budget helps you live within your
means and plan for expenses. When making a decision, keep in mind that more
is not always better. The Law of Diminishing Marginal Utility shows that there
can be too much of a good thing. Knowledge of your choices, given available
resources, can help you lead a less stressful, financially secure, and productive
life.
7. Tax: a required payment to a local, state, or national government
8. Why do we pay taxes?: Pay for public goods, police, roads, schools, etc.
9. What are the two types of taxes?: - Direct and
- Indirect
10. What is indirect tax?: one that can be passed on to another person or group
by the person or business that owes it
11. What is direct tax?: one that the taxpayer pays directly to the government
and these taxes cannot be shifted to any other person or group.
12. Examples of direct taxes: - income tax
- corporate income tax
- "death" tax Annual
- Annual property tax
13. Examples of indirect taxes?: - sales taxes
- gasoline taxes
- 911 services fee
- taxes on sale of proplerty
14. withholding: keeping a portion of wages in anticipation of taxes owed
15. IRS: Government Agency who is responsible for collecting taxes.
16. Progressivity: Tells you how does the tax rate rise, lower, or stay the same
as your income rises ?
