Economics (Practical Personal Financial info (Deductions (Voluntary…
Practical Personal Financial info
Gross pay is the amount of money your employee receive before any taxes and deductions are taken out
Is the amount one revives after taxes and deductions have been withheld during pay period.
Tax levied by United States Internal Revenue Services(IRS) on the annual earning of induvudual,copeartions, trusts,or other legal entities
Colorado's state income tax rate 4.63% of the federal taxable income,regardless of your income level.
The federal insurance contributions act is the federal law that requires you to withhold three separate taxes from the wages you pay your employees.
A person credit score calculated with software Fair Issac Corporation.(FICO)
Deductions of amount paid for item such as insurance plan, and sometimes unions
The employer is required by federal and/or state law to deduct certain amount of the employee's pay and sent into an institutions or a goverment agency.
Payday loans work
a small amount of money lent at a really high interest rate on the agreement to get paid back when the receiver receives his/her paycheck.
Pay day loans are risky because of the high interest rate, really costly, and later into the future can lead into bigger finical problems.
Mortgage remains the same through the term of loan.
Sub prime, adjustable rate mortgage
Loan that is meant to offered to borrowers with impractical credit records
Price Theory: supply and demand
The law of demand states that as prices rise,people are willing and are able to buy.
20% of consumers will buy 80% of a product.
At higher prices people choose to produce more, at lower prices,people choose to produce less
When the demand equals the supply that was given.
Where there is not enough demand for the supply given. Excess products
Where there is not enough supply for the demand is given. Not enough products
Changes in income
more income = more spending
change in production
more people = more demand
changes in price
demand for lower prices related goods
changes in consumer info
more information passed down from consumers
changes in taste and preferences
new tastes= low sell on old products
If price rises save items to sell them on higher value
If prices drops sell your items to make the most
Better techno= more faster production and more efficient
Number of products
How many store are producing the product
cost of the products
Price elasticity of demand
If the products price changes and it changes the demand drastically,it has elastic demand. If a product price changes and it barely affects the demand.
Government price control
Government imposed price control that prevents the price from rising too high. (Protects consumers)
It is a government imposed price control that prevents the price from going too low.(protects sellers)
Measuring the health of the economy
system of production,consumption,and distribution of good and services in a particular geographic region.
Gross domestic product total market value for all goods and services produced in a country over a year.
Not included on GDP
Or used goods
Equation for GDP
Included on GDP
Increase in price of good,services over a period of time.
Consumer price index
Measures the changes in price paid by consumers for good and services.
No.of unemployed people/Labor force
The percentage of people who are activity looking for jobs but unable to find it.
Types of Unemployment
Between college and work force,fired or looking for jobs
Some jobs that we don't need or have a demand for jobs.
When a lot of people losses their jobs.
Sectors of the economy
deals with harvesting raw material (farming,fishing,mining)
Deals with processing raw material accursed through primary activities(processing foods)
Deals with activities forces on moving,selling and handling the products made in primary and secondary activities. (retail stores)
all illegal production of goods and services.(betting on sports)
Recession and responses to Recession
series of cycle of economic expansion and contraction.
real GDP in decline( 2 consecutive Quaters= recession)
Definitions of recession
period of general economic decline
Changes in government spending and taxes
increase spending+ lowering taxes
Decrease spending = rising taxes
changes magnified effect over all economy
money owned or due
amount of money that is too small
Mortage backed security
Pros- Banks gain money lot faster and were able to give out loans
cons- MBs weren't checked because of greed of banks for money. MBS filled with bad loans
Credit default swap
buying insurance for something. Monthly payments
Definition of recession
decline gdp over a year
keynes vs hayek
government action makes recession worst
market profits if there is no government involvment
investment must come from saving
total spending in economic effect inflation
aggressive policy/fiscal policy
with out government recession wouldn't end
Paradox of thrift
contractionary vs expansionary
rising gdp= expansionary
decreasing gdp = contractionary
fait money vs gold standards
no real value
amount of money of a country by how much a gold a country has
controls supply of money
7 members of board governers
independent from politics
interest rate banks need to pay to require money from from fed
low DR = expansionary
High DR= contractionary
Lower DR = more borring thus more spending
Open market operation
buying/selling treasure bonds
government take money
Design of different ways in which choices can be presented to consumers, and the impact of the presentations on consumers decision making.
Giving people complete freedom in choice but manipulating them to make certain choices.
To steer people toward certain choices by behavioral science but still allowing to make choices.
Basic Economics/Economic thinking
, is the study of economics at individual,group or a company.
Production Possibility Frontiers
Often used to graph and analyze the choices and trade offs that the people make
is the graph that shows alternative ways to use the productive resources.
Factors of productions
Resources used to make all goods and services,are called factors of productions
Person who brings all factors of productions together
natural resources (gift) before changed by humans efforts .
tools of production,goods used to produce other goods/services.
Human effort used to produce goods and services.
What motivates you to behave in certain way,while preference are your need, and what you desire.
rewards people for making certain choices or or behaving on certain way.
penalize people for making certain choices or behaving on certain way
the result of unintended negative consequences due to action people take or receive
Always a cost to every opportunity
Diminishing marginal utility
low of economics stating that as a person increases consumption of a product while keeping consumption of other products constant.
Is an examination of the additional benefits of an activity compared to additional cost incurred by the same activity.
forces us all to make choices by making us decide with options are most important.
is the study of economics as a whole nation
is the study of economics at individual,group or a company