| A | B |
|---|
| progressive tax | Tax that is based on the ability of a person to pay - people who make more money pay a greater percentage. |
| regressive tax | Tax that is paid on an equal percentage b y everyone - can be unfair to those with less of a disposable income. |
| income tax | Tax that is based on the money one earns - this tax is usually progressive. |
| excise tax | Tax that is placed upon certain items such as gas, alcohol and cigarettes. |
| tariffs | Tax rate that is placed upon certain items as they are imported into the nation. |
| revenue | Economic term for the money that is received. |
| expenditures | economic term for the money that is spent. |
| deficits | Term describing the process of spending more money than is brought in as revenue. |
| balanced budget | Idea that a budget should never spend more money than it has received. |
| interest | Price paid to borrow someone's money. |
| collateral | Item of value that is promised in order to borrow a large sum of money. |
| stock market | Place where shares of corporations or mutual funds are sold on the open market. |
| mutual fund | Economic fund that combines the money of many investors and is operated by a professional manager who makes the investment decisions. |
| bonds | These are certificates issued to investors who loan their money to businesses or governments and are repaid with interest. |
| exports | Items which are traded out of the nation. |
| imports | Items which are traded into a nation. |
| balance of trade | Economic term describing the relationship between a nation's imports and exports. |
| trade deficit | Situation when a nation is importing more goods than it is exporting - this causes more money to leave the nation than enter the nation. |
| NAFTA | Free trade agreement made between the US, Canada and Mexico. |
| European Union | Group of European nations that have joined together in a free trade union. |
| UN | World Council that seeks to alleviate world problems. |
| Security Council | Part of the United Nations which oversees security of the world. |
