Learning effect: Education increases productivity and results in higher wages
Screening Effect: Completion of college indicates that person is intelligent and hard-working
Contingent Employment: Temporary or part-time jobs
Mediation: Settlement technique, mediator tries to find a solution
Arbitration: A neutral 3rd party reviews the case
Frictional unemployment: When people take time to find a job.
Seasonal: When industries slow or shut down for a season (Golf, life guard)
Structural: When worker’s skills do not match the jobs that are available
Cyclical: Unemployment that rises during economic downturns, and falls when economy improves
Full employment: When no cyclical employment exists
Tax: required payment to a local, state, or national government. Primary way govt collects money
Revenue: Income received by a govt from taxes and nontax sources
Tax Base: Income, property, good, or service that is subject to tax.
Individual income tax: A person’s earnings
Sales tax: Dollar value of a good or service being sold
Property tax: Value of a property
Coporate income tax: value of a company’s profits
Proportional Tax: Tax that remains the same for all income levels
Progressive tax: Tax which increases as income increases
Regressive tax: Tax which decreases as income increases
Personal exemptions: amounts you subtract from your gross income
Tax return: form used to file income taxes
Excise tax: Tax on sale or manufacture of a good
Estate tax: Tax on an estats or total value of money and property of a person who has died
Tax incentive: Use of taxation to encourage or discourage behavior
Entitlement: Social welfare programs people are entitled to if they meet certain eligibility requirements(age)
Market failure: Situation in which the market does not distribute resources efficiently.
Discretionary spending: Spending in which govt can make choices
In-kind benefit: Goods or services provided for free or at greatly reduced prices
Trade deficit: result of a country importing more than it exports
Sales tax helps contribute to Sate govts, as well as income tax. Local govts run on property taxes