mid term 2012 spring study guide by 4SmWQxJ


									Mid Term 2012 Study Guide

1.The situation in which some necessities have little value while some non-necessities have a much higher value is known

2.Manufactured goods needed to produce other goods and services are called

3.To arrive at an economic decision, a decision-making grid may be used to evaluate

4.Division of labor is a characteristic of

             5.      The study of economics is important because it enables us to

6.The dollar value of all final goods, services, and structures produced within a country’s borders in a single year is

7.A popular model used to illustrate the concept of opportunity cost is

8. .An economy at its production possibilities frontier is operating

9.Entrepreneurs are considered the driving force in an economy because they

10.Actions in one part of the country or world that have an economic impact on what happens elsewhere are examples of

11. The purpose of government in a command economy is to

12. An example of a market economy is

13.Which group of people ultimately determines the products that a free enterprise economy produces?

14..The United States can best be described as having what kind of economy

15.Who plays one of the most important roles in the free enterprise system by starting new businesses?

16.What are the characteristics of a traditional economy?

17..Define market economy

18.The minimum wage is an example of a federal law that supports which of the government’s 7 economic goals

19.The concept of voluntary exchange means

20..Which economic system can change direction quickly and drastically

21. What is the invisible barrier that hinders women and minorities from advancement up the corporate ladder

22. The authority to levy a federal income tax comes from

23.   The flat tax definition

            Medicare tax is 1.45 percent of income, with no limit on the amount of income taxed. This is an example of
            which type of tax?

24. What amount was deducted from this paycheck for Social Security and Medicare tax?

25. How much money was deducted from this person’s paycheck?

26. Ann earns $10,000 annually and pays a tax of $1,000. Jerome earns $60,000 during the same period and pays taxes of
           $20,000. The tax they both paid was a

27. FICA includes taxes to pay for

28. Under which type of tax do individuals with higher incomes pay a smaller percentage than do those with lower

                                    Tax Table for Single Individuals—2007
            If your taxable
            income is:
                                    But not                   The tax is:               of the amount
            Over...                 over...                                             over...
                              $0            $7,825        -----------            10%                    $0
                          $7,825           $31,850         $782.50      +        15%                $7,825
                         $31,850           $77,100       $4,386.25      +        25%               $31,850
                         $77,100         $160,850       $15,698.75      +        28%               $77,100
                        $160,850         $349,700       $39,148.75      +        33%              $160,850
                        $349,700        ------------   $101,469.25      +        35%              $349,700
                                                                            Source: Schedule X, IRS Individual Tax Table.
            29.   What type of tax does the tax table in the illustration represent?


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