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33 Cards in this Set

  • Front
  • Back
Income not spent on current consumption
Content of living that they earnestly desire and seek to attain, maintain if attained, preserve if threatened and regain if lost.
Standard of Living
Raises nominal interest rates and lowers real interest rates
Income exempt from current income taxes
Predicting, estimating or calculating in advance
A decline in business activity or downturn in the economy
A steady rise in the general level of prices resulting in a declining purchasing power of money
The tax implications of an economic decision are affected by one's
Marginal Tax Rate
The price of money is represented by its
Interest Rate
The rate that banks charge each other for overnight deposits
Federal Funds Rate
Compensation for employment that is not in the form of wages, salaries, commissions, or other cash payment
Employee Benefit
A decline in business activity and a downturn in the economy
The cost of decision measured in terms of the most valuable alternative that is foregone or given up
Opportunity Cost
The ability of a good or service to satisfy a human want or need
Assets purchased with the goal of providing additional income from the asset itself.
The phase of the economic cycle where production is high, unemployment is low and retail sales are high
A measure of the goods and services that one's income will buy
Purchasing Power
The value of all goods and services produced by workers and capital located in the United States
Gross Domestic Product
Government approved, employer-sponsored accounts which are paid with pre- tax dollars
Flexible Spending Accounts
The amount placed into a savings account or investment
Describes a declining economy
A wavelike pattern or rising and falling economic activity that occurs again and again over time.
Economic Growth
Falling prices in the marketplace
A key to calculating the time value of money is the
Assumed Rate of Return
The extra satisfaction derived from having one more incremental unit of a product or service
Marginal Utility
The business cycle and the economic cycle are
The same thing
The best indicator of where the economy is headed over the next year or so
Index of leading economic indicators
Income adjusted for increases in the prices of goods and services
Real Income
When making economic decisions, the tax impacts are best evaluated by applying one's
Marginal Tax Rate
Income exempt from current taxation but for which taxes will likely be paid at a later date
To compare money to be received in different time periods or in different cash-flow patterns over time you must perform ____________________ value of money calculations.
What is the best measure of changes in your cost of living over the next few years
Your personal inflation rate
A government-approved plan that allows payment of selected employee-paid expenses to be paid with pre-tax dollars is a
Flexible Spending Arrangement