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8 Cards in this Set
- Front
- Back
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Mercantilism
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Mercantilism, also called "commercialism,” is a system in which a country attempts to amass wealth through trade with other countries, exporting more than it imports and increasing stores of gold and precious metals. It is often considered an outdated system.
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progressive tax rate
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A progressive tax takes a larger percentage of income from high-income groups than from low-income groups and is based on the concept of ability to pay. A progressive tax system might, for example, tax low-income taxpayers at 10 percent, middle-income taxpayers at 15 percent and high-income taxpayers at 30 percent.
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flat tax rate
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DEFINITION of 'Flat Tax' A system that applies the same tax rate to every taxpayer regardless of income bracket. A flat tax applies the same tax rate to all taxpayers, with no deductions or exemptions allowed.
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Diversification
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In finance, diversification means reducing non-systematic risk by investing in a variety of assets.
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Supply
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In economics, supply refers to the amount of a product that producers and firms are willing to sell at a given price when all other factors being held constant. Usually, supply is plotted as a supply curve showing the relationship of price to the amount of product businesses are willing to sell.
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Demand
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DEFINITION of 'Demand' An economic principle that describes a consumer's desire and willingness to pay a price for a specific good or service. Holding all other factors constant, the price of a good or service increases as its demand increases and vice versa
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Compound Interest
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Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of interest to the principal is called compounding.
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Positive And Negative Incentive
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Economic Incentives are offered to influence our behavior.
Positive economic incentives reward people financially for making certain choices and behaving in a certain way. Negative economic incentives punish people financially for making certain choices and behaving in a certain way. |
