1. Employment, Wages & Taxes

2. Macroeconomics The study of the economy as a whole Government decisions about the economy

3. Unemployment Calculate by number of people actively seeking a job who have been fired or laid off Do not count the retired or underemployed Underemployed-have a job but do not make enough money, level of job not up to education or qualifications Unemployment Insurance: You pay money out of your check in case you lose your job

4. Minimum Wage Minimum amount a business must pay you How does this hurt businesses? Should the government raise minimum wage? What may happen if they do?

5. Inflation & Deflation InflationDeflation Increase in the cost of goods and services over a period of time Examples? Prices fall Hurts businesses Consumer Price Index (CPI): compare average prices of goods and services from one year to the last

6. Types of Taxes Direct TaxIndirect Tax Taxes you pay from your salary/wages Income tax Tax on what you buy Sales tax-depends on the state, percent of tax on items you buy What has sales tax in N.J.? What doesn’t?

7. Types of Taxes Progressive TaxRegressive Tax The amount you pay increase by how much money you make Income tax-the tax you pay from your wages A tax that can hurt the poor It takes a higher percent from lower wage earners

8. Types of Taxes Corporate TaxExcise Tax Taxes that big businesses pay from their profits Tax on things you buy that are considered “sinful” Alcohol, etc

9. What does the government use our taxes for? 1.Public goods 2.Redistribute Income to help people

10. Types of Public Goods Merit GoodsDemerit Goods Provided by the government through you tax money that help the community Roads, libraries, museums People pay tax on them because they are seen as not good for society Alcohol, tobacco

11. Types of Taxes Tariff Tax on items coming into the country Imports

12. Redistribution of Income Social SecurityDisability Insurance Taken out of your pay Collect it after you retire People working now pay for those who are retired now Helps elderly and disabled Taken out of your pay In case you ever become disabled and can’t work

13. Redistribution of Income Welfare Unemployment Insurance Help the poor Taken out of your check Collect it if you lose your job People working now pay for those who are unemployed

14. Redistribution of Income MedicaidMedicare Health insurance for the Poor Health insurance for the retired/elderly Disabled