Glossary Terms:

Who Pays for City Hall?

Glossary terms from:


Any activity or organization that produces or exchanges goods or services for a profit.


A written order to a financial institution directing the financial institution to pay a stated amount of money, as instructed, from the customer's account.


The study of how people, firms and societies choose to allocate scarce resources with alternative uses.


Tangible objects that satisfy economic wants.


Payments earned by households for selling or renting their productive resources. May include salaries, wages, interest and dividends.

Income Tax

Payments made by individuals and corporations to the federal government (and to some state and local governments) based on income received (both earned and unearned).


Anything that is generally accepted as final payment for goods and services; serves as a medium of exchange, a store of value and a standard of value. Characteristics of money are portability, stability in value, uniformity, durability and acceptance.

Sales Tax

Tax in the form of a percent of the cost of a good or service; paid to local and state governments when goods and services are purchased.


Activities performed by people, firms or government agencies to satisfy economic wants.


The amount of a good or service that producers are willing and able to offer for sale at each possible price during a given period of time. Normally, as the price of a good or service rises (or falls), the quantity supplied of the good or service rises (or falls).


Compulsory payments to governments by households and businesses.