Glossary Terms:

Social Security Gains Two More Years

Glossary terms from:
http://www.econedlink.org/e31


Benefit

Monetary or non-monetary gain received because of an action taken or a decision made.

Budget

A spending-and-savings plan, based on estimated income and expenses for an individual or an organization, covering a specific time period.

Budget Deficit

Refers to national budgets; occurs when government spending is greater than government income in a given year. A yearly deficit adds to the public debt.

Budget Surplus

Refers to national budgets; occurs when government income is greater than government spending in a given year.

Check

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.

Debt

Money owed to someone else. Also the state or condition of owing money. Can be individual, corporate or government debt.

Federal Budget

The taxing and spending plan of the national government.

Income

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

Inflation

A rise in the general or average price level of all the goods and services produced in an economy. Can be caused by pressure from the demand side of the market (demand-pull inflation) or pressure from the supply side of the market (cost-push inflation).

Insurance

A practice or arrangement whereby a company provides a guarantee of compensation for specified forms of loss, damage, injury or death. People obtain such guarantees by buying insurance policies, for which they pay premiums. The process allows for the spreading out of risk over a pool of insurance policyholders, with the expectation that only a few policholders will actually experience losses for which claims must be made. Types of insurance include automobile, health, renter's, homeowner's, disability and life.

Interest

Money paid regularly, at a particular rate, for the use of borrowed money.

Medicare

A federal health-care program that pays for certain medical and hospital costs for people aged 65 and older (and for some people who are under the age of 65 and disabled). Part of Social Security.

Money

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.

National Debt

The total amount owed by the national government to those from whom it has borrowed to finance the accumulated difference between annual budget deficits and annual budget surpluses; also called public debt.

Revenue

The money a business receives from customers who buy its goods and services. Not to be confused with profit.

Save

To keep money for future use; to divert money from current spending to a savings account or another form of investment.

Short Run

A period of time long enough for existing firms to change some--but not all--of the resources they use.

Social Security

A federal system of old-age, survivors', disability and hospital care (Medicare) insurance which requires employers to withhold (or transfer) wages from employees' paychecks and deposit that money in designated accounts.

Surplus

The situation that results when the quantity supplied of a product exceeds the quantity demanded. Generally happens because the price of the product is above the market equilibrium price.

Unemployment

The number of people without jobs who are actively seeking work.

Work

Effort applied to achieve a purpose or result, often for pay; skills and knowledge put to use to get something done; employment at a job or in a position; occupation, profession, business, trade, craft, etc.

Workers

People employed to do work, producing goods and services.