Economics
Exercise 1: Financial Terms/Vocabulary
1. Match each definition with the letter of one of the following:
a – form
b – exempt
c – depreciation
d – unauthorized
e – audit
f – tax dispute
g – disclosure
h – dividends
i – self-employment income
j – tax evasion
Top of Form
1. releasing your tax information to a third party: …………………
2. a process to check if what you declared is correct: ……………………
3. not paying taxes when one is required to do so: ……………………
4. not having to pay taxes: ……………………
5. the profits of a company that are distributed among shareholders: ……………………
6. illegal, not allowed: ……………………
7. money that you make working for yourself: ……………………
8. a document that you fill out: ……………………
9. the decrease in value, over time, of property or assets: ……………………
10. a disagreement about how much tax you have to pay: ……………………
Bottom of Form
Bottom of Form
2. Match each definition with the letter of one of the following:
a – deduction
b – itemized deduction
c – expenses
d – tax bracket
e – property tax
f – tax shelter
g – capital gains
h – garnishment
i – refund
j – tax liability
Top of Form
1. the amount of tax that you have to pay: ……………………
2. a list of deductions from taxable income: ……………………
3. money that you make from stocks, bonds, real estate, etc.: ……………………
4. in tax terms, the cost of maintaining property or generating income: ……………………
5. money that the government gives back to you when you pay too much in taxes, or have withheld too much from your salary: ……………………
6. when someone withholds your wages to pay off your debt to a third party: ……………………
7. an expense that you can subtract from your gross income: ……………………
8. a tax that has to be paid by owners of houses, etc.: ……………………
9. a financial arrangement which can reduce your tax liability: ……………………
10. a category of taxpayers, defined by how much money they make: ……………………
Bottom of Form
Exercise 2:
This exercise will help you differentiate between different types of finance-related jobs.
Choose the best response for each one.
Top of Form
1. A __________________________ is someone who buys and sells stock.
stockbroker
stock-seller
insurance broker
2. An insurance broker will help you find the best insurance __________________________ at the best price.
politics
policy
tax
3. A tax consultant is someone who can __________________________ you on how to pay less tax.
advise
advance
advocate
4. A tax-__________________________ (or “IRS auditor” in the USA) is someone who makes sure that you’re paying enough taxes.
official
inspector
broker
5. A company’s finance _________________ (also known as a CFO) is usually that company’s chief accountant.
official
boss
director
6. A bank _______________________ is a bank employee who deals directly with most customers.
guard
inspector
teller/cashier
7. A bank manager is the person responsible for a particular _______________________ of a bank.
branch
building
inspection
8. A financial advisor is someone who advises people on how to __________________________ their finances. ( = financial affairs)
advise
manage
keep
9. My __________________________ always prepares my tax return for me.
trader
inspector
accountant
10. A venture capitalist is basically _________________________.
an investor
an accountant
a manager
Exercise 3: Reading
Gross Domestic Product (GDP), or the measure of all the products made, services offered, and business conducted in a country over a set period of time, is another one of those business terms that’s frequently referenced but seldom understood. Once again, GDP is simply a calculation of the business that’s taken place in a country annually. The United States, for example, has the largest GDP in the world, thanks to its free market and large population; other nations have solid GDPs as well, and the exact number usually corresponds to its country’s economic system, development, natural resources, education, and more.
Similarly, the process of calculating GDP is simple and straightforward. GDP is comprised of “private consumption + total investments + government investments + government spending + the value of exports minus imports.” In other words, gross domestic product, which is once again the measure of all the business that’s taken place in a country over a period of time, is determined by adding together money spent on private consumption, personal investments, government investments, government spending, and the value of exports (minus imports, so that the total reflects the trade agreements that give money to the country at-hand).
Lastly, nominal GDP refers to a specific year’s gross domestic product purely in terms of production, while real GDP accounts for inflation, and is typically consulted by economists attempting to contrast a country’s current output with those of the past.
Please answer the following questions of understanding:
Question 1:
What is gross domestic product (GDP)?
1 The measure of all the products made, services offered, and business conducted in a country over a set period of time
2 All the money currently in a country
3 The total value of assets currently in a country
4 An indicator of inflation
Question 2:
Which country has the largest GDP in the world?
1 China
2 Australia
3 Russia
4 United States
Question 3:
How is GDP calculated?
1 By counting all the money in a country’s banks
2 By referencing a country’s national debt
3 By adding up private and public consumption
4 None of the above
Question 4:
What is the main difference between nominal and real GDP?
1 Nominal calculates for inflation and real does not
2 There are no differences between the GDP types
3 Real GDP accounts for annual inflation
4 Real GDP is accurate, while nominal GDP is not
Question 5:
Why is GDP important?
1 It can be used by businesses to maximize profits
2 It can help a country be as successful as possible, as GDP can be shown-off on the world stage to attract investors
3 It indicates the relative economic capabilities of a country
4 1 and 2
4. Discussion Session:
- How is the economy in Morocco?
- What are the biggest economic problems in Morocco?
- What are the biggest economic problems in the world?
- What is the difference is between macroeconomics and microeconomics?
- What are some characteristics of a strong economy? A weak economy?
