Ministry of Economy - An Ideal World eTwinning project

Helps you plan how to spend your money

The way a country's wealth is divided among its population.

an economic system where private individuals own and control businesses.

Means having steady growth, low inflation and low unemployment

Proportional taxes (flat taxes) take the same percentage from everyone, regardless of income.

Income tax is a tax on the money people earn from their jobs and investments.

The inflation rate measures how much prices for goods and services are rising.

GDP means Gross Domestic Prices

Transparency means being open and clear about how money is being used.

A deficit occurs when revenues exceed expenditures.

Revenues are the money spent by a government or organization

A surplus occurs when revenues exceed expenditures.

blends elements of both capitalism and socialism.

Revenues are the money a government or organization earns (e.g. taxes, fees and grants).

Mandatory payments to the government.

The money a business makes after paying all its costs.

Economic efficiency means the tax system should not waste resources.

Scarcity means there are limited resources to meet unlimited wants and needs.

Tax rate is the percentage at which an individual or corporation is taxed.

Progressive taxes are designed to take a larger percentage of income from low-income than from high-income earners.

Using money to make more money

profit at the end of the year

Tax systems are important because they help fund public services like schools, roads and hospitals.