Archive for the ‘Level 1’ Category

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Nationalization is…

Friday, June 3rd, 2011

Nationalization is when private property or industry is taken over by the government. Countries usually choose to nationalize portions of a specific industry, and they do it for different reasons.

If an oil-producing country’s oil drilling operations are owned mostly by foreigners, for example, the government might choose to nationalize all drilling operations to get rid of the excessive foreign influence.

Sometimes countries with struggling industries choose to nationalize certain sectors of the economy so that government resources can be used to help those industries develop. When the U.S. government spent money bailing out big banks during the economic crisis, some people thought it was a step toward nationalizing the financial sector.

The Great British Pound (GBP) is…

Friday, June 3rd, 2011

The Great British pound (£) is the official currency of the Great Britain. The currency’s official name is “the pound sterling,” but everyone calls it the pound.

The European Union is…

Friday, June 3rd, 2011

The European Union is a political and economic organization made up of 27 countries in Europe. It’s not a country by itself, but in some ways it acts as a high-level governing organization for its member nations. Being part of the Union means that citizens, goods, and services are allowed to move freely between affiliated nations, without having to deal with things like visas or trade restrictions. Members of the EU also use the same currency, called the Euro.

Basically, being part of the European Union is like being in a club whose members are from all over Europe and who have decided that many of the same rules will govern every member – despite their differences in nationality. But not every European nation is a member of the EU (Switzerland, for example), and some member nations have not yet adopted the official currency (the United Kingdom still uses the Great British Pound).

A Layoff is…

Friday, June 3rd, 2011

A layoff is when an employee is either temporarily suspended or permanently fired from a job. Layoffs aren’t usually about employee performance, but rather a consequence of a company experiencing a financial crisis. The company may need to downsize, resulting in the elimination of certain jobs, in order to cut costs.

Racism is…

Friday, June 3rd, 2011

Racism is discrimination against a person or persons on the basis of race. Racism takes many forms, ranging from the explicit (bigoted comments from a single person) to the unconscious (unintentionally discounting a job applicant because of an ethnic-sounding name) to the collective and systematized (segregation in education, laws designed to promote the well-being of one race over another, the privileging of white employees).

A Sponsor is…

Friday, June 3rd, 2011

A sponsor is something or someone that gives money to support an event, project, person or organization. Sponsoring can happen on a large scale (for example, Coca-Cola sponsoring the World Cup) or on a small scale (like if you ask your parents to sponsor a car wash for your soccer team). It just means that the sponsor gives resources (money or time) to help make something happen.

Sponsoring has two big advantages: it provides the resources needed to put on an event or maintain a team, and it allows the sponsor to plaster its name all over the event. It’s kind of like advertising, because you get your name in front of potential customers, and you get the priceless image of giving back to the community.

Tax-Exempt is…

Friday, June 3rd, 2011

Tax-exempt is exactly what it sounds like: excused from taxation. This usually applies to organizations that aren’t required to pay federal income taxes, but it can also refer to some kinds of personal income. For example, interest that you earn from bonds issued by cities, counties, or states is tax-exempt.

Taxable Income is…

Friday, June 3rd, 2011

Taxable income equals the portion of your earnings the government is allowed to tax. Most income is taxable, so if you have a job, odds are that whatever money you make at that job counts as taxable income.

Things that are tax-deductible, like most charitable donations, reduce the amount of your taxable income and so may reduce your tax bill.

A Social Security Number is…

Friday, June 3rd, 2011

A social security number (SSN) is a nine-digit number issued by the Social Security Administration to every United States citizen, plus permanent residents and temporary working residents. Its main purpose is to track individuals for taxes, but it’s also used as an official national identification number.

Precious Metals are…

Friday, June 3rd, 2011

Precious metals are metals that are rare and valuable. For example, gold, platinum, and silver are all precious metals.

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