International Trade & Economic Systems
In a command economy who decides the basic economic questions?
The government
A sole provider of a good or service
A monopoly
The 3 types of money
Coins, bills, and electronic money
The main rivals during the Cold War
United States and the Soviet Union
What type of tax takes a percentage of the money you make on a job?
Income tax
These 3 questions determine what economy a nation will have
what to produce, how to produce, and for whom to produce
A time of declining economic activity lasting six months or longer
A recession
Banks make money by charging this.
Interest
This causes consumers to pay higher prices for domestic goods.
Trade barriers
A tax rate that goes up as income goes up
Progressive tax
When a country has plenty of goods, high standards of living, and high quality health care, it would be considered a
Developed country
Gross Domestic Product after adjustments for inflation
Real GDP
Manages currency, regulates commercial banks, and serves as the government bank.
The Federal Reserve
Formed to keep peace among nations
United Nations
A tax rate that stays the same regardless of income
Proportional Tax
When nations import more than they export, it causes a
Trade deficit
Long-term increase in the general level of prices
Inflation
Monetary policy
Changing the money supply to affect the cost of credit, economic growth, and price stability.
This organization fights and helps prevent disease around the world.
The World Health Organization
When more money is spent than received.
Budget deficit
How do nations solve the problem of scarcity?
By importing products from other countries and exporting products to other countries. (trade)
Aid programs that require people who are receiving welfare to do some work for their benefits
Workfare
If the Fed decreases the supply of money, interest rates will do this.
If people borrow less money, this happens to prices
Interest rates go up, prices are pushed down.
Department of Homeland Security
What is the biggest expenditure for state governments?
Public welfare