Governmant Protections
How does the government protect consumers from unsafe products?
Safety labels
What type of tax is commonly added to the price of goods and certain services when people purchase them?
Sales tax.
What happens when the general price level rises over time, reducing what people can purchase with the same amount of money?
Inflation.
What type of economic policy involves the government's decisions about spending and taxation?
Fiscal policy
Which federal grant program helps eligible undergraduate students with financial need pay for college?
Pell Grants.
Name one way the Government protect the interests of workers?
Acceptable answers include
safe and secure work placessets health standards
workers get their wages, no discrimination
unemployment insurance
What type of tax is generally charged on money people earn through wages and salaries?
Income tax.
What is one tool the Federal Reserve can use to influence borrowing, spending, and economic activity?
Adjusting interest rates.
What is the main goal of expansionary fiscal policy?
To stimulate economic growth.
Which safety-net program provides temporary income support to eligible workers who lose their jobs through no fault of their own?
Unemployment Insurance.
How has (OSHA) Occupational Safety and Health Administration helped to protect workers physical well being?
Saftey Standards for industries
Which tax often helps local governments pay for public schools, fire departments, and other emergency services?
Property tax.
Which U.S. institution is primarily responsible for conducting monetary policy?
The Federal Reserve.
What is the difference between a government budget deficit and the national debt?
Deficit is the yearly shortfall
Debt is the total amount owed
Which program provides temporary assistance to eligible low-income families with children to help meet basic needs?
Temporary Assistance for Needy Families (TANF).
What angency was created after the passing of the Meat Inspection Act and the Pure Food and Drug Act to oversee food saftey?
Food and Drug Administration (FDA)
What tax helps fund Social Security benefits, including retirement benefits for eligible workers?
Social Security tax.
When inflation is too high, what action might the Federal Reserve take to make borrowing more expensive and cool demand?
Raise interest rates.
If the government raises taxes or reduces spending to slow demand in the economy, what type of fiscal policy is it using?
Contractionary fiscal policy.
Which federal law expanded access to health insurance through measures such as insurance marketplaces and financial assistance for eligible people?
The Affordable Care Act (ACA).
What economic term describes a side effect of a transaction that affects people who were not directly involved?
An externality.
What is the government's legal power to take private property for public use, such as building a road, generally requiring just compensation?
Eminent domain.
Does consumer spending increase or decrease when contractionary economic policy is used?
Consumer spending generally decreases.
During a recession, name one action the federal government could take using expansionary fiscal policy to encourage economic activity.
Increase government spending or reduce taxes
Whats a government program that benefits retired workers
Social security