People of Economics
I feel that the industrialization that's occurring in the 1800’s devalues human dignity and creates greater income and wealth inequality.
Karl Marx, German philosopher of economics.
Communism: a political theory derived from Karl Marx, advocating class war and leading to a society in which all property is publicly owned and each person works and is paid according to their abilities and needs.
COMMAND ECONOMY
How Do Banks make money?
By accepting withdrawals(savers) and using that money to make loans to borrowers with interest. as long as the interest rates for the loan is higher than they are paying on their savings yield they are in the green.
This type of tax takes a larger percentage of income from low-income people than from high-income people.
Regressive Tax
These two countries are the world leaders in GDP
USA + CHINA
These are America's top 3 trading partners.
China, Mexico, Canada
I said this: “Depressions are a result of constrictions of the money supply"
Milton Friedman
Provide an example of fiscal policy in action.
Deficit Spending
Social Security
Workers Progress Administration
Public Works Programs
What is one way the US government has addressed discrimination in the workplace?
Affirmative Action - policies designed to promote the hiring of individuals from groups that have historically faced job discrimination. Such groups include minorities, women, and people with disabilities.
Anti-Descrimination Laws
Right-to-work law a law that prohibits employers from making union membership a requirement for getting or keeping a job
Communism is to Command Economy as Capitalism is to_______ Economy
Market Economy
Capitalism: an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.
Name 3 of the 4 Trade Barriers
Protective Tariffs are taxes placed on imported goods.
Import Quotas are limits on the quantity of a particular good that can be imported during a specified period of time.
Embargoes impose a ban on trade with a country or group of countries, usually for political reasons.
Voluntary Export Restraints (VER) set limits on the quantity of goods that can be exported from a country during a specific time period.
I believe the Government should use more Deficit Spending
John Maynard Keynes
Maintain Competition.
Protect Property, Redistribute Wealth, Promote Economic Stability, Protect Workers, Safeguard Investments/Protect Consumers & Public Goods
Federal Income Tax is an example of a Progressive Tax because_____________
A Progressive Tax involves a tax rate that increases (or progresses) as taxable income increases. It imposes a lower tax rate on low-income earners and a higher tax rate on those with a higher income.
Name the 3 key economic indicators we use to determine the stability of our economy
Unemployment Rate, Inflation Rate, GDP
A ________ is a market or an industry dominated by just a few firms that produce similar or identical products.
Oligopoly
An Oligopoly is a market or an industry dominated by just a few firms that produce similar or identical products. Oligopoly is one of the less-competitive market structures. On our spectrum of structures, it lies closer to monopoly than to perfect competition.
A Monopoly is a market or an industry consisting of a single producer of a product that has no close substitutes.
You can't see me. I am a Classical Economist
Adam Smith
One of the first to be called an economist was Adam Smith
Wrote The Wealth of Nations-
Division of labor
Capitalist manifesto
Invisable hand
He introduced a way of thinking about economic ideas.
Where as An easy-money policy is an expansionary monetary policy. A tight-money policy is a ________ monetary policy
A contractionary monetary policy
An easy-money policy is an expansionary monetary policy that speeds the growth of the money supply to prevent recession.
A tight-money policy is a contractionary monetary policy that slows the growth of the money supply to prevent inflation.
In our Town Hall Budget Deficit meeting Proposal A was a flat user fee where every visitor regardless of status or income had to pay the same amount of money to use the public facilities(parks, rec center, library etc.) This is an example of what Tax Structure?
Proportional/Flat Tax
A Proportional(Flat) Tax is a tax that takes the same share of income at all income levels.
The USA has this type of economy.
Mixed Economy
In a Mixed Economy, both the government and individuals play important roles with regard to production and consumption. But who decides what varies from one country to another.
No country in the world today relies on a purely traditional, market, or command economic system. These systems represent theoretical extremes. Nearly all countries have mixed economies that fall somewhere in between these extremes.
Provide an example of a Negative Externality
Global Warming
An Externality is a side effect of an action by a producer or consumer.
An anagram of my name is Elmore Jepwol. I'm kinda a big deal.
Jerome Powell
The Federal Reserve requires Banks have ________ on hand. This is an example of ________ one of the six roles of the government.
Federal Reserve Requirement - (6-9%)
Safeguard Investments
In the 1930s, congress passed this act which guaranteed many rights to Labor Unions
The Wagner Act
To calculate our GDP we use the formula
C + I + G + NX = GDP
Why is the value of NX typically a negative number?
Because as Americans, we import more than we export.
An attempt to influence another country’s politics is the most common move for which form of protectionism?
Embargo