Market Weaknesses 1
What does the I in EMPIRE stand for?
Imperfect information
What does the second E in EMPIRE stand for?
Economic inequality
_____ is the term for a private political entity with undue influence on the legislative process.
Political machine
Which amendments were passed in the wake of the Civil War
13-15
Whose virtue motivated the Americans during the Revolutionary War?
George Washington
Which market weakness occurs when a third party is hurt by an exchange?
Negative externality
Which market weakness occurs when a third party is helped by an exchange?
Positive externality
What two forms of power were the Progressives wary of?
Private power and public power
What does the acronym LEJSASR help students remember?
The order of the articles of the Constitution
What are the four stages of the Human Predicament Cycle?
Tyranny, revolution, anarchy, competing factions
Which market weakness occurs when a firm sets a price above the equilibrium price?
Market power
Which market weakness occurs when prices and wages fail to adjust to a market “shock”?
Recession
The election of this president in 1932 led to the beginning of what movement?
FDR; New Deal
Which amendment ensures equal protection of all American citizens.
14th amendment
What are the four principles of the rule of law?
Generality
Due process
Consent
Publicity
What are the typical options for government intervention regarding the market weakness of imperfect information?
Use courts to recover damages
Regulate production and marketing
Requires businesses to provide certain pieces of information
What is the typical option for government intervention in the case of a positive externality?
Subsidize
What three “shocks” to the economy caused the Great Depression?
Stock market crash
Run on banks
Dust Bowl
What group during the Ratification Period were concerned by the lack of a Bill of Rights in the new Constitution?
Anti-Federalists
What was the purpose of the Federalist Papers?
To encourage people to ratify the Constitution
In the event of an economic recession, what policy should Congress pursue according to Keynesian economics?
Fiscal policy: Reduce taxes, increase spending
In the event of an economic recession, what policy should the Federal reserve pursue according to Keynesian economics?
Monetary policy: Reduce interest rates, increase money supply
What is one economic reform AND one political reform pursued by the Progressives?
FDA
Public Health Service
Forest Reserve Act
Interstate Commerce Commission
Sherman Antitrust Act
Federal Reserve
Income tax
Labor safety regulations
Child labor laws
Unemployment insurance
Workers compensation
Mandatory public schooling
Initiative
Referendum
Recall
Direct election of senators
Women’s suffrage
In which article of the Constitution do you find judicial review?
Not in the Constitution
What are five roles the government plays in the functioning of the market economy?
Provide money
Provide infrastructure
Prevent coercion and fraud
Enforce exchanges
Define property rights