Government and the Economy
Give one example for how taxes are used to promote social goals
Cigarette tax,etc
A Sales tax is which of the following: Proportional, Progressive, Regressive
Regressive
What the name of an increase in the overall price level of goods and services produced in an economy?
Inflation
Who controls fiscal policy?
Congress and President
What happened to Mr. DeFord that forever made him dislike Subway
Food Poisoning
The power of a government to take an individuals property for public use
Eminent Domain
To calculate the amount of tax due, multiply the tax base by the tax ______
rate
The percentage of the labor force that is not employed but is actively seeking work?
Unemployment rate
Who controls monetary policy?
The Federal Reserve
What is Mr. DeFord's favorite food?
Pizza, duh
What is the tragedy of the commons?
When a common resource is destroyed through overuse
When the costs to taxpayers of paying a tax exceed the revenues gained it is called a ___________
Deadweight loss
The GDP stands for
Gross Domestic Product
Explain the multiplier effect
dollars cut by taxes or spent government will multiply in the hands of citizens making buying decisions
What doe Mr. DeFord need zippered pockets
Because he goes hard, in everything he does
Which historical period brought the greatest increase in government involvement in the U.S.?
The Great Depression
What type of tax generates the most money for the FEDERAL government
Individual Income taxes
A decline in economic activity for at least six months is referred to as a
recession
What is one thing Congress could do if it wanted to use an expansionary fiscal policy
Cut taxes or raise government spending
What is Mr. DeFord's single issue for when he runs for mayor of Lafayette
Expanding and improving the Waneka Lake Disc Golf Course.
The power of our federal government to regulate businesses comes from the...
U.S. Constitution
Adam Smith's were certainty, convenience, efficiency, and _______
equity
What do you think is the best economic indicator and th eworst economic indicator? Explain why
Answers will vary
What is one thing the Federal reserve could do if it wanted to use expansionary monetary policy
lower the discount rate, lower the reserve requirement, buy government bonds in open market operations
What animal does Mr. DeFord hate more than any other?
Snakes