Economic Systems
What economic system is the one where customs and traditions are the elements that determine the way trade and commerce are performed?
Traditional Economy
Addresses interest rates and the supply of money in circulation, and is managed by the FED
Monetary Policy
The Ups and Downs in the Economy
The Business Cycle
What are the 3 types of Spending?
Mandatory, Discretionary, Interest
The ability of a specific country to produce a good at a lower cost per unit.
Absolute Advantage
What economic system is the one where the government decides what goods and services will be produced and what prices it will charge for them? The government decides what methods of production to use and sets wages for workers.
Command Economy
Money that must be formally approved by congress and the President during the Budget Process each year
Discretionary Spending
A set of actions to control a nation's overall money supply and achieve economic growth
Monetary Policy
For Mandatory Spending, what is the source that receives the most money put into it?
Health Care
Global integration of the economies of the world.
Globalization
What type of economic system is the one in which decisions and the pricing of goods and services are guided by the interactions of a country's individual citizens and businesses. Laissez-faire - hands off?
Market Economy
Things that we all share & consume, they're things that are available, free for anyone to use
Public Goods
The value of all finished goods & services produced by a countries CITIZENS
Gross National Product
For Discretionary Outlays, what are the 2 sources that the money goes to?
Defense and Non-defense
The ability of a country to produce a good or service at a lower opportunity cost.
Comparative Advantage
What type of economic system combines aspects of both capitalism and socialism? This system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.
Mixed Economy
The amount of US National Debt
$33 Trillion
Government Spending is a Component of the _____, this is made up of consumption, investment, government spending, and exports - imports
GDP
Name 2 costs of Globalization.
Increased income inequity (rich get richer, poor get poorer)
Loss of jobs in the United States (companies hiring workers in other countries for lower wages because it is cheaper)
More power to big companies (a few companies to take over the economy)
Name 2 examples of Pure Free Market Economies and have pure competitions.
United States, Japan, Ireland, etc.
What does FICA stand for?
Federal Insurance Contribution Act
15% of the budget went to paying _____ on the debt as of August 2023
Interest
Name 2 benefits of Globalization.
Increased communication
Increased trade (more options and cheaper options)
Higher paying jobs, access to more goods and services
Increased standard of living (higher incomes and longer life expectancy)