1
What gives the right to the US Government to collect taxes?
Constitution
Why are sales taxes regressive?
Since sales taxes are fixed, the higher the income the less someone will pay in sales tax. Lower income the more they will pay
Why is Federal Income Tax progressive?
The higher the income, the higher percentage of income is taken in taxes
Purpose of expansionary fiscal policy
To encourage economic growth, and try and prevent or stop inflation
What problem did the Great Depression highlight that classical economists did not address?
How long the market would take to return to the Equilibrium. Classical economists believe the market will eventually self-correct
What Economic theory did President Ronald Reagan believe in
Supply-side economics
What was John Maynard Keynes' view on the government involvement in the economy?
Active involvement
What is the result of the government borrowing to cover large deficits?
Hyperinflation
What is the major argument against a federal amendment forcing a balanced budget?
It would make it more difficult for the government to respond to rapid changes in the economy.
Functions of the Federal Reserve
Process checks for the Federal Government, regulate the money supply, and clear checks
Why does the Fed control money?
Too much money in the economy would lead to inflation
Why does the Fed rarely change reserve requirements?
It can be very disruptive to the entire banking system.
Why can the Federal Reserve System operate with a high degree of political independence?
The system is technically owned by the banks it serves, and not in the government.
What policy does the Fed use most to change the money supply
Open Market Operations
What is the best response to a recession that is expected to turn into expansion in the short run
Do nothing and allow the economy to fix itself
Why is inside lag shorter for monetary policy than fiscal
The Federal Open Market Committee can act almost immediately
What is the Law of Comparative Advantage
A country is better off producing goods and services that it can produce efficiently
What is the relationship of specialization and trade?
Trade allows some nations to specialize in the production of some goods and trade for the rest
What is a trade war?
A cycle of trade barriers escalating between nations
What are the arguments for free trade?
Countries with the fewest trade barriers have the highest standard of living
What is the name and approximate age of Mr. Coffey's dog?
Major. 9 months
What are Mr. Coffey's degrees in? State completed and ongoing.
Social Studies Education and History; Bachelors'
School Administration and Leadership; Masters' of Education
Without looking at the back of the room. State the correct order of the Armed Services flags at the back of Mr. Coffey's room. From left to right.
Marine Corp., Army, Air Force, Coast Guard, Navy
How many Nieces/Nephews does Mr. Coffey have?
3 nephews. Clay, Matthew, and Dylan.
Who is the best Economics teacher at Zionsville Community High School?
Mr. Brennan