Trade Policy and Taxation
Competition and Economic Goals
Economic Thinkers
World Influence and Canada
Political spectrum and Economic Systems/Markets
100
This is the definition of what word? "a tax placed on goods and services imported into a country"
Tariff
100
Define the type of competition that occurs when there is a small number of large companies, each with a bit of market control.
Oligopoly
100
Which classical economic thinker viewed the rich as "Fraudulent, cunning and barbaric"? a. Herbert Spencer b. David Ricardo c. Thorstein Veblan
c. Thorstein Veblan
100
True or False. If the price of gas keeps increasing the price of cars with bigger engines will increase as well
False. As the price of gas increases, there will be less demand for bigger engines as they consume more gas.
100
Where is Canada on the political spectrum, and what type of economic system do they have?
Center (slightly right) and a market economy
200
What is progressive income tax?
A taxing policy by which the tax rate increases as a the taxable amount increases. Simply- As your income level increases, the percentage you are taxed on increases therefore you pay more in taxes.
200
What are the 3 main economic goals?
- Price stability - Full employment - Viable balance of payments
200
I appreciate and respect the rich, and believe that greed is a good thing because it motivates people to be successful. I call this theory wealth without guilt. Who am I?
Herbert Spencer
200
Name the top 3 economies in the world based on Gross Domestic Product.
1. United states (14.6 Trillion) 2. China (5.7 Trillion) 3. Japan (5.4 Trillion) Just recently China surpassed Japan and took second place.
200
What are the 4 principle economic systems?
Market economy, mixed economy, command (centrally planned) economy, and traditional economy
300
Define Free Trade
Allowance of trade between countries without any interference from governments. No taxes/tariffs or other barriers are placed on the goods/services when they are traded.
300
What is 'Perfect Competition'
- A market characterized by a large number of small companies, none of which have total market control
300
Who stated that they thought capitalism was immoral and unjust?
Karl Marx thought that the working class was ultimately the most important. He wanted to create a system which focused primarily on them, and gave them just and moral living and working conditions
300
Which currency is all other currencies compared to and why?
The USD, because it is a stable currency and the United States have the best economy in the world.
300
Name the 3 countries that most resemble a market economy
1. Hong kong 2. Singapore 3. Australia
400
The Canadian Revenue Agency is responsible for the collection of taxes, the issuing of tax refunds and also ensuring compliance with Canada's tax legislation and regulations. What is the name of the U.S government agency that is responsible for the same thing?
Internal Revenue Service (IRS)
400
What is the difference between direct and indirect competition? And give a modern example for each
Direct competition is when companies with products that are very similar are competing in the same market and for the same money (wendy's vs Mcdonalds). Indirect competition is when companies with products that are not similar are in competition for the consumers income. (grocery store vs Mcdonalds)
400
Provide an example of someone who exhibits Adam Smiths philosophies, can be from past or present.
- John D. Rockefeller - Andrew Carnegie - Cornelius Vanderbilt
400
Who is Canada's largest trading partner? What percentage of Canada's exports do they purchase?
The United States. Approximately 70%. United States has become by far Canada’s largest trading partner, accounting for about 73% of exports and 63% of imports as of 2009
400
Name two benefits of innovation in a market economy
- Advancement in technology. - A variety of products. Businesses are constantly innovating to create products that are superior to those of there opponents.
500
Name three of the five main types of taxation in Canada.
- personal income tax - sales tax - excise tax - property tax - corporate income tax
500
John D. Rockefeller would purposely set prices for his gas station extremely low, so that his competition wouldn't be able to afford to compete with him. What is this process called?
Predatory Pricing
500
Canada's Economic Action Plan has been created by the Canadian Government to help create and protect jobs while investing in future prosperity. They plan on doing so by providing 60 billion dollars over 2 years, which will go towards funding new communities and infrastructure as well as improving Canada's financial systems. Which economic thinker would support this idea? What were their thoughts on government spending?
John Maynard Keynes; he believed the government should intervene during times of concern (such as a recession or depression) and spend money to improve the economy.
500
Why is it that wars are typically considered good for an economy during a time of crisis? ex: depression or recession
Wars can be good for an economy in a few ways; they create massive amounts of jobs, because so many people are needed as soldiers, and a lot of people are also needed in factories to make ammunition, uniforms etc; they provide less educated workers with more jobs, because less education is required for soldiers/factory workers etc; government spending is very high, so a lot of money is put into the economy to help it grow;
500
Egypt just went through a major political milestone. Where have they stood on the political spectrum for the last 30 years? And now that President Mubarak has stepped down, where does Egypt wish to stand on the political spectrum?
Although Mubarak claimed to be democratic he was an authoritarian leader, and was right of centre on the political spectrum. Egypt hopes to establish a stable democratic (centre of political system) government in the near future.
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