Unit 1
What are the 4 factors of production?
Land
Labor
Capital
Entrepreneur
What is GDP?
Gross Domestic Product - the value of all finished goods and services produced within a countries border
In terms of the national budget, our largest expenditures are?
Mandatory
What are two protectionist policies?
Tarrifs and Quotas
What is social security?
A program created to promote the economic security of the American people.
What is it called when human want for goods, service, and resources exceed what is available?
Scarcity
In April 2020, unemployment in the US reached a record high of 14.7%. This would indicate a ______ in the business cycle.
Trough
Is this monetary or fiscal policy: The IRS adjusting the tax code
Fiscal Policy
What is outsourcing
Hiring someone else to do a job that is usually done within a company
What type of spending defense allocated to?
Discretionary Spending
What did Karl Marx believe in?
Freedom: the people own the government
Father of Communism
What is CPI?
The average prices of numerous types of consumer goods
Which tax brings in the most revenue for the federal government?
Individual Income tax
What is comparative advantage?
The ability of a country to produce a good or service at a lower opportunity cost
What is Arbitrage?
The simultaneous purchase and sale of funds (or goods) in order to profit from a difference in interest rates.
What are the pros and cons of a free market economy?
Pros: competition drives the economy which encourages efficiency and innovation
Cons: Poor working conditions and an inevitable socioeconomic hierarchy
Why should we look at more then one indicator when making judgments about the health of our economy?
That would give you a better understanding of the overall health of the economy
Why is it necessary to use both monetary and fiscal policies to regulate the economy?
The economy is complex and requires macroeconomic tools from the fed and the government to manage or even stimulate economic activity
What is globalization?
Global integration of the economies of the world.
Was Alexander in favor or against central banking? Why or why not?
He believed in central banking saying it is necessary for national credit and economic stability.
A laissez-faire economic doctrine is most associated with which philosophy?
Capitalist
Why are most modern recessions shorter and less frequent?
The government and the federal reserve bank play a more substantial role in regulating the economy
How would an increase in your income affect your marginal tax rate?
Only the portion of your income that exceeds the previous bracket will be taxed at the higher rate
What occurred in 1990 in the modern textile industry?
A wave of free trade policies (NAFTA) wiped out restrictions and duties on clothing.
What is Division and specialization of labor?
When companies divide their production or service process into several set tasks