The definition of building codes and why they help consumers.
What are laws that only allow certain building types in certain locations. Protects home owners from having a factory all of the sudden right near their home.
100
The reason for compulsory education in the United States.
What is all of society benefits from a more educated and capable workforce.
100
A major problem with institution a price floor.
What is a surplus is created since the price is above the equilibrium point.
200
An item that may have a sin tax on it.
What are gambling winnings, cigarettes, or alcohol.
200
An example of a government owned corporation.
What is US Postal Service, Amtrak, PBS
200
Who would be protected by a price ceiling? How?
What is consumers. It prevents essential goods from becoming too expensive during a shortage.
200
The reason censorship can harm the economy.
What is less spread of knowledge and less efficient access to information.
200
The definition of fraud.
What is engaging in dishonest or misrepresentative business practices.
300
The way the US collects the majority of its tax revenue.
What is income tax.
300
Two requirements of all public goods.
What is non-rival and non-excludable.
300
The role of consumer protection agencies. Give an example of one as well.
What is to protect consumers from dishonest practices from producers.
Examples:
FDA - Food and Drug Administration
FTC - Federal Trade Commission
CPSC - Consumer Product Safety Commission
FAA - Federal Aviation Administration
FHWA - Federal Highway Administration
300
An example of a labor law for teen workers
What is limits on hours during the school year, not allowed to preform certain tasks, must be paid minimum wage.
300
The main characteristic of a monopoly.
What is one firm dominating an entire industry.
400
How sales tax works and some common items exempt from sales tax.
What is a percentage of every purchase is added on. In MN clothes, food, and other necessities are exempt from sales tax.
400
The steps in the federal budget process.
Office of Management and Budget assists executive branch in making a budget.
What is president makes budget proposal to congress.
US Congress uses presidents suggestions (sometimes) and creates a budget bill.
President signs into law.
400
A group of company owners colluding together to set a high price for a given good or service.
What is a Cartel.
400
The connection to environmental laws and unemployment. Must explain why this connection exists.
What is environmental laws lead to higher unemployment. These laws increase costs of production for producers and they produce less, leading to unemployment.
400
The difference between the ability to pay principal and the benefits received principal.
What is ability to pay states those with a higher income are more able to shoulder a higher tax burden. Benefits received principal states that those most using government services should have the highest tax percentage on income.
500
Two different types of tariffs.
What are:
Protective - helps a countries domestic industries to stay competitive.
Retaliatory - Meant to punish a different country for unfair trade practices.
500
The definition of a merit good.
What is a good or service that benefits not just the people receiving it, but also the rest of society.
500
How a protective tariff helps producers and how it hurts consumers.
What is a tariff will allow producers to sell a good for a higher price. However consumers need to then pay higher prices for goods.
500
Why regulations create higher prices for consumers.
What is producers have increased costs with new regulations. They pass these on then to consumers.
500
The mission of the World Trade Organization
What is to allow for reduced tariffs and fair trade practices among countries so that trade disputes do not create large scale conflicts.