Economic Systems
This economic system relies on supply and demand with little government intervention.
What is capitalism?
This form of government divides power between national and regional levels.
What is federalism?
This policy involves government spending and taxation to influence the economy.
What is fiscal policy?
A tax imposed on imported goods.
What is a Tariff?
This philosopher wrote The Communist Manifesto with Friedrich Engels.
Who is Karl Marx?
In this system, the government controls major industries but allows some private enterprise.
What is socialism?
A system where a single ruler holds absolute power.
What is an autocracy?
The central bank’s control of money supply and interest rates.
What is monetary policy?
This agreement eliminated most tariffs between the U.S., Canada, and Mexico.
What is NAFTA/USMCA?
John Locke’s idea that government must protect life, liberty, and property.
What is the social contract?
This term describes an economy where traditions and customs dictate production
What is a traditional economy?
This type of democracy allows citizens to vote directly on laws.
What is a direct democracy?
When the government spends more than it collects in taxes, it creates this.
What is a budget deficit?
When a country can produce a good at a lower opportunity cost than another.
What is comparative advantage?
Thomas Hobbes’s book describing life without government as "nasty, brutish, and short."
What is Leviathan?
A centrally planned economy where the government owns all resources.
What is Communism?
A government where religious leaders hold political power
What is a theocracy?
The Federal Reserve’s most common tool for controlling money supply.
What are open market operations?
A total ban on trade with a specific country.
What is an embargo?
This political ideology opposes rapid change and favors tradition.
What is Conservatism?
This economic concept, advocated by Adam Smith, suggests markets self-regulate through competition
What is the "invisible hand"?
This principle ensures no single branch of government becomes too powerful.
What are checks and balances?
This economic theory advocates for government intervention during recessions.
What is Keynesian economics?
This organization oversees global trade rules and resolves disputes.
What is the WTO?
This French thinker advocated for the separation of powers in government.
Who is Montesquieu?