Monetary Policy
Fiscal Policy
Taxes
Review
Random
100
The purpose of monetary policy is...
to influence the economy by controlling the money supply
100
Fiscal policy is the use of _______ and _____ to influence the economy.
Spending and taxation
100
What type of tax will I pay to my local government when I own real estate?
Property tax
100
What is inflation?
A rise in prices over time
100
What is the purpose of public disclosure laws?
To protect the public by giving them factual information about products and services
200
How many people are on the Board of Governors?
7
200
What happens if Congress doesn't pass a new budget before the old one expires?
The federal government shuts down
200
What is the difference between a progressive and proportional tax?
In a progressive tax, the percentage of income paid increases as income increases. In a proportional taxes, the percentage stays the same.
200
Draw a supply curve for tacos. Label everything.
See solution
200
List two examples of entitlement programs
Food stamps, subsidized housing, social security, medicare, medcaid
300
What is the goal of each type of monetary policy?
Expansionary decreases unemployment, contractionary decreases inflation
300
List the three steps in the creation of the federal budget
1. Agencies write spending proposals. 2. OMB writes budget and president submits it to Congress 3. Congress debates and passes the budget
300
From which sources does the federal government receive the most tax dollars?
Individual income taxes
300
Gross domestic product is the final _______ value of all _______ and _______ produced within _______ in a given year.
dollar, goods, services, a country's borders
300
The U.S. uses money with _____ value.
Fiat
400
DAILY DOUBLE: What is the name of the current Chair of the Federal Reserve?
Janet Yellen
400
If the government starts to buy more goods and services in the free market, what is the short-term result?
More jobs and economic output
400
What is the highest income tax % in our current system? Your guess must be within 5% to get it right.
39.6% (answers from 34.6% to 44.6% are valid)
400
Name and describe one of the economists that we studied in our first unit.
Adam Smith, John Maynard Keynes, Friedrich Hayek, Milton Friedman
400
Name the three parts of the definition of money
Money serves as a medium of exchange, is a unit of account, and stores value
500
An example of expansionary monetary policy is I. an increase in the reserve requirement II. when the Fed sells bonds to banks III. an increase in the discount rate IV. a decrease in the discount rate
IV
500
Put these spending categories from 2014 in order from greatest to least: health care, military, income security, transportation, interest on debt
Income security, health care, military, interest on debt, transportation
500
Put these tax sources in order from greatest to least: corporate income tax, individual income tax, social insurance tax, other taxes
Individual income tax, social insurance tax, corporate income tax, other taxes
500
Draw a demand curve for tacos. Describe one determinant of demand that might affect the curve, and illustrate what change it would cause.
See solution
500
1. What happens when a person declares bankruptcy? 2. What is the advantage of bankruptcy? 3. What is the disadvantage of bankruptcy? 4. How much does it cost to file for bankruptcy? (must be within $20)
1. A plan is made to divide assets among creditors for debt forgiveness 2. Creditors stop calling, debts will be forgiven 3. Destroys credit score 4. $306
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