Fundamental Principles of US Government
This fundamental political principle states that the people are the source of any and all government power.
What is consent of the governed?
This deliberative, bicameral body creates laws.
What is the US Congress?
The first ten amendments of the US Constitution.
What is the Bill of Rights?
A severe worldwide economic downturn during the 1930s.
What is the Great Depression?
The measure of the monetary value of final goods and services—that is, those that are bought by the final user—produced in a country in a given period of time
What is the GDP or gross domestic product?
These are places (physical or virtual) where buyers and sellers interact to exchange goods and services
What are markets?
The overall rise in the prices of goods and services over time. It has significant effects on consumers, businesses, investors, and the overall economy.
What is inflation?
A concept that shows how inputs (like labor, capital, and materials) are used to produce output.
What is the production function?
The fundamental principle which states that the government is not all powerful and may only do what the people have given it the power to do.
What is limited government?
This program was instituted after the assasination of President Garfield. It tried to ensure that qualified candidates received federal jobs ensuring competency, continuity, and fairness.
What is the Civil Service act?
The right to freedom of speech, press, religion, assembly, and petition are found here.
What is the first amendment?
The section of economics that focuses on the behavior of individual economic agents, such as households, firms, and markets.
What is Microeconomics?
This measurement is used to compare the GDP of various sized countries.
What is the per capita GDP?
A situation where quantity supplied exceeds quantity demanded, leading to price decreases.
What is a surplus?
A measure that examines the weighted average of prices of a basket of goods and services that are of primary consumer needs
What is the CPI or consumer price index?
These are the four factors of production.
What are land, labor, capital, and entrepreneurship?
A principle that states that the government and those who govern are bound by the law as are those who are governed.
What is rule of law?
The principal that no branch of the US government is above the rest and all of them are to keep each other in line.
What are checks and balances?
This amendment defines citizenship.
What is the 14th amendment?
The three basic questions of economics
What to Produce, How to produce, and for whom to produce.
This sector is on average 2/3rds of the US GDP.
A situation where quantity demanded exceeds quantity supplied, leading to price increases.
What is a shortage?
A federal agency that helps control the US economy by using monetary policy to determine the size and rate of growth of the money supply.
What is the US Federal Reserve?
Costs that do not change regardless of the amount of output.
What is a fixed cost?
A principle that literally means People Rule.
What is democracy?
The term for cases the supreme court must hear and must hear first, such as disputes between two states.
What are original jurisdiction cases?
Citizens are granted the right to equal protection under the law and due process of law in this amendment.
What is the 14th amendment?
The use of resources today to create future benefits, often in the form of capital.
What is investment?
This is the fastest growing sector of the US Economy.
What is the service sector?
A situation that occurs when the quantity supplied equals the quantity demanded at a particular price.
What is supply equilibrium?
This theory explores how consumers derive satisfaction from goods and services.
What is Utility Theory?
The economic law that states adding more of one input, while keeping others fixed, will eventually yield lower additional output.
What is the Law of Diminishing returns?
The people elect public office holders to make laws and conduct government on the people's behalf.
What is representative government or republican government?
This clause allows congress the ability to create laws that fulfill it's enumerated powers and adjust to circumstances unforseen by the founding fathers.
What is the Necessary and Proper Clause?
The often debated amendment that states:A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.
What is the second amendment?
Known as the "Father of Economics," he wrote The Wealth of Nations and introduced the idea of the "invisible hand."
Who was Adam Smith?
This sector of the US economy has gone from 37% to less than 2% of the US economy.
What is the farming industry?
The total quantity of a good that all producers are willing to sell at various prices.
What is the Market Supply?
This type of inflation occurs when an increase in the supply of money and credit stimulates the overall demand for goods and services to increase more rapidly than the economy’s production capacity.
What is the demand-pull effect?
These costs change based on the output.
What are variable costs?
What is capitalism?
This amount of senators must vote to send a bill to the floor for debate. It's called a cloture vote to prevent a verbal filibuster.
What is 3/5th of the senate or 60 senators?
What is passing another amendment?
The branch of economics that deals with the broader economy, exploring national and global trends like inflation, unemployment, and economic growth.
What is Macroeconomics?
A type of company where pieces of the company, called stock, are sold and traded to whoever can and wants to buy them on the stock market.
The economic condition caused by decreased demand, lower production levels, falling prices, and increased unemployment.
What is a recession?
This type of inflation is caused by the increase in prices working through the production process inputs.
What is the cost-push effect?
The additional cost of producing one more unit.
What is the marginal cost?
A system of government that divides power between a national government and smaller government units called states.
What is federalism?
This amendment bars restricting voting based on taxes, including poll taxes.
What is the 19th amendment?
A policy of minimal government interference in economic affairs.
What is Laissez-Faire?
What are government regulations?
The type of global market where raw materials are bought and sold.
What is a commodity market?
Three government actions that can negatively affect consumer demand.
What are Tariffs, Government shutdowns, and government actions that cause sudden increases in unemployment?
Decisions businesses make to stay open where they continue producing if revenue covers variable costs.
What are short run production decisions
A political and economic doctrine that emphasizes individual autonomy, equality of opportunity, and the protection of individual rights.
These duties of Congress are laid out specifically in the Constitution.
What are the Enumerated Powers?
This amendment sets the date for presidential inaugurations and the first date of congress.
What is the 20th amendment.
Undesirable events that happen when things go wrong due to business actions.
What is Market Failure?
The kind of business that is owned by only one person.
What is a single proprietorship?
A maximum price set by the owner of the market or government that must be used carefully because it can lead to shortages.
What is a price ceiling?
This type of inflation can occur across any sector. It happens when the expectation of inflation causes additional inflation.
What is built in inflation?
The extra output gained by adding one more unit of input.
What is marginal physical product or MPP
A philosophy that emphasized the right of all men to life, liberty, and property
What is Natural Rights Philosophy?
This type of committee irons out the differences between the version of a bill that passed a house and the version of the bill that passed the senate.
This amendment banned blocking voting rights on the basis of race, color, or previous enslavement.
What is the 15th amendment?
Inefficiencies or unintended consequences caused by government policies.
What is Government Failure?
These economies have a lot of money sunk into factories, technology, and infrastructure. This allows a country to produce more with less effort and manpower
What is a captial intensive economy?
A minimum price set by the market or the government. They must be carefully used or they can lead to surpluses.
What is a price floor?
The kind of product where a price increase leads to a decrease in total revenue; price decrease leads to an increase in total revenue
What is Elastic Demand Products?
The decisions businesses make to expand when profits justify them.
What are Long-Run investment decisions?
The supreme law of the land in the United States.
What is The Constitution and Laws of Congress?
The name for all the unelected system of executive agencies that execute the laws made by congress?
This amendment explains how to replace a president that either physically or mentally is unable to serve as president any more.
What is the 25th amendment.
A 1920's protectionist policy designed to shield American farmers and manufacturers from foreign competition by imposing high tariffs on imported goods.
What was the Smoot-Hawley Tariff Act?
These economies use less capital ($) machinery and technology and more manpower.
What is a labor intensive economy?
These are the six determinates of supply.
What is technology, factor costs, competition, taxes & subsidies, expectations, and number of sellers?
The kind of product where a price increase leads to an increase in total revenue; price decrease leads to a decrease in total revenue.
What is an inelastic demand product?
The formula to calculate this number is
Total Revenue - (Accounting Costs + Opportunity Costs)
What is economic profit?