Economics Pt1
What are three important economic resources?
What is the economy of the United States?
Capitalist Economy
Mixed Economy
What is a ROTH IRA or 401k
Individual retirement account - a savings account that is not taxable
ROTH IRA: pay taxes upfront but not after
401k: Not taxed until you take money out of fund
What is the purpose of government?
Protect, maintain public order, resolve social conflicts, responsibility for a stable economy, and provide public services.
Political Party
A group of people with similar beliefs and ideas, who try to influence the government through multiple political ways.
Traditional economy __
relies heavily on habit, custom, and ritual to decide what to produce and whom to distribute to
Why do markets exist?
Because individuals cannot always be self sufficient
What are savings accounts and what type of income are they?
Passive income - similar to investment
savings account compound interest and appreciate like Treasury bills/
Unitary System
A form of government in which all powers of the government are held by a single unit or agency.
Recall
The process by which voters can petition to remove the public official from office.
In a command economy __
the central government decides all decisions about production and how to respond to demand/ supply cycles.
What incentives do buyers and sellers have?
Sellers try to maximize profits. Buyers try to maximize satisfaction
What is a checking account?
An bank account that does not appreciate but is a place for holding money. It has levels of interest that do not exceed 5% and depend on credit rating.
26th amendment
18-year-old right to vote
Referendum
The process by which a proposed public measure is voted upon.
What is economic efficiency?
When economies distribute resources that maximize benefits and eliminates waste
Who was Benjamin Graham?
created book: The Intelligent Investor discusses "value investing"
mentor of Warren Buffett
Reserved Powers
The powers that the constitution sets aside for the state governments.
Eminent Domain
The government's right to take control of private property for public use. The government must pay homeowners at a fixed price
What is the assumption of the model of supply and demand?
Buyers and suppliers have perfect information
What does it mean to maximize your utility?
maximize returns from existing money
Difference between banks and credit unions
credit unions: members hold ownership - a nonprofit organization. Paid in the forms of high interest rates for savings and checking accounts
Banking institutions: for profit. provides basic forms of savings and checking accounts that are either taxed or untaxed in the form of student aid in Student SAVINGS ACCOUNTS
Are public defenders provided for appeals?
The Sixth Amendment generally does not include a right to court-appointed counsel in post-conviction proceedings, such as appeals and habeas corpus petitions. The Supreme Court has held that defendants do not have a right to appointed counsel for discretionary appeals.
Double Jeopardy
The act of bringing a person to trial a second time for the same crime.
The Double Jeopardy Clause in the Fifth Amendment to the US Constitution prohibits anyone from being prosecuted twice for substantially the same crime.