U.S. Policies
Mandatory spending in the US examples
What is Social Security, Healthcare, or Medicaid?
Quotas
What are limits placed on the quantities of a product that can be imported?
Discretionary spending in the US examples
What is defense, education, scientific research, or environmental protection?
Tariffs
What is a tax placed on an import to increase its value in the domestic market?
Outsourcing
What is the business practice of hiring workers in another country?
Price floor and price ceiling
What is the lowest legal price and the highest legal price items can be sold for?
What is an country more efficient and best at producing an item?
Net interest
What is interest paid by the government minus the interest and investment income it receives?
Specialization
What is a country or region producing things they do best and they trade those items with other countries who specialize in other producst?
Interdependence
What is the specialization and division of labor that leads to greater productivity?
Fiscal policy
What is the use of government spending and taxation to influence the economy?
Protectionists
Who claims tariffs and quotas are good and wants a more domestic market and jobs?
Mercantilism three principles
1. Wealth is measured in gold
2. Colonies produce raw materials for another country
3. Exports more then imports.