Types of Economic Systems
Father of Communism
Who is Karl Marx?
The historical event that changed the government involvement in the economy.
What was the Great Depression?
This Constitutional Amendment that provides for the Federal Government's largest source of income.
What is the 16th amendment? (income tax)
Who has the power to spend federal money?
Congress
Another name for a market economy
What is capitalism?
This occurs when nearly every person who wants to work can get a job.
What is full employment.
The date federal taxes must be filed.
What is April 15th?
the total of all the money the Government has borrowed, plus interest.
Public Debt
America's chief trading partner.
Who is China?
If the federal government spends more money than it receives in revenue in a single year, then it is running one of these.
What is a deficit.
Type of economic system in the United States today.
What is a mixed economy? (economy where the government and private enterprise each play a key role)
This is the government agency that oversees our government's monetary policy.
What is The Federal Reserve Bank of the United States, or "The Fed."
A type of tax takes a larger share of a poor person's income than a wealthier person's income
What is a progressive income tax? (Social security is a regressive tax as it is paid at the same rate regardless of income)
an economic theory that states lower taxes increases the supply of money and stimulates the economy?
What is supply-side economics? (Reaganomics)
U.S. trade agreement with Mexico and China
North American Free Trade Agreement (NAFTA)
If this measure of all economic activity in a country begins to decline, then that country is likely headed into an economic recession.
What is GDP, or Gross Domestic Product.
Chinese plan to modernize quickly.
Great Leap Forward (1958-1960). It was a disaster and led to the Great Chinese Famine.
This government agency tries to ensure the safety of workers on the job.
What is OSHA (Occupational Safety and Health Administration).
the type of tax placed on a tourist's purchases.
What is a customs duty?
benefits federal law says must be paid to anyone who qualifies for them.
What are entitlements?
Created after WWII to create fiscal stability, promote cross-border investment, and reduce world poverty
What is the International Monetary Fund (IMF)
helps set trade rules, broker trade agreements, and settle trade disputes
World Trade Organization
Difference between socialism and communism.
What is socialism believes economic equality can be achieved through peaceful and democratic means where communism believes that class struggle and violent revolution is necessary.
What effect would be felt in the economy by lowering the discount rate?
It would increase the flow of money and stimulate the economy (cause the economy to grow)
This is a tax placed on certain extra/unnecessary items like cigarettes, alcohol, and gasoline.
What is an excise tax. (some are known as hidden taxes, luxury taxes, and sin taxes)
These are the two types of federal spending AND give an example of each.
Controllable Spending and Uncontrollable Spending
Make loans to developing nations to build infrastructure and provide advice and training.
What is the World Bank?
When the federal government cuts taxes, increases spending, lowers interest rates, and buys up a huge amount of government bonds from banks during an economic downturn, they are providing the economy with this.
What is Economic Stimulus?