Rule of law
What principle of law guarantees laws are enforced fairly and apply to everyone?
Equal application of law
What is the name for the invisible force that manages the movement of the economy?
Invisible Hand
A person who favors government action to achieve equal opportunity and equality for all
A Liberal
What is the government supposed to eliminate
externalities
Why did the Founders believe limited government was necessary?
They feared tyranny and believed government power must be restricted to protect individual liberty and prevent abuse
What concept of law protects the individual from being punished without fair trial?
Due process; Fifth Ammendment
What happens when demand goes up randomly?
supply will go up (usually)
A person who advocates for the preservation of traditional institutions, practices, and values.
A Conservative
Which party prefers less government involvement in the economy
Republican
How does the U.S. Constitution limit the power of the federal government? Name at least two ways.
The Constitution limits government by separating powers among the three branches and by federalism, dividing power between national and state governments.
Why is rule of law important in a stable economy?
It creates predictable rules for contracts and property rights
2 parties engage in trade because they both see a benefit in the transaction?
Voluntary Exchange
A person who advocates for a government with all power concentrated in one person or small group, who demand obedience and suppress individual freedom
An Authoritarian
Which of the following is NOT a role of government in a market economy: Provide public goods, set rules of exchange, nationalize monopolies
nationalize monopolies
What role does the Bill of Rights play in ensuring limited government?
The Bill of Rights limits government by protecting individual freedoms from government interference
What law principle limits government powers by requiring leader to follow pre established rules
Limited Government
The economic system where decisions are made based on individual consumers instead of the central government?
Market Economy
A person who believes in maximizing the individual freedom/liberty.
A Libertarian
Is the police is a product of the government’s role in market economy
yes
How do checks and balances help prevent one branch of government from becoming too powerful?
Checks and balances allow each branch to restrict the others’ powers, preventing any single branch from becoming too powerful.
This rule of law principle requires that laws are clear, well known, and consistently enforced so businesses can plan accordingly
Legal Transparency
In a free market economy, what key idea allows it to succeed?
Consumer Demand
Which ideology believes in little to no government interference in the economy and instead giving private businesses all the power to make choices?
Capitalism
True or False, the FDA is created to promote competition.
false
How does popular sovereignty relate to limited government?
Popular sovereignty means the government’s power comes from the consent of the people, which limits government authority and allows citizens to hold leaders accountable.