What is the economy?
What does the GDP measure?
All government spending in a year (this includes the money spent by citizens of the country and the investments made by businesses in a year).
Define the concept of money.
Money is a made up concept. It is imaginary.
Where does our tax money go?
It goes to three places; the military, social security, and medicaid.
What is globalization?
World coming together in order to trade.
What is inflation?
Sustained increase in the economy
What is an example of a natural resource?
fresh water
Define a market.
A market is a place that sells things (like goods).
Explain in your own words what the tax system is.
Taxes going to the government to pay for everything the government does. It then gets returned as income tax. Also the more money you earn the more taxes you pay.
What is an example of inequality?
Someone getting a job over someone else just because they are wealthy.
What role does inflation play in inequality?
Inflation can cause inequality by the prices rising while middle and lower classes struggle to meet the inflation rate if their wages were to stay the same.
Describe in your own words what supply and demand means?
The less accessible a product is, the higher the price will be.
What is the purpose of the federal reserve?
The purpose is to help preserve and bring order to the U.S. economy. It is also charged with maintaining economic growth, control money and supply.
Compare and contrast the national debt and the budget deficit?
The national debt is the amount of money the government owes (after borrowing/spending) in total over the years. Then the budget deficit is the amount of money they borrowed in one year.
What causes people to lose their jobs?
People being replaced for machines (technology evolving).
In what way does minimum wage try to protect against inequality?
It prevents employers from extremely underpaying their workers and gives room for wage increase
How did the economy get started?
People began trading and later on, it became a business. That leads to competition because, more and more people would want to get a product that is higher quality (leading to more profit).
What would it be like to live without a federal reserve?
We would not have someone to control the money supply, and keep everything in order.
Which federal program does the government spend most of tax money on?
Social Security.
How does the global trade system work?
Exchange of goods between different countries. Ex; the iPhone.
What is one negative effect of the current US healthcare system?
Insurance companies make things confusing so people cant file claims against them and claim their insurance
What occurs when the government regulation does not do it's job?
Businesses would not be protected as well as they should be (mostly the employees).
What is a recession?
A decline in the GDP.
What is fiscal policy?
When government regulates taxes and controls spending levels to make sure the economy is stable.
What was China’s boom economy?
China’s boom economy is the idea that China has contributed a lot to the US economy. They have given employment to people who were seeking jobs. It impacts people in China who work many hours for little pay and also the people who try to get manufacturing jobs.
How can globalization lead to inequality? (Talk about what happened in Detroit)
People have lost their jobs in the states for example due to the effect of globalization which companies move to another country. 8 million jobs were lost in manufacturing in the midwest. For Example during 1979 to 2009 in Detroit