Federal Reserve and Taxes
Types of Economies
GDP & Standard of Living
Supply and Demand
Other Econ Vocab
100
What is the main reason the government collects taxes.
To pay for services provided for the public.
100
How are prices determined in a free market economy?
By supply and demand
100
If a country has many natural resources, what 2 other things are probably true about that country?
The Country has a higher GDP.
The people will have a higher standard of living.
100
The amount of goods that are available to be sold is known as the....
Supply
100
What do we call a person that starts a new business, and must take all the risks of starting a business?
Entrepreneur
200
Where does the federal government get most of its tax revenue from?
Individual Income Taxes
200
Describe a mixed economy.
An economy where people make most of the decisions, but there are some government regulations.
200
In which country would the people most likely have the lowest standard of living?
Afghanistan
200
How much people want a certain good and how much they are willing to pay is known as....
Demand
200
Every time we make a decision, we are forced to give up something. The thing we give up is known as the...
Opportunity cost
300
What is the primary function of the Federal Reserve?
To regulate the nations banks.
300
Describe a command economy.
Economy where the government decides what goods to produce, and how much goods are sold for.
300
Which 2 countries mostly likely have the highest standard of living?
United States and Germany
300
What is it called when the demand for a good/product is greater than the supply available to sell?
Scarcity
300
Why did congress pass the Sherman Anti-Trust Act in 1890?
To ensure that there was competition between businesses.
400
Besides regulating banks, what are the other functions of the Federal Reserve?
Tell banks how much money to keep on hand.
Set interest rates (8 times per year)
Control how much money is produced.
400
Explain why there is no such thing as a true free market economy.
All economies must have some government regulations.
400
What can you assume about the amount of natural resources, and the standard of living in the Russian Federation, compared to Germany.
The Russian Federation probably has fewer resources and a lower standard of living.
400
When the supply of a product is greater than the demand for that product.
Surplus
400
What is the role of competition in the economy?
Gives businesses a reason to constantly improve their services and goods.
500
What is a stock share?
How does selling stocks help the economy?
A portion of a company that people can buy.
It allows corporations to raise large amounts of money.
500
What type of economy allows people to have private businesses, but also has the government to regulate business and provide services?
Mixed Economy.
500
What country probably has a standard or living similar to that of the Russian Federation?
China
500
According to the law of demand, what happens when prices decrease?
Demand increase
500
What does competition do to prices of goods?
Competiton lowers prices.