Economic systems
A command economic system is another word for what?
A market economic system is another word for what?
Communism and Capitalism
What is the main job of the Federal Trade Commission (FTC)
To promote fair business practices
What does GDP (Gross Domestic Product) Measure
The total number of goods and services produced by a country in a year
NAFTA Eliminated what between who?
NAFTA Eliminated trade barriers like tariffs between the United States, Canada and Mexico
What is an alliance?
an agreement between nations
Who is the father of communism?
Karl Marx-author of the Communist Manifesto
What is a monopoly
When a single business becomes so successful that all of its rivals go out of business and they are the only producers of a certain good or service
How does the executive branch check the legislative branch?
Presidential veto
If you have a low supply and high demand what is going to happen to prices?
increase
What is a sanction?
An effort to punish a country with trade barriers
The United Staes MOST CLOSELY resembles this type of economic system
Mixed economy
What is a recession?
when the economy shrinks rather than grows
What is a tariff
a tax on imports
Why is competition important in an economy?
encourages lower prices, higher quality goods and services, innovation and new inventions for business owners to have a competitive advantage
What are the characteristics of a strong economy?
Economic growth, no inflation, increased consumer spending and low unemployment rates
What is Laissez-faire?
A hands off approach to economic and societal issues
What does the Consumer Price Index (CPI) measure?
The average change over time in the prices paid by consumers for a basket of goods and services
True or false: Jessica quit her job as a secretary to travel the world with her husband for 2 years. She is not actively searching for a job. Is Jessica considered ”unemployed”
No because she is not actively searching for a job.
Explain isolationism and internationalism
isolationism= stay out of world affairs
internationalism= get involved in world affairs
Favorite subject in school?
government duh
Explain the difference between communism and capitalism
communism=full government control
capitalism=individuals (consumers) and businesses control the economy
What is one responsibility of the Federal Reserve or the “fed”
Controlling the money supply
fun summer plans?
Go to a couple orioles baseball games
What does the Red Cross do?
assist victims after a tragedy
what would be a characteristic of an economic downturn?
decreased production of goods and services, higher inflation