Economics Part 1
A tax on a good imported from another country is known as a
tariff
Name one problem workers faced during the 1800s when America followed a laissez-faire economic system
child labor
pollution
low wages
dangerous working conditions
The spread of goods/technology/jobs/resources/money between countries is known as:
globalization
___________ spending funds programs that by law the federal government must spend money on every year
mandatory
A _____________ occurs when the government spends more than it collects over the course of one year
deficit
The economic theory of ______________ economics states that an economy will succeed the best if there is no government regulation of businesses
laissz-faire
Progressive Era
____________ is the term used when American companies make their products in other countries using foreign workers
outsourcing
Every month retired workers age 65 and older receive checks from the Social _________ program
Security
Currently standing at $39 trillon, the total amount of money owed by the United States government is known as its ________________
debt
The person who came up with the idea of laissez-faire economics in the 1700s was
Adam Smith
A nation's wealth is calculated by combining the value of goods and services produced in a year. This is known as
Gross Domestic Product
Why would an American company build its factories in a foreign country
it’s cheaper than producing in the USA
This program provides federal funding that pays for healthcare for adults over 65
Medicare
To raise money the federal government will issue __________. These are basically a form of IOU; the holder of one is paid back with interest after 20 or 30 years
treasury bonds
America's economic system is known as ____________ because it features businesses competing with each other to earn a profit
capitalism
The ______________ program provides healthcare to lower income Americans
Medicaid
Economists that believe in ___________-side economics believe:
1. governments should cut taxes on wealthiest people/corporations
2. they will take that savings and invest in the economy
supply
An opponent of capitalism, ___________ created the economic theory known as communism in 1848
Karl Marx
_____________ spending is money spent by the federal government on non-essential spending on programs agreed upon by Congress (military budget, transportation, housing, education)
discretionary
Economists that believe in _________-side economics believe:
1. when necessary the government should spend money to help the economy/create jobs
2. increase government debt to help people
demand