INDIVIDUAL WEALTH
What does GDP stand for? What does it mean?
a. Explain the effect it has on the economy.
GDP stands for gross domestic product. It is a measure of how the economy is doing in a country. The amount of products and services in the country that were produced in a certain amount of time.
What is the difference between cash and money?
Words you need to use: Cash, Money, Value
Cash is actual physical currency, while money is the belief and trust that there is actual value.
What is the role of our government in our economy?
Words needed: Regulate, Laws, Taxes, Tax rates
The role of our government is to regulate our economy with laws that affect our economic activities. The government also balances through things like taxes and policies. Our government could be thought as the chaperone to our economy, if things get out of hand they have different methods like controlling interest and making more money.
Which of the following terms best describe the concept of globalization?
a. International business operations
b. International agricultural protection
c. Global Warming
d. Universal healthcare
a. International Business Operations
What are the three main causes of inequality?
a. Elaborate each cause.
The three main causes of inequality are globalization, technology, and government.
Globalization = Globalization is the process of interaction and integration among people, companies, and the government worldwide. It causes inequality because companies outsource jobs which means there are less jobs for low skilled workers. Technology = Examples of technology are computers, mobiles, etc. It is used daily as a tool for various purposes. It causes inequality because people lack the new tech skills to get certain jobs. A lot more is required to work a job and low skilled workers can’t keep up.
Government = Government is a kind of system that governs an organized community. It causes inequality because the government influences the flow of income yet doesn’t do so in a way that benefits low-income workers.
What are the three major things that taxes pay?
The military, Medicare and Medicaid, and social security.
What causes a recession?
Words you need to use: Inflation, Optimism, Economy
Recession is two consecutive quarters of negative GDP growth. In other words a recession is when there is a big slow down in economic activity. This can be caused by inflation or lack of optimism that people have in the economy.
How do we balance inflation?
Words needed: Minimum wage, Inflation, Prices
We balance inflation through regulating tax and making sure that as minimum wage increases prices stay the same. Another way to attack this epidemic is fair taxing based on the amount of money that you make rather than establishing equal tax rates.
In what way have jobs in America been outsourced as a result of Globalization?
In your answer be sure to use the words:
Working Conditions
Before globalization, many products were made and sold in the US. However, after globalization, big international companies moved into foreign countries for the production of items because they accepted worse working conditions which left many Americans without jobs.
2. How do minimum wage and inflation affect income inequality?
a. Define minimum wage and inflation and connect it back to inequality.
Minimum wage is meant for low-wage workers to support their family and inflation has to do with all prices increasing. Minimum wage and inflation play a part in inequality because if the minimum wage stays the same and inflation keeps increasing, low-wage workers won’t be able to sustain themselves nor their families. They won’t be able to keep up with prices.
Explain the concept of a free market.
a. Include words: Supply & Demand, Government,
b. Consumer, Product
The free market is the exchange of goods between a consumer and the seller. The pricing is depended on the supply and demand and the regulations by the government.
3) How do banks make money?
Banks get their money from loaning it out and receiving it back with interest attached to it, which end up costing more than the loans themselves. At times people the can’t pay of their loans end up falling into debt which leads to banks making even more money from them. This explains the concept of fractional banking.
Why do the rich get taxed less?
Words needed: Percentage, tax
The rich get taxed more due to the percentage they're being tax remaining the same.
Why is it harder for a low-skilled worker to make a living?
In your answer be sure to use the words:
Globalization
Outsourcing
Relocation
As factories relocated to other foreign locations, many went to China. As many people in China started acquiring these jobs they began building their economy as well as expanding commerce to overseas which is why everything is widely ‘Made In China’ now. As industries and factories were relocated, many people suffered the effects and the economy took a nosedive.
How does inequality relate to income gap?
a. Why is it important?
b. Who is being affected?
Income gap relates to the difference between people who make the most/least money. It is important because the gap is increasing. While the top wealthy class is benefitted, the low class aren’t. The low-wage community aren’t given the opportunities to thrive the way the wealthy are. The low-wage communities are struggling to keep up with inflation as well. What’s causing this rising gap is how the system is ‘rigged’, meaning that the government favors the rich at the expense of the poor. The rich pay lower tax rates but minimum wage hasn't kept up with inflation.
What is barter economy?
A barter economy is the exchange of goods without using money. This is related to trading goods.
What does the Federal Reserve do?
Words you need to use: Federal Reserve, Loan, Money, Banks, Stimulate and Economy
The federal Reserve regulates the US economy. They make sure that they stimulating the economy through different methods. They inspire confidence in people in their economy so they’ll buy more stuff. They can buy more bonds to stimulate the economy and also if needed, they can just print more money. Federal Reserve’s give money to the banks in order for them to loan it out to the people. The chairman of the federal reserve has to do a testimony in front of the Senate explaining the plans the federal reserve has for the economy.
How does our government balance our economy?
Words needed: Balance, Enforcing, Equality
The government balances our economy through controlling private companies and enforcing laws that represent equality for all businesses, while also if needed using the ability to make more money, manage tax rates, and also control credit. Those changes can either speed up or slow down the economy leading to an effect on the level of prices and also employment.
Why has China’s economy grown so much? What effect has this had on the United States economy?
In your answer be sure to use the words:
Jobs
‘Made In China’
Effects
As factories relocated to other foreign locations, many went to China. As many people in China started acquiring these jobs they began building their economy as well as expanding commerce to overseas which is why everything is widely ‘Made In China’ now. As industries and factories were relocated, many people suffered the effects and the economy took a nosedive.
What is healthcare’s relation to inequality?
a. Why is it expensive? Include some of the factors.
Healthcare is providing medical care to individuals or the community. Healthcare inequality is basically correlated with income inequality for the reason being that the low-income group are in worse health than the other group due to the rising cost in healthcare. Factors that make healthcare expensive is pharmaceutical, taxes, private insurance, states regulation.
Give two examples of natural resources.
Trees, water, minerals, soil, anything that is from the earth. Not man-made.
Why is Wall street important?
Words you need to use:
Trading, Economy, Capitalism, Entrepreneurs, Business and Recession
Wall street is important because it influences the economy by being the trading hub for the biggest financial markets in the US. Although people frown upon capitalism, it has helped maintain a big economy. Wall street effects everybody because it funds businesses which allows them to grow. As business grow so will the economy and so will jobs. Entrepreneurs looking for a better future can find that through wall street. However, when there is a recession, it also affects everybody and everyone feel the downside.
How can the government use our tax money to attack the inequality epidemic?
Words needed: Military, Medicaid, Social security, Distribution
The government uses tax for the function of society. However, the distribution of our taxes can be fixed up to help shorten the inequality problem. Rather than spending so much of our tax money on the already strongest army in the world, we can spread out our tax money more to some areas in need. For instance education, transportation, and building manufacturers.
What role do consumers have in deciding which products to buy?
In your answer be sure to include the words:
Supporting
Exploitation
Resources
Companies
The role that consumers have in deciding which products to buy is the role of deciding to invest in companies that make their products in ethical ways. In the current economy, many resources are acquired from poorer countries around the world that are exploited in order for companies to make a great profit off of them. By buying products from companies we are supporting and encouraging their products. As consumers, we have the decision of which companies we support.
Compare and contrast universal insurance to private health insurance.
a. What is universal insurance?
b. What is private health insurance?
Healthcare is providing medical care to individuals or community. Healthcare inequality is basically correlated with income inequality for the reason being that the low-income group are in worse health than the other group due to the rising cost in healthcare. Factors that make healthcare expensive is pharmaceutical, taxes, private insurance, states regulation.
5. Universal insurance = Provides medical service to all citizens regardless if they are able to pay or not. For example, tests costs less in other countries than the U.S. because they have universal healthcare. They also have the same prices for everything.
Private insurance = Health insurance that isn’t marketed by government agencies and are provided by private companies. The majority of Americans receive private health insurance.
Compare = Both systems are effective, efficient, and have access to essential technologies plus medicines.
Contrast = Universal insurance benefits those in great need while private does not. The reason being is that private health insurance shows inequality. It is at a high cost so if you don’t have the money, you will not receive priority treatment.