Test 1 Consumer Econ

the 3 economic roles

worker, consumer, citizen

4 consumer rights

safety, to be informed, to choose, to be heard

federal laws are also called

statutes

who coordinates all the federal agencies that protect consumers

US office of consumer affairs

name the four types of economic systems

traditional, command, capitalist, mixed

which economic system does the US have

mixed

what are the (3) roles for the government in the economy

regulating business, providing services, redistributing income

four examples of resources

land, labor, capital, technology

the five characteristics of the American Economy

Government’s role, free enterprise, freedom of choice, private property, competition

the two kinds of inflation

demand pull (people want to buy more so cost increases) | cost-push (higher cost to make things make prices higher)

GDP stands for

gross domestic product

four groups that help determine the CPI

food, house, clothes, transportation

the two categories of income

personal, disposable

another name for the negative balance of trade

trade deficit

what do we call when we compare what the dollar is worth in another country

exchange rate

what inflation are we experiencing right now and why

cost push: high housing costs

the tasks (3) that the governments do on all levels

provide public services, regulate business, redistribute income

in the US we pay taxes on what two identification principles?

benefit principle, ability to pay principle

Name the three types of tax rate principles in the US

proportional, progressive, regressive

what are the two payment principles in the US

direct and indirect tax

example of direct tax

income tax

example of indirect tax

sales tax

four types of taxes in the US

sales, property, excise, social security tax

the government spends ¾ each dollar on what

human resources (unemployment, welfare)

states spend 1/3 each dollar on

education

two reasons why nations trade

acquiring resources, benefiting economically

positive benefits of foreign trade

foreign specialties, lower prices, improved quality

three negative benefits on foreign trade

trade deficit unemployment, poor quality

people who want to limit foreign trade

protectionists

three ways to limit foreign imports

tariffs, quotas, embargoes

the three types of tariffs the US has

punitive (penalize countries)

revenue (put on foreign goods to make profit)

protective (stop foreign competition)

examples of the three tax rate principles

proportional: sales tax

progressive: federal income tax

regressive: property tax

the first tax form you fill out when you get hired at a job

w-4

what tax form does your work send you to fill out your taxes

1040