Civics and Economics Comprehensive Review

Flashcards covering key terms for the Bill of Rights, state and city government structures, market economic principles, macroeconomics, federal funding, fiscal policies, and foreign affairs.

Bill of Rights

The first ten amendments to the U.S. Constitution, existing to protect individual liberties and limit government power.

Delegated Powers

Powers specifically granted to the federal government by the Constitution.

Reserved Powers

Powers not granted to the federal government that are kept by the states or the people.

Concurrent Powers

Powers shared simultaneously by both the federal and state governments.

Full Faith and Credit Clause

A constitutional provision requiring states to recognize and respect the public acts, records, and judicial proceedings of other states.

Extradition

The legal process by which a fugitive from justice in one state is returned to the state where the crime was committed.

Sovereign

Possessing supreme or ultimate power; in a local government context, having independent authority over a territory.

Town Government

A form of local government that covers a physical area and provides services to residents, often seen in specific regions like New England.

Township

A division of a county that serves as a unit of local government.

Special District

A local government unit created to provide a specific service, such as water, fire protection, or education.

Village/Borough Government

A smaller level of municipal government established for more compact communities.

Home Rule

Power delegated by the state to local government units to manage their own affairs and create their own charters.

Mayor-Council (weak mayor)

A type of city government where the mayor has limited executive authority and the council holds most of the power.

Mayor-Council (strong mayor)

A type of city government where the mayor has significant authority, including the power to hire/fire department heads and veto council acts.

Commission

A city government system where elected officials serve as the heads of specific city departments and act as the legislative body.

Council Manager

A city government structure where an elected council hires a professional manager to oversee daily administrative operations.

Law of Supply

Economic principle stating that as the price of a good increases, the quantity supplied by producers increases.

Law of Demand

Economic principle stating that as the price of a good increases, the quantity demanded by consumers decreases.

Equilibrium

The point on a graph where the quantity supplied equals the quantity demanded at a specific price.

Surplus

A market condition occurring when the quantity supplied is greater than the quantity demanded.

Shortage

A market condition occurring when the quantity demanded is greater than the quantity supplied.

Stocks

Units of ownership in a corporation that offer benefits like dividends but carry high risk.

Bonds

Certificates representing a loan made by an investor to a borrower; they offer lower risk and steady interest payments.

Mutual Funds

Investment vehicles that pool money from many investors to buy a diversified portfolio of securities managed by professionals.

Three Goals of Macroeconomics

Economic growth, price stability (low inflation), and full employment.

GDP

Gross Domestic Product; the total market value of all final goods and services produced within a country's borders in a specific time period.

GDP Per Capita

A country's total GDP divided by its total population, used to measure average economic output per person.

Real GDP

Gross Domestic Product adjusted for inflation to reflect the actual value of goods and services produced.

Consumer Price Index (CPI)

A measure that tracks changes in the price level of a basket of consumer goods and services to measure inflation.

Inflation

A general increase in prices and a corresponding fall in the purchasing power of money.

Progressive Tax

A tax system where higher-income earners pay a higher percentage of their income in taxes.

Proportional Tax

A tax system where everyone pays the same percentage of their income regardless of how much they earn.

Regressive Tax

A tax system where lower-income individuals pay a higher percentage of their income in taxes than higher-income earners.

Continuing Resolution

A temporary funding measure passed by Congress to keep the government operating when a regular budget has not been signed.

Government Shut Down

The suspension of non-essential government services due to a lack of approved funding legislation.

Mandatory Spending

Federal spending required by existing laws, such as Social Security and Medicare.

Discretionary Spending

Government spending set by annual appropriation bills, including categories like defense and education.

Supplemental Spending

Additional government funding approved outside of the regular budget for emergencies or unforeseen costs.

Intergovernmental Debt

One of two sections of U.S. debt; it consists of money the government owes to its own agencies and trust funds.

Public Debt

One of two sections of U.S. debt; it consists of money owed to individuals, corporations, and foreign governments.

Fiscal Policy

The use of government spending and taxation to influence the economy.

Reserve Requirements

A monetary tool representing the amount of funds that a bank must hold in reserve against specified deposit liabilities.

Discount Rate

The interest rate that the Federal Reserve charges commercial banks for short-term loans.

Open Market Operations

The buying and selling of government securities by the central bank to regulate the money supply.

Absolute Advantage

The ability of a country to produce more of a good or service than competitors using the same amount of resources.

Comparative Advantage

The ability of a country to produce a good or service at a lower opportunity cost than another country.

Opportunity Cost

The value of the next best alternative that is given up when making an economic decision.

Trade Surplus

A condition in which a country's exports exceed its imports.

Trade Deficit

A condition in which a country's imports exceed its exports.

UN General Assembly

The main deliberative organ of the United Nations where all member states have equal representation.

UN Security Council

The UN organ primarily responsible for maintaining international peace and security.

Security Council

The primary UN body responsible for international peace, consisting of 15 members.

Globalism

The concept of economic and foreign policy based on global cooperation and interconnectedness.

Protectionism

The economic policy of shielding domestic industries from foreign competition through tariffs or quotas.