Current Issues #2 - The Economy

T or F: Ever since the founding of the united States, Americans have been at odds over what role the federal government should assume in directing economic policy.

True

What percent of voters cited the economy as the most important issue facing the country in the 2016 presidential election?

52%

What is the name of the central bank of the U.S.

The Federal Reserve

What does the federal reserve control which determines how much consumers pay for homes, cars, and other good purchased with the assistance of loans?

They control interest rates

List the four type of taxes the federal government collects.

Individual income, Social security, corporate income, estate/gift tax.

T or F: The U.S economy is the single largest national economy in the world

True

What was the GDP of the U.S in 2019?

21 Trillion

Define Fiscal Policy

The manipulation of gov spending and taxation levels to influence the economy.

Define Monetary Policy

The actions of the Federal Reserve to control the currency supply and interest rates

Define Trade Policy

Trade policy governs the exchange of goods and services between nations

Define Tariffs

A tax on imports

Define quotas

A limit on the number or value of goods that a country can import or export during a certain period.

Define Embargo

A ban on trade with a particular country

T or F: The Constitution contains few words about the appropriate scope of the gov. in the economy.

True

In the 1930s… the role of the gov grew dramatically with the onset of the ____ ______.

Great Depression

What was the name given to the programs created under President FDR that expanded the gov’s role in the economy?

New Deal

What amount per hour was the original federal minimum wage established in 1938

25 cents/hr

Since 2009, what has the federal minimum wage been?

7.25 per hr

T or F: Employers of certain jobs in the U.S are not required to pay their employees the federal minimum wage.

True

What is the min. overtime rate that employers must pay their employees for hours worked over 40 per weeks according to the Fair Labor Standards?

1.5 times regular rate

What has the Fed Gov set as the min age for most non-agriculture work in the U.S?

14 years

Created in 1935, what is the function of the National Labor Relations Board?

It was created to encourage collective bargaining and guarantee free labor practices. They help private sector employees organize bargaining units, investigate charges of unfair labor practices, facility settlements, and decides/enforces cases.

How many times has the federal minimum wage been raised?

22 times

How many states and the District of Columbia have a min wage higher than the federal min wage?

29 and DoC

T or F: In general, minimum wage workers tend to be old people

False

What types of work are two-thirds of minimum wage employees employed?

The service occupations

Nearly the entire feild of Democrats running for president in 2020 has endorsed the idea of a ____ fed min wage

$15

Who has President Trump advocated should determine the min wage?

The States

List three reasons the Democrats, for the most part, have argued that raising the Fed Min age is necessary.

Help the nations vulnerable citizens, provide more income to spend, increase economic activity.

List three reasons Republicans for the most part have argued that raising the federal min wage would be a bad idea

Damage the economy, make it more difficult for businesses to hire employees, and increase the cost for employers and small businesses

What 5 physical systems are included in a nations infrastructure?

transportation, electricity, communication, water treatment, sewage control

How much did local, state, and federal governments combined in the U.S. spend on infrastructure in 2014?

416 Billion or 2.4% of GDP

Of this spending in 2014, what system received the largest share of money

Infrastructure Projects

What fraction of the spending came from local and state governments?

3/4

What fraction of this spending came from the Fed government?

1/4

What U.S President signed the Federal-Aid Highway Act of 1956?

President Dwight Eisenhower

What percent of the cost of the new interstate highway system was paid for by federal government under this act?

90%

Explain the concept of a P3

A private company raised money to design, build, and operate an infrastructure for a contract term that typically lasts 30 yrs. Then the gov makes annual payments to the company throughout the contract

T or F: President Trump supports passing a large-scale infrastructure spending plan

True

List three reasons that supporters of large scale infrastructures spending give when arguing their point

We need to update our infrastructure, boost our economy, and create jobs

List three reasons opponents of large scale infrastructure spending give when arguing their point

Increase national debt, improperly broaden the scope of federal government, and will lead to waste.