official gov study set

international business machines

IBM

to connect thinks accurately

What does it mean to think?

serendipity

What is the accidental discovery of a prepared mind?

purchasing power parity

What is PPP?

economics

What is the effort to maximize the availability of limited resources to meet as many human demands as possible?

capital

A piece of equipment that is not built for its own sake before the sake of something desired/wanted

investment

the action of putting savings into capital

consumption

using something for its own sake, not to make more money; spending/using up something without replacing it

bank

a store that sells money

interest

the price of money

politics

“power”; the power to make things the way you want it to be (power over people)

savings

extra production stored (no gain/loss); sacrificing and keeping what you have made

credit

Capital loaned out/borrowed

principal

First lending/borrowing and credit (the amount of money wanted back without interest)

savings, investment, credit

SIC

inflation

when the prices in the economy go UP, and the value of money goes DOWN

deflation

when the prices in the economy go DOWN, and the value of money goes UP

expenditures/outlays

federal government spending

Skim, Questions, Read, Recite, Review

SQ3R

Old Age Survivors Disability Insurance (a.k.a. Social Security)

OASDI stands for what?

FICA

Federal Individual Contribution Act

FUTA

Federal Unemployment Tax Act

fiscal policy

the various means the government uses to raise and spend money and thereby influence the nation’s economy

individual income tax

 A tax levied to each person's total income during the previous year, fewer exemptions and deductions

payroll tax

A tax applied to a percentage of a person's salary, matched by the employer, to fund specific social insurance programs conducted by the government

corporation income tax

A tax levied on all the earnings of a business, less its operating costs and authorized deductions

excise tax

A tax placed on the manufacturer, sale, or use of goods and/or for services rendered

custom duties/tariffs/import taxes

Taxes levied on Goods imported into the United States from other countries

estate tax

A tax applied to the estate/assets of a recently deceased person

gift tax

A tax applied to sizable monetary gifts between living individuals

progressive tax

the higher one’s income, the higher the tax rate

regressive tax

a tax levied at a fixed rate, without regard to the level of a taxpayer’s income or his/her ability to pay them

deficit

 the shortfall between income and outgo

surplus

more income than outgo

public debt

 the total outstanding indebtedness of the Federal Government

entitlements

Benefits that federal law says __must__ be paid to all those who meet the eligibility requirements

GDP = Gross Domestic Product

The total value of all final goods and services produced in the country each year

monetary policy

A process through which the government can influence the nation's economy through changes in the money supply and the availability of credit

open market operations

 a process that involves the buying or selling of government securities, such as bonds, from and to the nation’s banks the amount of money that the Federal Reserve Board determines banks must keep “in reserve” in their vaults or on deposit with one of the 12 Federal Reserve Banks

discount rate

the rate of interest a bank must pay when it borrows money from a Federal Reserve Bank

 $60,000

median in the US

$70, 000

Mean in the US

$10,000

Median worldwide

 $18, 000 ($75 a day)

Mean worldwide

Newark, Jersey City, Paterson

The most populated cities in NJ are (in order)

8 billion

Worldwide population

335 million

US population

1. Don’t interpret it

2. What do I see?

3. What’s happening?

4. Look at the words & define them

5. What do the words and what I see have to do with what’s happening?

6. Interpret it.

6 Steps to Interpreting a Political Cartoon are:

Option 1: spend/consume, increasing demand

Option 2: save and increase production, increasing income

economic growth is caused by…

1. Save → -5% in the US

2. Consume → 70% in the US

3. Lend

4. Invest

5. Combination of the 4

What are five options for society?

$12,000 and $24,000

US poverty line for 1 person and 3 people

$700-1000 for 1 person ($2-3 per day)

worldwide poverty line

make as many people happy as you can; displease no one

What is rule #1 of politics

US

Which country spends the most globally on education?

39

What is the US rank math out of the top 15 industrial countries?

18

What is the US rank in science?

25

What is the total US rank in math, literacy, and science combined?

$15,000

How much does the US spend on K-12 per student?

Finland

Which country spent the least on education in 2007 as a country, ranking at the top in math and science

 China, India, US, Russia

Most populated countries in order are…

$30,000

Top 1% of the world’s income

demand/spending

needed in order to spur economic growth, but it is not what achieves growth

$4.6 trillion

What is the current federal revenue?

67

How old must someone be to fulfill OASDI requirements for full retirement benefits

mandatory spending

uncontrollable spending is also known as…

discretionary spending

controllable spending is also known as…

$31.5 trillion

What is the total US debt today?

1973: “Roe v. Wade”

killed off millions of future workers that could have advanced the US economy; increasing poverty

1960’s: “War on Poverty”

the federal government began to pay the unemployed, encouraging unemployment

1. Entitlements

2. Large Ticket Items Under Contract

3. Interest Payments on Debt

Uncontrollable/Mandatory Spending includes:

Revenue

the money taken in by a government, income is money taken in by a company

0\.8 trillion debt

How much debt did the government accumulate in 200 years from 1776-1976?

1. Increase / decrease taxes (fiscal policy)

2. print / not print more money (monetary policy)

3. Increase / decrease spending (fiscal policy)

4. Raise / lower interest rate (monetary policy)

5. Increase / decrease production (GDP) (neither)

6. Borrow more / less money (monetary policy)

7. Default on the debt = not paying value back (monetary policy)

Options if there is a deficit are…

Benjamin Franklin

Who said “in this world nothing can be said to be certain, except death and taxes”?

1. Used only for public purposes

2. Tariffs can only be placed on imports

3. Direct taxes must be evenly proportioned throughout the States

4. All indirect taxes levied must be at the same rate in all parts of the country

4 Expressed Limits on Taxing Power:

taxes and other revenue

What is the title of 16.1?

borrowing and the public debt

What is the title of 16.2?

shakespeare

Who said “neither a borrower nor a lender be”?

new deal

a series of government spending/job programs to stimulate the economy

spending and the budget

What is the title of 16.3?

congress

Who holds the “power of the purse”?

congress’s budget office

CBO

office of management and budget

OMB

13

How many appropriations does Congress pass each year?

fiscal and monetary policy

What is the title of 16.4?

George H.W. Bush

Who is the 41 president of the US?

1. Full employment

2. price stability

3. economic growth

What are the Government’s 3 Main Economic Goals

John Maynard Keynes

Who introduced his demand-side economic idea during the Great Depression?

an idea is born

Fish economics chapter 1 title

sharing the wealth

Fish economics chapter 2 title

the many uses of credit

Fish economics chapter 3 title

economic expansion

Fish economics chapter 4 title

prosperity loves company

Fish economics chapter 5 title

put it in the vault

Fish economics chapter 6 title

a republic is born

Fish economics chapter 8 title

government gets creative

Fish economics chapter 9 title

10% or more

How much income do Americans typically save?

12

How many senators was in the Republic of Usonia?

Bongobians

What is the name for the fish thieves/plunderers?

crisis

Franky Deep said, “never let a ___ go to waste.”