Studied by 120 peoplefiscal policy
a government's various means it uses to raise and spend money and thereby influence the nation's economy
progressive tax
what kind of tax increases in accordance to a persons income? (the higher the income, the higher the tax rate)
regressive tax
what kind of tax is based on a fixed rate without regard to a taxpayer's income?
interest
what is the price one pays to borrow money called?
deficit
what is it called when the government spends more than it earns?
surplus
what is it called when a government earns more than it spends?
Keynes
what english economist proposed the idea that the government should borrow and spend more to improve the economy? (last name only)
demand
when economists say more spending and borrowing is required to improve the economy, this is called ? side economics
supply
when economists say lower taxes instead of greater spending is needed to improve the economy, this is called ? side economics
dont interpret
what is the first step to interpreting something?
what do i see
what is the second step to interpreting something?
whats happening
what is the third step to interpreting something?
look at the words and define them
what is the fourth step to interpreting something?
what do the words have to do with what you see and whats going on
what is the fifth step to interpreting something?
interpret it
what is the sixth step to interpreting something?
purchasing power parity
what does PPP stand for?
please as many people as you can, displease no one
what is the first rule of politics
power
what is the one word definition of politics?
old age, survivor, disability insurance
what does OASDI stand for?
entitlements
benefits that federal law says MUST be payed to all those who meet eligibility requirements
gross domestic product
what does GDP stand for?
inflation
what is it called when prices increase, and the value of money goes down?
deflation
what is it called when prices decrease, and the value of money increases?
recession
when there is an absence of growth and the economy shrinks, it is called a:
monetary policy
what policy involves the money supply and the availability of credit in the economy?
open market operations
the process that involves the buying or selling of government securities (bonds) from the nation's banks
discount
the ? rate is the rate of interest a bank must pay when it borrows money from a federal reserve bank
50k
what is the MEDIAN yearly salary in the U.S.
1.90
what is the WORLD'S poverty line in $ a day?
90k
what is the AVERAGE salary in the US?
economics
a study simply defined as: where you learn how to maximise scarce resources
10k
what is the MEDIAN salary in the WORLD (PPP)
OASDI
what is the LARGEST expense of the federal government?
23
what percent does OASDI take from the FEDERAL budget? (think: how many cents of the dollar?)
pay back debt/borrow more
2)print money/open market operations to shrink money supply
3)raise tax/cut tax
4)raise spending/lower spending
5)raise intrest rate/lower intrest rate
LIST all 5 OPTIONS the government has to tackle the debt
C+G+I+(X-M)
fill in the GDP equation: GDP = ...
abel, baker, and charlie
who are the three original characters from the fish book?
capital
what is the term for something created not for its own sake, but to make something else/earn money (ex: the net from the fish book)
FED
nickname for the US federal reserve bank
24 trillion
what is the current estimated US GDP?
30 trillion
what is the current estimated US national debt?
335 million
what is the us population?
7.9 billion
current world population
federal individual income tax
from what tax does the federal government earn MOST of its revenue?
48
what percent does the US government earn from the federal individual income tax? (think: how many cents of the dollar?)
reserve requirement
what is the name for the amout of money that the federal reserve board determines banks must keep "in reserve"
full employment price stability economic growth
what are the three main goals the Federal Government seeks to achieve in the economic realm? (according to chapter 16.4)
discretionary spending
a term also known as controllable spending; describes spending on specific budget items that congress and the president can control
mandatory spending
a term also known as uncontrollable spending; describes budget items that congress cannot control the amount spent because of laws and entitlements
public debt
term for the total outstanding indebtedness of the federal government
payroll tax
a tax applied to a percent of a persons salary, matched by their employer
excise tax
tax laid on the manufacture, sale, or consumption of goods and/or the preformance of services
estate tax
levy imposed on the assets of someone who dies (ex: ryan inheriting mr fredericks car AFTER he dies)
gift tax
tax imposed on a gift from one living person to another (ex: mr frederiks giving ryan his car BEFORE he dies)
customs duty
taxes on goods IMPORTED to the united states from abroad
net
what capital does able create to catch more fish?
underconsumption
when one chooses to consume less in order to potentially consume more in the future (think: able did not eat fish for a day to make his net)
skim question read recite review
what does SQ3R stand for? list each step
principal
the original amount in an investment, or the original amount of money before intrest is called what?
fiat
? currency is money that has no intrinsic value, and cannot be redeemed for precious metals (on its own it has no value; ex: paper money)
12
how many federal reserve (district) banks are there?
minting
? is the process of making coins
medicare
health care intended for the ELDERLY
medicaid
health care for the POOR
70
what percent of the federal budget (think: the dollar) is spent on entitlements?
entitlements intrest payments on national debt big ticket items
LIST the three examples of uncontrollable/mandatory spending in the US budget?
expenditures
term for the money going OUT of the federal government
revenue
term for the money EARNED by the federal government
federal insurance contribution act
what does FICA stand for?
federal unemployment tax act
what does FUTA stand for?
35
combined, what percent does FUTA and FICA add to the us revenue? (think: how many cents of the dollar?)
consumption
in the GDP equation, 70% (variable C), stands for what? (this explains what 70% of the GDP is used on)
government
in the GDP equation, 20% (variable G) stands for what? (this explains what 20% of the GDP is used on)
28
what percent of the us budget is spent on medicare and medicaid COMBINED (think: how many cents of the dollar?)
credit
term for capital that is loaned out/borrowed
investment
term for risking savings to possibly produce more later
savings
term for an unused fund of money; underconsumption that is not used
the power to make things the way you want them to be
what is the LONG definiton of politics
brainwashing
getting someone to think something, without letting them think about it
THINK
what was the focus from the first day of class?
Note
Flashcard