Chapter 10- and Test 5 Flashcards
Two main purposes of government
Punish evil and reward good
An stablished system of political administration by which a nation, state, society, or organizations is ruled
Government
An economic system based upon collective ownership and control of national resources
Socialism
Governmental practices which have harmed economic systems over centuries
- Excessive taxation
- Inflation and debasement of money
3.Excessive public expenditure
4.Excessive regulation and direction of the economy
- Political plundering of the economy
Large, complex organizations made up of appointed officials and their numerous agencies and departments
Bureaucracies
Roosevelt’s program that people viewed as a financial saviour during the Great Depression
New Deal
Founder of the Keynesian school of economics that said that we should spend all of debt
John Maynard Keynes
Philosophy based on the belief that a society’s economic problems can be better solved by “expert planners” than by the natural, automatic corrections made by free market
Keynesianism
The lion of Washington
Davy Crockett
How does the economists call the recurrent fluctuations in the level of economic activity
Business cycle
The four main components of a business cycle
Expansion, peak, recession, and trough
Part of the business cycle that shows industries increase the amount of goods they produce
Expansion (boom)
What does the expansion cause on a business cycle?
Gross domestic product, GPD rise
The value of all finished goods and services produced within a country during a year’s time
Gross Domestic Product, GPD
The value of all finished goods and services produced by a nation’s citizens during a year’s time
Gross National Product, GNP
The highest point of a business cycle, where activity is at its highest
Peak
A period of economic decline
Recession
Recession that is unusually severe and long-lasting
Depression
The lowest point in a business cycle is called…
Trough
Components of the economy that normally change before the rest of the economy
Leading indicators
The two types of inflation
Demand-pull inflation
Cost-push inflation
Inflation that is caused when the demand becomes greater than the supply resulting in shortages
Demand-pull inflation
Inflation triggered when businesses face rising production costs, forcing them to increase the prices they charge for their goods
Cost-push inflation
The most common tool of measurement in the growth of inflation in the U.S.
Consumer Price Index, CPI
Period that serves as a reference point to which prices are compared in the Consumer Price Index
Base period
Economic condition in which high inflation is combined with high unemployment, resulting in stagnation of productivity
Stagflation
The theory that reduction of taxes makes more money available for private investment in capital and research, thereby increasing productivity.
Supply-side economics
Outlines a spending plan and ensures that a person can pay for the things he needs
Budget
Steps for creating a budget
- Know your net income
- Set aside money for the Lord’s work
- Set aside money for savings
- Determine living expenses for each month
Income equals expenses
Balanced budget
The promotion of one’s own nation and government regardless of moral considerations
Nationalism
Economic system based upon public ownership and governmental control of the production and distribution of nearly all national resources
Communism
Father of Communism
Karl Marx
Who wrote The Communist Manifesto?
Karl Marx
Formulated the basic ideas of communism and advocated the overthrow of the free market
Karl Marx
“In order to establish equality, we must first establish inequality”
Das Capital
Property owners
Bourgeois
Common working class
Proletariat
The secret police who intimidated people into telling secrets and informing on their own friends and families
Stasi
People who purposely wrecked machinery
Saboteurs
Any economic system based upon collective ownership and control of many or most national resources.
Socialism
Names given by economists to the different socialistic economic systems
Welfare capitalism
Managed capitalism
Democratic socialism
Market socialism
In what year was gold discovered in california?
1848
Was the gold worth more on the west coast or the east cost?
East cost
Individual who takes justice by his own hands
Vigilante
Which sector was the most decision maker?
Private sector
The governments role placed on an economy would be micro or macro?
Macro
President during the Louisiana purchase
Thomas Jefferson
Year of the Louisiana purchase
1803
Published thoughts on scarcity
Edmund Burke
President who popularise the idea of supply-side economics
Ronald Reagan
Years for the CPI base period
1982-1984
Which president talked about “the great society”?
Lyndon B. Johnson
Year for the Bolshevik revolution
1917
The Bolshevik revolution was laid by what man?
Vladimir Lenin
The Bolshevik revolution opened the door for what type of economic system?
Communism
Dictator who came after Lenin
Joseph Stalin
What did Karl Marx called “a necessary evil”?
Capitalism
Who said “To each according to his abilities, to each according to his needs”
Karl Marx
Which Berlin was under communist control?
East
Ilegal system by which investors give money to other investors
Ponzi scheme
Taxes payed directly to the government
Direct taxes
Example of indirect tax
Sales tax
Type of tax that targets the wealthy
Progressive tax
Type of tax that targets the poor
Regresive tax
Type of tax that is flat across the board
Flat tax
Tax that is used to fund both, social security and medicare programs is called what?
FICA tax
Federal insurance program that help people with medical expenses
Medicare
Total amount owe is called what?
National Debt
Types of businesses
- Sole proprietorship
- Partnership
3.Limited liability corporation
4.S corporation
5.C corporation
Legal corporation own by shareholders
Corporation
Communist governments forbid what in an effort to control distribution
Competition
First two thing to set money aside for
Tithe and savings
Before you set your budget, what do you need to know first?
Your income
Which type of income do you have to know before you plan your budget?
Net income
A person can designate a what? to determine how the state is to be divided among people or organizations
Will
Document that directs health care professionals what to do if a person is medical incapacitated
Living will
Gives someone else the capacity to make decisions for the individual if he is not capable of making decisions by himself
Healthcare power of attorney
Gives someone else the capacity to make financial decisions and take control of his finances if the individual is not capable of making decisions by himself
Financial power of attorney
Why is socialism is more dangerous than communism?
Because it is deceptive
Harmful effects of excessive taxation
pg. 169
