chapter 10, government and the economy

Question 1

an establishment system of political administration by which a nation, state, society, or organization is ruled

Answer 1

government

Question 2

two primary purposes of government

Answer 2

to punish evil, and reward good

Question 3

five ways by which governments can damage their economies

Answer 3

excessive taxation
inflation and debasement of money
excessive public expenditure
excessive regulation and direction of the economy
political plundering of the economy

Question 4

name the economic policy advocated by president franklin d roosevelt

Answer 4

new deal

Question 5

founder of the keynesian school of economics

Answer 5

maynard keynes

Question 6

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 a free market

Answer 6

keynesianism

Question 7

who responsibility is it during times of recession to “prime the economic pump” even if it means running up the massive budget deficits and national debt

Answer 7

governments

Question 8

an economic system based upon collective ownership and control of national resources

Answer 8

socialism

Question 9

large, complex organizations made up of appointed officials and their numerous agencies and departments

Answer 9

bureaucracies

Question 10

influential economist of the early 20th century who rejected the idea that supply creates its own demand

Answer 10

john maynard keynes

Question 11

early american representative who claimed that politicians do not have the right to dole out public money as they see fit

Answer 11

davy crocket