Chapter 10- Government & the Economy Flashcards
an established system of political administration by which a nation, state, society, or organization is ruled
government
two primary aims of any government should be to
punish evil
reward good
the study of national or international economies and how they are affected by large-scale choices and public policies
macroeconomics
the role of government in a nation’s economy is a form of
macroeconomics
concerns the study of specific components within major economy and how the choices made individuals, households, and businesses affect the economy
microeconomics
an economic system based upon collective ownership and control of national resources
socialism
list some of the governmental practices which have harmed economic systems over centuries
- Excessive taxation
- Inflation and debasement of money
- Excessive public expenditure
- Excessive regulation and direction of economy
- Political plundering of the economy
large, complex organizations made up of appointed officials and their numerous agencies and departments
bureaucracies
in Thoughts on Scarcity, Burke declared that the state should confine its activity to everything that is
truly and properly public
Franklin Roosevelt’s plan that was viewed as a financial savior
- doled out money through various federal aid programs
- increased government regulation of agriculture, business, banks, money supply
- nation taken off gold standard
- more jobs to lower unemployment
New Deal
the idea that it is the government’s responsibility to pump money into and economy and ensure a low unemployment rate was part of this economist’s philosophy
John Maynard Keynes
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
Keynesianism
said it is the government’s job to “prime the economic pump” during times of recession even if it means running up massive budget deficits and national debt
Keynes
