Chapter 6 - Evolution of Modern Liberalism

Question 1

an economy where the market determines prices, products and services rather than the govt

Answer 1

Free enterprise

Question 2

idea that certain people become powerful in society because they are innately better

Answer 2

Social darwinism

Question 3

taxes imposed by one country on goods or services imported from another country

Answer 3

Tarrifs

Question 4

What was the first red scare about?

Answer 4

a public fear of communism

Question 5

What kind of political shift were Theodore Roosevelt’s policies?

Answer 5

a shift left

Question 6

What did Warren Harding promise?

Answer 6

a return to normalcy

Question 7

What changes were brought in by President Harding?

Answer 7

Nativism, isolationism and low govt involvement

Question 8

Policies that favor the existing dominant culture and reduce immigration

Answer 8

Nativism

Question 9

Stay out of other countries affair

Answer 9

Isolationism

Question 10

What political shift did America face under Harding and Coolidge?

Answer 10

a shift right

Question 11

What was Coolidge a strong advocate for?

Answer 11

the free market

Question 12

What was the driver of economic success in the 20’s?

Answer 12

Consumerism

Question 13

Who was Roosevelt’s successor and how did he carry on his initiatives?

Answer 13

Willam Howard Taft; he wanted to prevent collusions and monopolies, passed anti trust laws which helped carry on his policies

Question 14

What was one of the reasons for Roosevelt to introduce his Square Deal?

Answer 14

prevent large companies from abusing their control over the market

Question 15

What kind of approach to the economy did Coolidge embrace?

Answer 15

laissez-faire attitude

Question 16

What did Keynes believe the govt should do in times of inflation?

Answer 16

raising taxes, using a central bank to raise interest rates and decrease govt spending

Question 17

What did Keynes believe the govt should do to stimulate the economy?

Answer 17

lower interest rates and taxes, and increase govt spending

Question 18

What were the three C’s of the Square Deal?

Answer 18

conservation of natural resources, control of the corporation, consumer protection

Question 19

Robber Barons

Answer 19

industrialists whose business practices are considered ruthless and unethical

Question 20

Who was a well known robber baron?

Answer 20

J.P. Morgan

Question 21

What are merit goods?

Answer 21

education, healthcare, libraries, public parks

Question 22

use of govt spending and taxation to influence the economy

Answer 22

fiscal

Question 23

raising or lowering taxes, investing in the construction of a new highway

Answer 23

fiscal

Question 24

the control of the money supply and interest rates by a central bank

Answer 24

monetary

Question 25

raising or lowering interest rates to either encourage or discourage lending

Answer 25

monetary

Question 26

when a recession and high inflation occur at the same time

Answer 26

Stagflation

Question 27

What was the outcome from the US withdrawing from the Bretton Woods Agreement?

Answer 27

caused currencies to be exchanged on the free market, leading to inflation

Question 28

What did the Arab-Israeli War trigger between OPEC and the West?

Answer 28

a standoff, meaning less ooil supply and prices rising

Question 29

What does a shortage of goods, high prices and recession equal?

Answer 29

stagflation

Question 30

Which two economists became very influential during the 1980s?

Answer 30

Friedman and Hayek

Question 31

Components of supply side economics

Answer 31

lowering taxes, lower interest rates, cutting social programs, less govt involvement in economy

Question 32

What conservative leader in Alberta promoted free market polices?

Answer 32

Ralph Klein

Question 33

advocated for less govt intervention in the economy, anti labor, anti regulation, anti environmental regulations policies

Answer 33

Reaganomics

Question 34

reduced income and business tax, and regulation

Answer 34

Reaganomics

Question 35

sold much of Britains social housing, privatized utility companies, took a hard line on labour unions

Answer 35

Thatcherism

Question 36

Greater egalitarianism in society, rejecting income distribution, balanced budgets

Answer 36

Blair’s Third Way

Question 37

Balanced budgets –> equal opprotunity, environmental consciousness, gender equality

Answer 37

Blair’s Third Way

Question 38

Free prenatal care, free university education, free medical and dental care, pensions tied to cost of living

Answer 38

Nordic socialism