economic policies

Question 1

refers to a system of production and consumption of goods and services that are allocated through the exchange among producers and consumers

Answer 1

economy

Question 2

T/F
Business firms are opposed to government regulations; they only object to regulatory policies that harm their interests.

Answer 2

F (not oppose)

Question 3

term that refers to government restrictions on the economic practices of private firms

Answer 3

regulation

Question 4

ways government promote business interests

Answer 4

loan and tax breaks

Question 5

they receive loans guarantees, direct loans, tax credits for capital investment

Answer 5

firms

Question 6

They receive tax deduction for capital depreciation

Answer 6

firms

Question 7

refers to the repeal of government regulations for the purpose of improving economic efficiency

Answer 7

deregulation

Question 8

example of economic downturn

Answer 8

great depression or recession

Question 9

T/F
Laissez-faire thinking may dominate government approach to labor

Answer 9

T

Question 10

this may bring about change in labor’s position

Answer 10

economic downturns

Question 11

this prevented businesses from disrupting union activities or discriminating against union employees

Answer 11

laws

Question 12

give workers right to bargain collectively

Answer 12

laws

Question 13

T/F
Government support for business is much less extensive than its support for labor

Answer 13

F (Labor, business)

Question 14

refers to a tool by which the government seeks to maintain a stable economy through its taxing and spending decisions

Answer 14

fiscal policy

Question 15

An economic philosophy that holds that private firms and individuals should be left alone to make their own production and distribution decisions

Answer 15

laissez-faire

Question 16

what shattered the idea that economy was self-regulating, that it would correct itself after a downturn

Answer 16

great depression

Question 17

was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States

Answer 17

great depression

Question 18

It was the longest, deepest, and most widespread depression of the 20th century

Answer 18

great depression

Question 19

his spending and jobs programs, which stimulated the economy and created jobs ushered in the modern era

Answer 19

Franklin Roosevelt

Question 20

origin of fiscal policy

Answer 20

economic theories of John Maynard Keynes

Question 21

according to him, the downturn could be shortened only if the government compensates in the slowdown in private spending by increasing its spending level

Answer 21

John Maynard Keynes

Question 22

During an ____________, the government should engage in massive new spending programs to speed the recovery

Answer 22

economic depression

Question 23

During a ___________ spending should also be increased but by a lesser amount

Answer 23

recession government

Question 24

based on demand-side economics

Answer 24

Keynes’s theory

Question 25

refers to a very severe and sustained economic downturn

Answer 25

depression

Question 26

refers to a moderate but sustained downturn of the economy

Answer 26

recession

Question 27

Under this fiscal policy, government can use increased spending, placing money into people’s hands

Answer 27

demand-side

Question 28

combatted the steep economic slide precipitated by the near collapse of the financial markets

Answer 28

American economic recovery and reinvestment act of 2009

Question 29

term for the provision of financial help to a corporation or country which otherwise would be on the brink of failure or bankruptcy

Answer 29

bailout

Question 30

refers to attempts to use monetary or fiscal policy (or stabilization policy in general) to stimulate the economy

Answer 30

stimulus

Question 31

the ability of an executive to formulate the budget, present it to the legislature and execute or control the budget

Answer 31

budgetary power

Question 32

the sum of money allocated for the government’s expenditures for a given year

Answer 32

national budget

Question 33

the government spends more than it collects in taxes and other revenues

Answer 33

deficit spending

Question 34

he/she has power to draft the national budget

Answer 34

chief executive

Question 35

refers to a condition when the government’s expenditures exceed its revenues

Answer 35

deficit

Question 36

total cumulative amount that the government owes creditors

Answer 36

national debt

Question 37

when revenues would equal government expenditures

Answer 37

balanced budget

Question 38

refers to a condition when the governments revenues exceed its expenditures

Answer 38

surplus

Question 39

fiscal policy boosts the economy by putting money into producer’s hands

Answer 39

supply-side policy

Question 40

included large tax breaks for firms and upper income individuals

Answer 40

Reaganomics

Question 41

Was also the basis of George W. Bush’s economic initiatives

Answer 41

reaganomics

Question 42

Included reductions in the personal income tax and in capital gains tax

Answer 42

reagnomics

Question 43

refers to revenue collected from what people gain from the sale of stocks

Answer 43

capital-gains tax

Question 44

they pursued tax policies favoring working-class people and lower-middle class; They typically advocate a graduated, or progressive personal income tax in which the tax rate increases significantly as income rises, thus shifting tax burdens to wealthier individuals.

Answer 44

Democrats

Question 45

he argued that his tax cut would boost economic activity to such an extent that revenue would actually increase

Answer 45

bush

Question 46

refers to the general increase in the average level of prices of goods and services

Answer 46

inflation

Question 47

term used to refer to a period of slow economic growth coupled by the rising of prices

Answer 47

stagflation

Question 48

T/F strong currency could trigger inflationary spiral

Answer 48

f (weak)

Question 49

like Niall Ferguson he predicts that a nation’s fiscal crisis could cause its decline. “That’s how empires decline.”

Answer 49

Doomsayers

Question 50

tool of economic management used by the government based on the manipulation of money in circulation

Answer 50

momentary policy

Question 51

Economists who emphasize monetary policy are called

Answer 51

Momentarist

Question 52

he held that supply and demand are best controlled by manipulating the money supply

Answer 52

Milton Friedman

Question 53

T/F less money in circulation contributes to inflation because too many dollars are chasing a few goods which drives up prices

Answer 53

F (too much)

Question 54

T/F Too little money in circulation results in a slowing economy and rising unemployment because consumers lack the ready cash and easy credit required to maintain spending levels

Answer 54

t

Question 55

they believe in increasing the money supply when the economy needs a boost and decreasing the supply when it needs to be slowed down

Answer 55

Momentarist

Question 56

Money supply is controlled by the _______

Answer 56

Central Bank

Question 57

basic structure of the Bangko Sentral includes:

Answer 57

momentary board, momentary stability sector, supervision and examination sector, human management sector

Question 58

exercises the powers and functions of the BSP, such as the conduct of monetary policy and supervision of the financial system;

Answer 58

momentary board

Question 59

takes charge of the formulation and implementation of the BSP's monetary policy, including serving the banking needs of all banks through accepting deposits, servicing withdrawals and extending credit through the rediscounting facility;

Answer 59

momentary stability secctor

Question 60

enforces and monitors compliance to banking laws to promote a sound and healthy banking system

Answer 60

supervision and examination sector

Question 61

serves the human, financial and physical resource needs of the BSP

Answer 61

resource management sector

Question 62

An economic principle that holds that firms should fulfil as many of society’s needs as possible while using as few of its resources as possible. The greater the output (production) for a given input (for example, an hour of labor) the more efficient the process.

Answer 62

efficiency

Question 63

Where thus the burdenof taxation shift

Answer 63

Corporations to individuals

Question 64

This may dominates the government approachto labor

Answer 64

Laissez-faire thinking

Question 65

this may bring about change in labor’s position

Answer 65

economic downturn

Question 66

this theory holds that the level of the government’s response should be commensurate with the severity of the downturn

Answer 66

Keynesian theory

Question 67

they see an economic downturn through the lens of the business firms

Answer 67

republicans

Question 68

he tuns into tax cuts as a means of stimulating business activity

Answer 68

Reagan

Question 69

they pursued tax policies favoring working-class people and lower-middle class

Answer 69

democrats

Question 70

this theory holds that the level of the government’s response should be commensurate with the severity of the downturn

Answer 70

keynesian theory

Question 71

it can be implemented more quickly.

Answer 71

Momentary policy

Question 72

Burdens that society incurs when firms fail to pay the full cost of production.

Answer 72

Externalities

Question 73

Example of externality

Answer 73

Pollution