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AP US Government > Economic Policy > Flashcards

Economic Policy Flashcards

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1
Q

What is the unemployment rate?

A

People who are seeking work but are unable to find it; 60,000 people; 2010-10% unemployment rate

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2
Q

What is the underemployment rate?

A

The unemployment rate plus those seeking work full time but can only find part time work

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3
Q

What is the CPI (Consumer Price Index)?

A

The prices of 80,000 items in the US are tracked monthly; the change in CPI is called inflation, which is up about 4%
The largest increase in inflation was in the 1970’s

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4
Q

What is capitalism?

A

An economic system where individuals and corporations own the means of production, distribution, and reap profits

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5
Q

What is a mixed economy?

A

A government, while not commanding the economy, are involved because of regulations such as taxes, unions, and the IRS

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6
Q

What is the United State’s economy?

A

It’s more like a mixed economy

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7
Q

What are multinational corporations?

A

Corporations with business inside the US and out

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8
Q

What is monetary policy?

A

The manipulation of the supply and demand of money and credit in private hands

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9
Q

What is the Federal Reserve (“The Fed”) do?

A

The Fed is a seven member board that includes the Chairman of the fed and controls monetary policy

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10
Q

How does the fed control monetary policy?

A

1) sets discount rates for money banks can borrow
2) sets reserve rates for how much a bank can have at any one time
3) buys and sells bonds

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11
Q

What is the Keynesian theory on how to solve budget problems?

A

Says that the government should spend their way out of a depression; this is predominantly backed by democrats

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12
Q

What is the Supply Side Economics theory on how to solve budget problems?

A

Says to stimulate the supply of goods, not the demand; in order to stimulate the economy, you should cut taxes; predominantly backed by Republicans

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13
Q

What are anti-trust laws?

A

Laws that break up monopolies

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14
Q

What is a monopoly?

A

Complete control over an industry

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15
Q

What is “right to work”?

A

You don’t have to join a labor union (only in montana)

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16
Q

What is the Taft Hartley Act?

A

Guarantees unions can do collective bargaining

17
Q

What is the largest expenditure in the US?

A

Social welfare

18
Q

What are entitlement programs?

A

Social insurance programs, you’ve paid into it so you get the benefits; ex/ social security, medicare, and unemployment benefits

19
Q

What are means tested programs?

A

Programs that are only available to people under the poverty line; Deserving-those who can’t work bc of disability, etc; Undeserving-those who created their own problems and are looking for a handout

20
Q

What is income?

A

The amount of money you make between any two points

21
Q

What is wealth?

A

The amount that you already own, assets

22
Q

What is relative deprivation?

A

Perception of how financially well off you are compared to others

23
Q

How much is the top 1% (>389,000$) taxed?

A

39%

24
Q

How many americans are hovering at or below the poverty line?

A

15%

25
Q

Poverty is highest among…

A

African Americans, Hispanics, unmarried women, inner cities

26
Q

What is the feminization of poverty?

A

Poverty is highest among women of color that live in inner cities

27
Q

What is earned income tax credit?

A

Take the poorest of the working poor (those just above the poverty line) and give them a tax credit

28
Q

What are “in kind” payments?

A

They come in the form of not money; ex/ free breakfast at schools, decreased housing costs, food stamps, WIC

29
Q

What are transfer payments?

A

Social security, scholarships, etc

30
Q

What did FDR implement into social welfare?

A

New Deal: Social security act 1935, to help the elderly

31
Q

What did LBJ implement into social welfare?

A

1964, war on poverty: medicare, food stamps, “welfare”

32
Q

What did Clinton implement into social welfare?

A

TANF (Temporary assistance for needy families)

  • recipients only receive about $365/month
  • every state receives a fixed amount
  • can only be on welfare for two years
  • maximum of five years
  • TANF applies to all welfare
33
Q

What were the results of TANF?

A
  • dramatic decrease of those on welfare
  • state and federal spending go down
  • pro: program works
  • con: we don’t know why it works
  • immigrants, legal or illegal, can apply
34
Q

What are some problems we foresee with social welfare?

A
  • entitlement programs are living on borrowed time
  • this is bc we can’t raise the age of retirement, life expectancy is going up
  • one solution is to privatize social security
35
Q

Why is there more support for social programs for the elderly than for the poor?

A

They have votes and AARP to advocate for them

AP US Government (17 decks)

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