Economic Policymaking

Question 1

capitalism (free enterprise)

Answer 1

individuals make their own decisions

Question 2

socialism

Answer 2

government makes decisions

Question 3

communism

Answer 3

full government control

Question 4

globalism

Answer 4

1 world, no countries

Question 5

indicators of good country economic health

Answer 5

1) the amount of money the gov is making
2) inflation (value $ down, prices up)
3) consumer purchases are good
4) construction is high
5) poverty rate is low

Question 6

business cycle

Answer 6

good times -> bad times -> good times

Question 7

GDP

Answer 7

gross domestic product (gov $ being made)

Question 8

fiscal policy

Answer 8

government trying to regulate economy

Question 9

deficit spending

Answer 9

spending more than we have

Question 10

texas debt

Answer 10

texas will not allow the state to go into debt (pay as you go)

Question 11

why do we have national debt?

Answer 11

1. owe money to ourselves
2. owe money to other countries (china)
3. paying interest on debt (15%)

Question 12

how to solve national debt

Answer 12

tax more and spend less

Question 13

federal reserve system

Answer 13

in charge of monetary policy

Question 14

monetary policy

Answer 14

controlling money supply