economics final Flashcards
The gross domestic product consists of what 4 components?
purchases by consumers, purchases of capital goods by businesses, purchases of goods and services by the government, and net exports
What are the 3 most important macroeconomic variables?
GDP, rate of inflation, and rate of unemployment
Name the 4 purposes of the fiscal and monetary policies of the federal government.
to promote economic growth and stabilization/ to reduce inflation and unemployment/ to encourage international trade/ and to preserve the fairness and equal access of the free market
How can a national government encourage investment?
by keeping tax, debt and inflation rates low and by maintaining stable financial markets
What are some examples of itemized deductions from a person’s income tax?
charity, medical expenses, property and sales taxes paid, interest paid on a home mortgage
What car manufacture introduced the Model T?
Ford
When do Christians most effectively participate in the economy?
When they see themselves as oikonomoi, stewards of the resources that God places in their care
What does insurance manage?
risk
What are the 2 most important elements in a budget?
making it and keeping it
What is the largest crop in the US?
corn
What country is the world’s leading consumer of petroleum products?
US
What are the 3 Big US automaker companies?
GM, Ford, Chrysler
What is the purpose of regulations?
the public welfare
What does the Office of Management and Budget do?
heads the development of the federal budget and sees that the executive departments follow through on budget guidelines
What does the United States Trade Representatives do?
develops trade and conducts trade negotiations with other countries
What does the Internal Revenue Service do?
enforces the tax code
What does the Council of Economic Advisors do?
a three-member group that advises the president on domestic and international economic policy
What is the largest stock exchange in the world?
NY stock exchange
What is the name of the electronic stock market founded in 1973?
NASDAQ
What is Social Security?
provide retirement benefits for workers and survivor benefits to families with dead workers
Medicare
federal program that provides medical coverage for the elderly
Medicaid
federal program that provides medical coverage for the poor
Deficit
refers to the amount that the government spends which exceeds the revenue
Gross National Product
is the production of a nation’s permanent residents, whether that production occurs within the country or elsewhere.
