Quiz 4 study guide Flashcards
economic theory
a theory of commercial activities
fiscal policy
yearly government budget. government action of either raising or lowering taxes.
monetary policy
how the country regulates money supply (federal reserve)
trade policy
a set of rules and regulations that are intended to change international trade flows, particularly to restrict imports
social security
an entitlement program mandated by law. all those who qualify receive it. programs includes retired workers over 65, disabled, and temporarily unemployed
social welfare
government funded programs made to help specific groups of people- food stamps, government housing
health care
medicare and medicaid
GDP
Gross Domestic Product- the follow amount of all final goods and services produced within a countries national borders in a year.
Medicare
federal government pays for part of the cost of medical care for retired/disabled people covered by social security.
mixed economy
capitalist free-market systems in which both government and private industry play a role. Both private and public ownership of the means of production and distribution of goods and services.
which of the following is NOT generally a step in the policy-making process?
Abandoning governmental solutions for societal problems
Which of the following is an example of a policy that a believer in laissez-faire economics might support?
The implementation of a flat tax
supply-side economics
economic growth can be most effectively created by investing in capital and by lowering barriers on the production of goods and services
budget deficits
indicator of financial health in which expenditures exceed revenue
which action would a lawmaker who follows the Keynesian school of economics be most likely to take during an economic recession?
increase domestic government spending
Fiscal year
a year for tax purposes- can start on any day but must end 1 year later.
entitlements
owning something
mandatory spending
spending that is required by law to fund entitlement programs like social security, medicare, medicaid, and veteran pensions.
discretionary spending
spending not required by law. Includes government operations such as defense, education, highways, and research grants. These are the primary targets when cuts happen to balance the budget.
deficit spending
the federal governments practice o spending more money than it takes in as revenues/taxes.
Medicare
provides government assistance to people older than 65 for health care, covered by social security.
5 steps for government to apply public policy to a societal problem
- Define the role of government in solving the problem
- Agenda setting
- policy formation and adoption
- policy implementation
- policy evaluation
5 steps for government to apply public policy to a societal problem
- Define the role of government in solving the problem
- Agenda setting
- policy formation and adoption
- policy implementation
- policy evaluation
DEA
Drug Enforcement Agency- federal agency responsible for enforcing laws and regulations governing narcotics and controlled substances
FBI
Federal Bureau of Investigation- the principle investigative unit of the US department of Justice.
CIA
Central Intelligence Agency- coordinates american intelligence and counterintelligence activities abroad.
EPA
Enviormental Protection Agency- an agency of the federal government that administers all of the government environmental legislation. Largest federal independent regulatory system
SSI
Supplemental security income- cash payments to aged, blind, or dibbles people whose income is below a certain amount.
medicaid
provides medical and health-related services for low-income parents, children, seniors, and people with disabilities. federal and state government.
mandatory spending
spending that is required by law to fund entitlement programs like social security, medicare, medicaid, and veteran pensions.
ex. social security, medicare
discretionary spending
spending not required by law. Includes government operations such as defense, education, highways, and research grants. These are the primary targets when cuts happen to balance the budget.
ex. defense, highways, research, education
5 components of US foreign policy
a
How federal government keeps you safe
- foreign policy
- government regulation
- fiscal policy
- monetary policy
- social policy
3 components of US social policy
- protect against risk and insecurity (FDA)
- promote equal opportunity (YMCA, Boys and Girls Club)
- assist the poor (food stamps, government homes)
5 components of public policy
- foreign policy
- government regulation
- fiscal policy
- monetary policy
- social policy
EPA
Environmental Protection Agency- an agency of the federal government that administers all of the government environmental legislation. Largest federal independent regulatory system
5 components of public policy
- foreign policy
- government regulation
- fiscal policy
- monetary policy
- social policy
kenesian response to economic recession
increase domestic government spending, make the economy better by spending more
kenesian response to economic recession
increase domestic government spending, make the economy better by spending more
what is the most important power of congress with public policy?
power of the purse- threat to cut funding for the president
ex. congress threat in early 70s to cut finding in Vietnam so nixon would pull out of Vietnam
How monetary policy is implemented by the federal reserve
- by manipulating the reserve requirement, which raises or lowers the amount of money banks are required to keep on hand.
- by manipulating the discount rate, which raises or lowers the interest banks pay to the federal reserve banks for borrowing money.
- by manipulating open market operations, the federal reserve buys and sells US government bonds.
5 components of US foreign policy
- Diplomacy
- Military and security policy
- international human rights policies
- economic policies
- environmental policy
executive agreements
negotiation between leaders- doesn’t require 2/3 vote, only majority vote
american goals
- promote stable markets
- promote economic prosperity
- promote business development
- protect consumers and employees
in what decade did the federal government exercise the most regulatory action?
- 1930s- New Deal
