Role of Government Flashcards
0
Q
What is a public good?
A
A good available to everybody that is payed by the government
School, healthcare
1
Q
What is the difference between normative and positive economic statements?
A
what should be implemented vs. how it works
2
Q
What is a budget?
A
estimated amount of money available to spend
3
Q
What are taxes?
A
money paid to the government for social services
4
Q
What are the different types of taxes?
A
income, property, sale
5
Q
What is fiscal policy?
A
the way government adjusts spending to influence ecomonmy
6
Q
What is monetary policy?
A
controls supply of money to promote growth within the country
7
Q
When is expansionary policy used?
A
closed recessionary gap to stimulate economy
8
Q
When is contractionary policy used?
A
correct inflation rates
