Semester Exam

Question 1

Why are choices necessary

Answer 1

Because resources are scarce and people can’t have everything that need or want so they have to make a decision

Question 2

What type of economy does the us have

Answer 2

Free market economy

Question 3

Entitlement programs

Answer 3

Social welfare programs that people are entitled to if they meet certain eligibility qualifications

Question 4

Types of entitlement programs

Answer 4

Social security
Medicare
Medicaid

Question 5

Medicaid

Answer 5

Low income families
Disabilities
Elderly people in retirement

Question 6

Medicare

Answer 6

Medical expenses for those with disabilities

Question 7

Entitlement programs

Answer 7

Social welfare programs that people are entitled to if they meet certain eligibility qualifications

Question 8

Types of entitlement programs

Answer 8

Social security
Medicare
Medicaid

Question 9

Medicaid

Answer 9

Low income families
Disabilities
Elderly people in retirement

Question 10

Medicare

Answer 10

Medical expenses for those with disabilities

Question 11

Relationship between deregulation and competition

Answer 11

Deregulation of government actions allows firms to compete more by eliminating barriers to entry and price controls

Question 12

How has outsourcing impacted jobs

Answer 12

It has decreased the available jobs because companies are looking for cheaper and easier employees in other countries instead of us

Question 13

The amount of money left after taxes

Answer 13

Disposable income

Question 14

The initial amount of money loaned out is called

Answer 14

Principal

Question 15

Price paid for borrowing money

Answer 15

Interest

Question 16

Lower the risk investments will —- returns

Answer 16

Lower the risk investments will give lower returns
Bonds
Increase risk increases return like stocks

Question 17

What so the main source of revenue through local government

Answer 17

Property taxes

Question 18

Sales tax

Answer 18

A tax on the dollar clause of a good or service being sold

Question 19

Property tax

Answer 19

Tax on the value of the property

Question 20

Proportional tax

Answer 20

A tax for which the percentage of income paid in taxes remains the same for all income levels
Flat tax, same for everyone
Ex sales tax

Question 21

Progressive tax

Answer 21

A tax for which the percentage of income paid in taxes increases as income increases
Ex tax brackets

Question 22

Regressive tax

Answer 22

A tax for which the percentage of income paid in taxes decreases as income increases
Ex sales tax 6% for 20,000
6% for 100,000,000,000 no longer feel it

Question 23

Is the federal income tax progressive

Answer 23

Yes, the more money pay the more taxation, jumps a bracket

Question 24

Largest category of federal spending

Answer 24

Entitlement programs like healthcare, Medicaid, Medicare, social security

Question 25

Where does the governments right to collect taxes come from

Answer 25

The constitution

Question 26

How can the federal reserve encourage or discourage loans

Answer 26

Increasing or decreasing the borrowing rate

Question 27

How can the federal reserve counteract inflation caused by an expansion

Answer 27

Increase taxes and lower government spending

Question 28

Trade deficit

Answer 28

Importing more than exporting

Question 29

Examples of contractionary fiscal policies

Answer 29

Shrinking economy, raise taxes and decrease government spending

Question 30

NAFTA

Answer 30

Agreement that will eliminate all tariffs and other trade barriers between Canada, Mexico, the United States

Question 31

How does investment promote economic growth

Answer 31

Savings account money can be loaned to businesses to invest the money to increase their product

Question 32

Diversification

Answer 32

Spreading out investments to reduce risks

Question 33

FDIC

Answer 33

Federal deposit income corporation ensures savings in bank

Question 34

How to calculate GDP per capita

Answer 34

Calculate GDP, divide by totally population

Question 35

Fiat money system

Answer 35

Government says type of money to pay off, decides currency

Ex dollars and coins