Test 3 Flashcards
What effect do overvalued coins have on currency?
They drive out undervalued coins.
Who is hurt by inflation?
Erryone.
What do state issued coins symbolize?
Political and religious authority.
How does the government increase spending without increasing taxes?
Debasing the currency.
Who invented the progressive income tax?
Karl Marx.
Why is government Counterfeiting worse than private?
Because we trust the government.
What type of inflation is invisible?
Inflation by the government.
Who sets prices in a free market?
Consumers.
How do corrupt producers stay in business?
By having a monopoly and the government on their side.
What is required in widespread economic oppression?
Consent of the governed.
What happens when debased money is in circulation?
Quality must drop.
What occurs when the government controls prices and quality in a debased currency?
Honest sellers go out of business.
What bypasses governmental control?
The black market.
Who’s face was on the coin handed to Jesus?
Tiberius Caesar.
What was the right to issue coinage in a Greek city-state a sign of?
Political and legal independence.
