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Economics > Test 5 > Flashcards

Test 5 Flashcards

1
Q

Who believed that government should pump money into an economy during recessions?

A

John Maynard Keynes

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2
Q

Who increased governmental control of the economy during the Great Depression through the New Deal?

A

Franklin Roosevelt

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3
Q

Who attempted to lift the American economy out of its slump by implementing policies based upon supply-side economics?

A

Ronald Reagan

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4
Q

Who is considered to be the Father of Communism?

A

Karl Marx

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5
Q

What did Edmund Burke say about the state confining its activity?

A

Confine it to “everything that is truly and properly public”.

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6
Q

What is the value of all finished goods and services produced within a country during a year’s time?

A

GDP

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7
Q

What is the value of all finished goods and services produced by a nation’s citizens during a year’s time?

A

GNP

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8
Q

What is a tool to measure a nation’s inflation?

A

CPI

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9
Q

To what does the CPI compare prices? It is also defined as an arbitrary time which is set at 100%.

A

Base Period

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10
Q

In a free market society, who makes the majority of the economic decisions?

A

the Private Sector

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11
Q

What is a complex organization made up of appointed officials and their departments?

A

bureaucracy

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12
Q

What is the term that describes high inflation combined with high unemployment?

A

Stagflation

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13
Q

What is the term that describes when demand becomes greater than the supply, creating shortages?

A

Demand-Pull inflation

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14
Q

What is an established system of political administration by which a nation is ruled?

A

Government

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15
Q

What components of the economy normally change before the rest of the economy?

A

Leading indicators

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16
Q

What is the reduction of taxes which makes more money available for private investment in capital and research called?

A

Supply-side economics

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17
Q

Which is severe and long-lasting: a recession or a depression?

A

Depression

18
Q

When state planners in a command economy underestimate or overestimate the demand for various goods, what usually results?

A

Shortages and surpluses

19
Q

What field of study describes the government’s role in an economy?

A

macroeconomicss

20
Q

What part of the business cycle immediately follows the peak of its expansion?

A

recession

21
Q

What part of the business cycle is the boom?

A

expansion

22
Q

What are the four parts of a business cycle?

A

Expansion
Peak
Recession
Trough

23
Q

What are 4 of the 5 ways discussed in the text by which governments can damage their economies?

A 
Excessive taxation
Inflation and debasement of money
excessive public expenditure
excessive regulation
political plundering
24
Q

What are the two primary aims of government?

A

Punish evil

Reward good

25
Q

What divided city displayed the poverty and lack of freedom typically found in command economies?

A

Berlin

26
Q

What is the promotion of one’s own nation regardless of moral consideration?

A

Nationalism

27
Q

What is a system of collective ownership and control of national resources?

A

Socialism

28
Q

What system of government has public ownership and governmental control of the production and distribution of nearly all national resources?

A

Communism

29
Q

What system of government has “expert planners” that can better solve economic problems than natural corrections?

A

Keynsianism

30
Q

What type of inflation occurs when businesses increase their prices to compensate for rising production costs?

A

Cost-push inflation

31
Q

Marx saw what type of economic system as a necessary evil in the transition from feudalism to Communism?

A

Captialism

32
Q

One of the main dangers of what economic system is deceptiveness which creeps into an economy without people realizing what is happening?

A

Socialism

33
Q

What term refers to a perfect society under Marxist idea?

A

Utopia

34
Q

What event in 1917 began the rise of Communism?

A

Bolshevik Revolution

35
Q

Welfare capitalism and managed capitalism are different terms for what economic system?

A

Socialism

36
Q

What pamphlet outlined the Communist philosophy and described the steps to establish Communism worldwide?

A

The Communist Manifesto

37
Q

What do Communist governments forbid in an effort to control distribution?

A

competition

38
Q

Who must be overthrown, according to Communism?

A

bourgeois

39
Q

ESSAY:

Explain how excessive taxation can seriously harm or event destroy an economy.

A

LOOK IT UP!

40
Q

ESSAY:
Discuss some of the problems inherent in socialism. Why do people continue to accept socialistic policies in spite of its danger?

A

LOOK IT UP!

Economics (13 decks)

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