Unit 5 - Role Of The Government Flashcards
What are the three different types of taxes?
Local
State
Federal
How can the government play a significant role in mixed economies?
By intervening in the market to try to secure a preferred outcome
One of the governments roles in the economy is to prevent __________ externalities from occurring
Negative
Governments may also require that if certain goods (particularly expensive goods like cars) fail to live up to reasonable standard or are unable to be repaired in a reasonable time frame, the customer is entitled to his or her money back without significant hassle. What are these called?
Lemon laws
A law called the ________________ gives the government the power to prevent mergers and acquisitions.
Clayton Antitrust Act
Because government regulation can be costly, where is the cost passed along?
Higher prices paid by consumers
What is the goal of federal initiatives like social security, healthcare programs, and welfare programs?
Improve the life of the American Citizen
How do safety net programs receive finding from the government?
Taxes
In what two ways can poverty be classified?
Relative and absolute
What was a stipulation of the Fair Standards Labor Act of 1938 (FSLA)?
Minimum wage of 25 cents for workers
What is the tax paid by an individual to the government based on his or her income from wages?
Individual income tax
Why would the federal reserve lower interest rates?
to make loans more feasible and spur economic growth
What is the idea that individuals are rivals in consuming because one persons consumption reduces the amount available for others to consume?
Principle of rival consumption
Many manufacturers offer __________________ because there is no way to always ensure the longevity of a new product.
Warranties or guarantees
The ______________ prevents businesses from collaborating with each other to set prices or divide markets between them.
Sherman Antitrust Act
