Week13 Vocab

Question 1

Anti-trust laws

Answer 1

Legislation to prevent now monopolies from forming and police those that already exist

Question 2

Inflation

Answer 2

Sustained increase in the general level of prices

Question 3

Business Cycle

Answer 3

Alternating periods of growth and decline that the economy goes through

Question 4

Fiscal Policy

Answer 4

The federal governments use of spending and taxation policies to affect overall business activity

Question 5

Regressive tax

Answer 5

A tax that takes a larger percentage of lower incomes

Question 6

Monopoly

Answer 6

When he market creates a sole provider for a good or service

Question 7

Progressive tax

Answer 7

A tax that takes a larger percentage of higher incomes than lower incomes

Question 8

Proportional tax

Answer 8

Taxpayers are required to pay 10% of income on taxes

Question 9

Private goods

Answer 9

Goods that when consumed by one individual, cannot be consumed by another

Question 10

Public goods

Answer 10

Economic goods that are consumed collectively, such as highways and national defense