Economics Unit 2

pazana's version from 2016-12-13 16:19

Section 1

Question Answer
since when did the US Govt. began involvement with the economylate 1800's
in what type of economy, do people or consumers make the economic decisionsmarket economy
the free enterprise system is dependent upon an Americans right to?his or her own property
what is the only thing that keeps an American from owning his/her own business is?age
what is essential in the ability to sell or make a profit off the same?private property
What can be seen in the fifth amendment ?Taking Clause
the governments right to take private property is dependent upon it providing the owner with?compensation
the supreme court case Kelo V. New London(2005)gave in cases of eminent domain to ?government
competition, the pursuit of profit, and private property are parts of the ?free enterprise system
within a market economy, what ensures that consumers have access to reasonable prices and choice?competition

Section 2

Question Answer
when one company due to some advantages can offer a product at a lower price than other companies its?natural monopoly
the national football league is an example of legal monopoly
this act was important b/c it was the first move of the govt. to regulate moneySherman Anti-Trust Act of 1890
a new business created by an entrepreneurstart-up
who was the major obstacle to the spread of banking in Europe during the 1500sThe Roman Catholic Church
What event led to a more centralized banking system in the U.SThe Revolutionary War
what isn't an example of money ?your first debit card
settling a debt a means of payment
medium of exchange, store value, unit of accountfunction of money
if the fed wanted to slow down inflation it would ?sell securities in the open market

Section 3

Question Answer
what happens if the Fed buys securities ?the dollar loses strength against foreign currency
what is money according to law ?fiat money
serves as identification card for purchasescredit card
what is considered as the next form of money ?e-cash
sanctioned by the treasury departmentbank
serves as a particular group onlycredit union
what did Andrew Jackson destroy?the bank of the U.S
created by Woodrow Wilsonthe federal reserve system
serves 14 year termsboard of govenors
policy that controls money in circulationmonetary policy
creates fed policyfederal open market operations
president responsible for eliminating any connection between the dollar & gold?Richard Nicon
ustin the federal budget to direct the economyfiscal policy
fiscal policy by an act of congressdiscretionary fiscal policy
fiscal policy spurred by the state of the economyautomatic fiscal policy
fiscal policy with increased spending and tax cutsexpansionary fiscal policy
fiscal policy with decreased spending and increased taxescontractionary fiscal policy
when is the congress and the president are responsible for passing a federal budgetoctober 1st
the federal bank responsible for the beginning all fed policy based out ofNew York