Final Exam Part 3

amsykes's version from 2015-12-05 22:48

Section 1

Question Answer
Individual decisions and reliance on voluntary exchangeAmerica's Free Market System
The study of the relationships among politics, economics, government, and the markets. Political Economy
True or False: The political American economy impacts the entire world.True
Stability of kept by way of supply and demand.Classical Economy Theory
Government intervention can combat recession and inflation.Keynesian Theory

Section 2

Question Answer
The double digit inflation, high interest rates, and low economic growth. Stagnation; some believe this is caused by government intervention
Holding the rate of monetary growth to the rate of the economy's growthMonetarist Economics
When individuals know they can keep moe of the money they earn , they're more likely to be productive workers and creative investorsSupply-Side
The curve that shows the relationship between tax rates and revenueLaffer Curve
Independent of the executive branch; oversees nation's monetary policyThe Federal Reserve Board
The tool by which expenditures for public policies are decidedThe Budget

Section 3

Question Answer
The President has been in change of drafting the budget and submitting it to Congress for approval since when?1921
States how much money government agencies will be allowed to spend on their programsThe Budget
True or False the budget applies to the fiscal yearTrue
Refers to how much money agencies re allowed to spendBudget Authority
Refers to how much money agencies are expected to spendBudget Outlays
The difference between expected taxes and revenues and total spending (receipts)Budget Deficit

Section 4

Question Answer
The preparation of the budget is overseen byThe Office of Management and Budget
Oversee the nation's monetary policy Federal Reserve Board; 7 members->14 year terms
Which act made monopolies illegal? Sherman Anti-Trust Act
Theory of the Invisible Hand Adam Smith (CET)
Inflation+Unemployment= Misery Index

Section 5

Question Answer
Responsible for raising revenue to run the governmentTax Committees
Have jurisdiction over spending in a particular legislative matterAuthorization Committees
Decide which programs passed by the authorization committee will receive fundingAppropriations Committee
Designed to provide a continious flow of revenue without annual legislationTax Policies; often adjusted

Section 6

Question Answer
The higher the income, the more taxes paidProgressive; Income Taxes
People from low income brackets pay a higher portion of their income to taxes Regressive; Sales Tax
All income groups pay the same percentage of their income in taxesProportional (Flat) Tax
The only way equality in taxation can be achievedArgument for Flat Tax
What were the two greatest periods of government spending? The New Deal and The Great Society

Section 7

Question Answer
True or False: The gap between the rich and the poor is wider in the U.S. than any other Western industrialized country except Brazil. True
How much interest is on the Federal Debt annually? $233 Billion

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