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74 Cards in this Set
- Front
- Back
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what is a capitalist economic system?
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one in which individuals and corporations own the principal means of production, through which they seek to earn profits.
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what is a mixed political economy?
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one in which the government, while not commanding the economy, is still deeply involved in economic decisions.
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what have policymakers made "it" part of since the new deal?
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part of their regular business to seek to control the economy.
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what is capitalism?
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an economic system in which individuals and corporations own the principal means of production.
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conservatives complain about:
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a. The oppressive scope of government.
b. The size of the public sector. c. Excessive regulation of the private sector. d. New legislation limiting corporate power. |
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what does the consumer price index measure?
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the change in the cost of buying a fixed basket of good s and services.
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what have hundreds, if not thousands, of studies by political scientists have concluded ?
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voters vote for the candidate who will benefit the voter’s financial condition the most.
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what have the democrats more willing to accept than the republicans?
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relatively high inflation, since government spending will stimulate the economy for the poor.
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who are more likely to vote Democratic (due to greater concern about unemployment) than higher income people are?
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Union members, minority group members, and the poor
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who are more likely to vote Republican (due to greater concern about inflation) than lower income people are.
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Business owners, managers, and professional people
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what party is more concerned about inflation that unemployment?
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Republican Party
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what is the nations unemployment rate determined by?
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a monthly random survey of the population.
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what does The Bureau of Labor Statistics conduct?
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a hugh statistical survey of the population monthly to measure the nation’s unemployment rate.
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why does The official unemployment rate underestimates unemployment?
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because it leaves out discouraged workers (since they are working). It does include: the homeless, housewives, students, and the high-tech sector (again, since they are working).
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In the 2004 presidential election, how did people who thought their families were doing better off vote?
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4 to 1 for George W. Bush.
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when was inflation generally highest?
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during the 1970s.
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what is The principle that the government should not meddle with the economy known as?
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laissez faire.
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When the stock market crash of 1929 sent unemployment soaring, what did President Herbert Hoover clung to?
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the laissez-faire economic theory.
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what is lassez faire the principle of?
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that government should not meddle with the economy
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who is the current chair of the Federal Reserve Board.
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Ben Bernanke
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what is monetary policy?
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the manipulation of the supply of money and credit in private hands to promote the nation’s economic health. This supply comes from bank loans and interest rates.
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what does An economic theory called monetarism hold?
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that the supply of money is the key to the nation’s health, and having too much cash and credit in circulation stimulates inflation.
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what do Monetarists want to hold the growth in?
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money supply to equal the rise in the gross national product after inflation.
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who is monetary policy directly regulated by?
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the Federal Reserve System.
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what is The Federal Reserve System is governed by?
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a seven-member Board of Governors appointed by the President and confirmed by the Senate.
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what would A supporter of laissez-faire policy oppose ?
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governmental intervention in the economy.
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Since the New Deal,what have policymakers made it part of their regular business to do?
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to seek to control the economy.
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what is The economic theory that considers the supply of money as the key to the nation’s economic health?
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monetarism
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what do Monetarists emphasize?
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that economic conditions are related to the supply of money
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what is The main agency for making monetary policy?
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the Federal Reserve Board.
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what is The Federal Reserve Board intended to be ?
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independent of partisan politics.
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what does The Federal Reserve Board regulate?
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the supply of money and credit in the economy.
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what is An example of the use of monetary policy?
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requiring banks to keep more money on reserve.
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According to monetarists,what can making too much money available to borrow lead to ?
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inflation.
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who are given 14-year terms designed to insulate them from political pressures?
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Members of the Federal Reserve System’s Board of Governors are given
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why does The Federal Reserve System’s Board of Governors sets discount rates at a higher level
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to decrease the amount of money in circulation.
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Know the following about the measures used by the Fed to control the money supply:
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e. It sets reserve requirements that determine the amount of money that banks must keep in reserve at all times.
f. It can buy and sell government securities (government bonds) in the market, thereby either expanding or contracting the money supply. g. It sets discount rates for the money that banks can borrow from the Federal Reserve. |
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The following is influenced in a major way by the actions of the Fed:
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h. The unemployment rate
i. Inflation j. Money supply k. Commercial interest rates |
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what is Fiscal policy is taxing, spending, and borrowing decisions shaped mostly by ?
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Congress and the president.
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what are Taxing, spending, and borrowing decisions by Congress and the president are known collectively as?
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fiscal policy.
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what is The most important political action in setting monetary policy
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the Federal Reserve
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what is An important tool in fiscal policy
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the level of government spending as indicated in the budget.
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what are Taxing, spending, and borrowing policies of the federal government all called?
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fiscal policy.
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what does the Keynesian economic theory argue?
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for stimulating the economy through government spending programs. (This can be known as deficit spending).
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what does the Keynesian economic theory encourages government to do?
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to create jobs for people during times of severe unemployment in order to get money into the hands of consumers and stimulate the entire economy.
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what does The Keynesian economic theory argues that government’s role in an economic depression should be?
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increase demand. (Help people out financially so that will be able to buy more).
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what would A believer in Keynesian economic theory would stress that?
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government should stabilize the economy through its spending policies.
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what would The economic theory argue that government can spend its way out of a depression by doing what?
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stimulating the economy through spending is Keynesianism
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Jumping into the business of consumer protection in the 1960s and 1970s,what did the Federal Trade Commission make new rules about ?
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product labeling, exaggerated product claims, and the use of celebrities in advertising
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Supply-side economics supported by President Reagan, were encouraged by which economist ?
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Arthur Laffer.
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what doescutting taxes leads to According to proponents of supply-side economics?
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more incentive to save, work harder, and create more jobs.
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what did President Reagan’s economic policies emphasize?
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supply-side economics in which tax cuts and deregulation are designed to free funds for savings and investment
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what were George W. Bush’s tax cuts in 2001 were based on ?
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supply-side economics.
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what did Major corporate corruption scandals in the 1990s follow an era of ?
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corporate concentration.
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Since the 1980swhat was big business particularly characterized by ?
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an increase in corporate mergers.
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what was The Sherman Act of 1890 was passed as ?
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an antitrust measure.
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what is The purpose of antitrust legislation ?
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to ensure competition and prevent monop0lies
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who did A famous and recent antitrust case pursued by the Clinton administration involve?
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microsoft.
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Know the following about the Food and Drug Administration:
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l. It has broad regulatory powers over the manufacturing, contents, marketing, and labeling of food and drugs.
m. Recent budget cuts have left it overburdened and seriously understaffed. n. It has the responsibility to ascertain the safety and effectiveness of new drugs before approving them for marketing in America. |
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what was The first major consumer protection policy
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the Food and Drug Act.
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Prior to the New Deal era of the 1930s,who did the national government usually allied itself with ?
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business elites to squelch labor unions.
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who was The right of American workers to collective bargaining was first guaranteed
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the National Labor Relations Act, also known as the Wagner Act.
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Know the following about the Wagner Act:
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o. It barred employers from firing or discriminating against a worker who advocates the possibility of unionizing.
p. It stated that the right of workers to collective bargaining was guaranteed by the national government. q. \it represented a sharp break with the government’s traditional anti-labor stance. |
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what is An example of the kind of consumer policy that was first adopted in the 1960s and 1970s
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creation of a Product Safety Commission to regulate the safety of items sold to consumers.
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who is The agency responsible for protecting the public against false and misleading advertising
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the Federal Trade Commission.
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who is Truth in lending is enforced by ?
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the Federal Trade Commission
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by what is The right of workers to collective bargaining is guaranteed by?
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the National Labor Relations Act.
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under a provision of what is An employer is forbidden to fire or discriminate against a worker who advocates the possibility of unionizing under a provision of
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the Wagner Act.
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what was The Taft-Hartley Act was aimed at ?
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limiting certain practices by organized labor.
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who were Right-to-work laws were permitted by ?
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Taft-Hartley Act (a union could not have a worker fired for not joining the union).
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who are Right-to-work laws are supported by
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business management
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by what were States were given the right to pass right-to-work laws?
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the Taft-Hartley Act
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what are the right to work laws that prohibit what requirements?
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that workers join a union to hold their jobs
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Government regulation affects businesses like Wal-Mart by:
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r. Monitoring stock transactions.
s. Regulating working conditions and labor practices. t. Affecting labor practices such as the minimum wage. |
