Economics Test

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Author:
petite94
ID:
39774
Filename:
Economics Test
Updated:
2010-10-04 20:41:04
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Economics
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Study Guide
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  1. *What does FICA fund?
    Social Security & MediCARE
  2. *What is an entitlement?
    Meet certain elegibility requirements to get it.
  3. *What is the major source of revenue?
    Property tax
  4. *An example of a contractionary fiscal policy is..?
    Decrease government spending
  5. *If you're a supporter of supply side economics, you believe...
    Taxes have a strong negative influence on the economy
  6. *What's the purpose of expansionary fiscal policy?
    Increase Output
  7. *All of the following are problems with high national debt except..
    Makes invest
  8. *Example of discrentionary spending
    Education
  9. *What kind of currency system....
    Fixed
  10. *Keynsean economics....
    Agrigit Demand
  11. *What happends when the nations currency depreciates?
    Products become cheaper to other nations. They get more.
  12. *Duty free shops...
    Import Tax
  13. *Question about bananas...
    United States cannot produce bananas.
  14. *When exchange rates are aloud to be determined by supply and demand...
    Flexible
  15. *Exchange rates between US & Japan
    Increase
  16. What is the European Union[EU]
    Regional Trade Orginization
  17. Currency in great britain is the pound...long question...
    Go up, increase
  18. A sales tax is what type of tax?
    Regressive
  19. FISCAL POLICY
    A government policy for dealing with the budget.
  20. PROPORTIONAL TAX
    [flat tax]
    A tax in which the percentage of income paid in taxes remains the same for all income levels.
  21. PROGRESSIVE TAX
    One in which the percentage increases at higher income levels.
  22. REGRESSIVE TAX
    The percentage increases at lower income levels.
  23. SOCIAL SECURITY
    Social Welfare program in US.
  24. SUPPLY SIDE ECONOMICS
    The school of economic theory that stresses the costs of production as a means of stimulating the economy; advocates policies that raise capital and labor output by increasing the incentive to produce.
  25. TARIFF
    Government tax on imports or exports
  26. What type of opportunity cost do I want to have when it comes having a comparative advantage?
    Lower oppertunity cost
  27. EXCISE TAX
    A tax on a sale or manufacture of a good.
  28. COMPARATIVE ADVANTAGE
    Ability of an individual to produce a particular good or service at a lower opportunity cost than another party.
  29. ABSOLUTE ADVANTAGE
    Ability of an individual to produce more of a good or service than competitors, using the same amount of resources.
  30. Appreciation/Depreciation
    Increase in the value of a currency/Decrease in the value of a currency.
  31. What is OMB's role in giving money out to Federal agencies?
    Set up the budget/run the budget.
  32. What does state capital budgets fund?
    • Big expenses
    • ie:roads, bridges
  33. REVENUE
    Income
  34. What is a deficit? A surplus?
    Spends more than takes in/Takes in more than spends

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