All flashcards
Flashcard 1: What is the primary focus of Keynesian economic policy?
Answer: Stimulating demand to achieve full employment. Based on theory that government spending can counter economic downturns.
Flashcard 2: What economic ideology emphasizes minimal government intervention?
Answer: Laissez-faire. French term meaning 'let it be' - free market operates without interference.
Flashcard 3: Which economic theory advocates for supply-side tax cuts?
Answer: Reaganomics. Named after Reagan's 1980s policy of cutting taxes to boost economic growth.
Flashcard 4: Which economic ideology supports high public sector involvement?
Answer: Social democracy. Political system combining democratic governance with extensive social welfare programs.
Flashcard 5: Identify the policy: Government reduces expenditure to control inflation.
Answer: Contractionary fiscal policy. Government cuts spending and raises taxes to reduce inflationary pressure.
Flashcard 6: What is the primary goal of economic nationalism?
Answer: Protect domestic industries from foreign competition. Economic policy prioritizing domestic production over international trade.
Flashcard 7: Which economic policy is used to control the money supply?
Answer: Monetary policy. Central bank controls currency circulation and credit availability in economy.
Flashcard 8: Which economic policy focuses on long-term infrastructure investment?
Answer: Public investment. Government spending on infrastructure, education, and long-term economic development.
Flashcard 9: What is the economic impact of a progressive tax system?
Answer: Higher earners pay a larger percentage of their income. Tax rates increase with income levels to promote wealth redistribution.
Flashcard 10: Which policy advocates for balanced government budgets?
Answer: Fiscal conservatism. Philosophy emphasizing reduced government spending and debt reduction.
Flashcard 11: What is the monetary policy tool used to control inflation?
Answer: Interest rate adjustments. Central bank raises rates to reduce money supply and price levels.
Flashcard 12: Which ideology supports public ownership of resources?
Answer: Socialism. Economic system where government or community owns means of production.
Flashcard 13: Identify the economic system based on supply and demand.
Answer: Market economy. Economic system where prices determined by supply and demand forces.
Flashcard 14: What is the main characteristic of a command economy?
Answer: Centralized government control over production. Government makes all economic decisions about production and distribution.
Flashcard 15: What does 'privatization' involve in economic terms?
Answer: Transferring public assets to private ownership. Selling government-owned enterprises to private companies or investors.
Flashcard 16: What does the term 'deficit spending' refer to?
Answer: Government spending exceeds revenue. Government borrows money to fund expenditures beyond current income.
Flashcard 17: What is the primary focus of Keynesian economic policy?
Answer: Stimulating demand to achieve full employment. Based on theory that government spending can counter economic downturns.
Flashcard 18: Identify the policy tool: Adjusting interest rates to influence the economy.
Answer: Monetary policy. Federal Reserve controls money supply and credit through interest rate changes.
Flashcard 19: Which economic ideology opposes government welfare programs?
Answer: Libertarianism. Political philosophy favoring minimal government intervention in personal and economic matters.
Flashcard 20: Which economic ideology supports high public sector involvement?
Answer: Social democracy. Political system combining democratic governance with extensive social welfare programs.
Flashcard 21: What is the goal of antitrust laws?
Answer: Prevent monopolies and promote competition. Legal measures to break up large companies and maintain market competition.
Flashcard 22: Which economic policy focuses on long-term infrastructure investment?
Answer: Public investment. Government spending on infrastructure, education, and long-term economic development.
Flashcard 23: Which policy involves government borrowing to finance deficits?
Answer: Deficit financing. Government issues bonds or takes loans to cover budget shortfalls.
Flashcard 24: Which ideology emphasizes equal distribution of wealth?
Answer: Socialism. Economic system advocating for collective ownership and wealth redistribution.
Flashcard 25: Which economic theory advocates for supply-side tax cuts?
Answer: Reaganomics. Named after Reagan's 1980s policy of cutting taxes to boost economic growth.
Flashcard 26: What is the primary economic concern of socialism?
Answer: Redistribution of wealth to achieve equality. Economic system prioritizing collective ownership and income equality.
Flashcard 27: What is the primary goal of economic nationalism?
Answer: Protect domestic industries from foreign competition. Economic policy prioritizing domestic production over international trade.
Flashcard 28: What is the economic effect of a subsidy?
Answer: Reduces the cost of goods or services. Government financial assistance makes products more affordable for consumers.
Flashcard 29: Which policy advocates for balanced government budgets?
Answer: Fiscal conservatism. Philosophy emphasizing reduced government spending and debt reduction.
Flashcard 30: Which economic policy is used to control the money supply?
Answer: Monetary policy. Central bank controls currency circulation and credit availability in economy.