apush economics

Question 1

mercantilism

Answer 1

economic system where a nation’s wealth is measured by the amount of gold and silver it has. goal is to export more than a country has to import to build wealth

Question 2

direct tax

Answer 2

a tax imposed directly on people or property, such as the stamp act (1765) where colonists had to pay a tax on printed materials

Question 3

national bank

Answer 3

central bank established by alexander hamilton. managed the finances of the nation to create a stable economy. first BUS was opposed by jefferson while the second BUS was ended by jefferson

Question 4

embargo

Answer 4

a government order that restricts or prohibits trade with another country, usually as a form of political or economic pressure

Question 5

tariff

Answer 5

tax imposed on imported goods. protective tariffs are high tariffs to protect domestic manufacturing

Question 6

overspeculation

Answer 6

escessive investment in stocks or assets, leading to inflated prices followed by a crash

Question 7

panic

Answer 7

sudden widespread fear over economic conditions, leading to a financial crisis or market collapse

Question 8

industrial capitalism

Answer 8

term associated with the rapid industrialization of the gilded age. wealthy industrial capitalists gained large fortunes while exploiting workers

Question 9

laissez-faire

Answer 9

economic policy advocating minimal government intervention in the economy

Question 10

bimetallism

Answer 10

monetary system where the value of currency is backed by both gold & silver

Question 11

federal reserve

Answer 11

central banking system of the us that is responsible for regulating the country’s monetary policy

Question 12

buying on margin

Answer 12

purchasing stocks with borrowed money, using only a fraction of the total cost as a down payment

Question 13

black tuesday (1929)

Answer 13

the infamous day when the us stock market crashed on october 29, 1929. this marked the beginning of the great depression

Question 14

keynesian economics

Answer 14

theory that during times of economic downtime, the government should increase spending to help stimulate the economy

Question 15

stagflation

Answer 15

term used to describe high inflation and high unemployment rates. occurred during the 1970s in the us. it was caused by excessive defense spending & the oil crisis

Question 16

reaganomics

Answer 16

reagan’s supply-side economy policy that emphasized tax cuts, reduced government spending, and deregulation. also known as trickle down economics