Government and the Economy

Question 1

Does the U.S. government play a role in our economy

Answer 1

yes

Question 2

what is involved in circular flow?

Answer 2

resources, goods and services flowing freely among households, businesses and markets (money flows in other direction)

Question 3

where does “Purchases of goods and services” go?

Answer 3

1

Question 4

where does “taxes” go?

Answer 4

2 & 7

Question 5

where does “Government purchases” go?

Answer 5

3

Question 6

where does “demand” go?

Answer 6

4

Question 7

where does “Incomes” go?

Answer 7

5

Question 8

where does “Social Transfers” go?

Answer 8

6

Question 9

where does “wages, dividends, intersect, profits and rent” go?

Answer 9

8

Question 10

what role does the government play in circular flow?

Answer 10

taxing consumers and businesses to provide public goods and services

Question 11

what is money?

Answer 11

anything referred to as payment
makes it easier to borrow, save, invest and purchase good and services

Question 12

what are 3 types of money?

Answer 12

coins
federal reserve notes (surrency of dollar bills)
deposits in bank accounts

Question 13

what role do banks and credil unions play?

Answer 13

they encourage saving or investing by paying interest

Question 14

what are public goods and services?

Answer 14

things that are provided to individuals and buissnesses by the government
Ex: highways, national defense, education

Question 15

how does the government pay for goods and services?
(there are 3)

Answer 15

tax revenue,
borrowed funds,
fees paid

Question 16

paid when someone uses services only the government provides (Ex: national park, buying stamps)

Answer 16

fees

Question 17

are issued when a law has been broken

Answer 17

fines

Question 18

what does income tax revenue pay for?

Answer 18

services like national defense or homeland security

Question 19

what are state and local taxes?

Answer 19

state- income taxes, sales taxes
local- sales taxes, property taxes

Question 20

what are some rights the government protects?

Answer 20

consumer right
labor
environment
property rights
competition

Question 21

What is the CPSC?

Answer 21

consumer propuction safty commison, they protect consumer rights

Question 22

What is the FDA?

Answer 22

food and drug administration, protect consumer rights and say that consumers have the right to take legal action if rights are violated

Question 23

What agencies regulate labor?

Answer 23

Occupatinal Safety and Health Administration (OSHA)
Equal Opportunity Employment Commission (EEOC)

Question 24

what is EPA?

Answer 24

Environmental Protection Agency

Question 25

Why is competition in the marketplace important?

Answer 25

it makes better quality goods and lowers the price

Question 26

what is a monopoly?

Answer 26

one business controls the distribution of one good or service

Question 27

what is free enterprise?

Answer 27

businesses compete within the marketplace

Question 28

how does the government encourage business startup?

Answer 28

offers low interest loans or grants

Question 29

what is global trade?

Answer 29

worldwide markets where buying and selling of goods and services happens

Question 30

why do we participate in global trade?

Answer 30

it allows more consumer choice

Question 31

why do we engage in international trade?

Answer 31

increase wealth, lower cost or opportunity cost of goods and services allows selling goods and services to other countries creates jobs

Question 32

how does virginia participate in the global economy?

Answer 32

specilalize in production of certain goods and services

Question 33

how has advances in technology impacted the global economy?

Answer 33

by encouraging the global flow of information via the internet lower cost of production

Question 34

federal agencies that regulate the economy are a part of which branch?

Answer 34

executive

Question 35

What is the FCC?

Answer 35

federal communications commission, they are responsible for regulating interstate and international communications

Question 36

What is the SEC?

Answer 36

Security Exchange Commission, they manage protection of investors

Question 37

What is the FTC?

Answer 37

Federal Trade commission, they oversee how buisinesses advertise, protect against false advertisments

Question 38

what is the federal reserve system and what do they do?

Answer 38

serves as central bank regulates banks influences money supply and intrest raites in economy