Midterm Flashcards
Movement along the demand curve is caused by what?
Price change
How is power decided between the states?
Central, city, state
What are public policies?
Things government decided to do
List and explain the 2 types of dictatorships
Autocracy-one person holds power
Oligarchy-small group holds power
Explain the law of supply
She price increases, supply increases
Explain the law of demand
When prices decrease consumers buy more
What is elasticity?
When you buy less, even after a small increase
What is the law of diminishing returns?
Level of production increases as you hire workers
Define Consititution
Body of laws set out by principles
Explain the idea of representative government?
Government serves the will of the people
What is confederation
A league
What is popular sovereignty
Complete and absolute power
What were the 3 biggest weaknesses of the articles of confederation?
Could not tax, couldn’t regulate trade, lakes power to make people regulate trade
What did the commerce and slave trade compromise resolve?
Congresses power to regulate trade
What is federalism?
Division of powers among the national government.
What is the fiscal policy?
Federal governments deliberate use of spending and cost of goods to effect the overall business activity.
Explain the theory of cost pull inflation?
Push for higher wages by employees causes businesses to raise prices to maintain profit.
Explain the theory of demand pull inflation?
Prices rise as a result of excess demand
If the federal government was going to use Fisical policy to fight inflation, what might they do?
Raise taxes on businesses and customers
The federal government creating a job program I’d an example of:
Injection of money into the circular flow of income.
President bush giving tax breaks to businesses and wealth is an example of the:
Supply side effects
