Midterm

Question 0

Movement along the demand curve is caused by what?

Answer 0

Price change

Question 1

How is power decided between the states?

Answer 1

Central, city, state

Question 2

What are public policies?

Answer 2

Things government decided to do

Question 3

List and explain the 2 types of dictatorships

Answer 3

Autocracy-one person holds power

Oligarchy-small group holds power

Question 4

Explain the law of supply

Answer 4

She price increases, supply increases

Question 5

Explain the law of demand

Answer 5

When prices decrease consumers buy more

Question 6

What is elasticity?

Answer 6

When you buy less, even after a small increase

Question 7

What is the law of diminishing returns?

Answer 7

Level of production increases as you hire workers

Question 8

Define Consititution

Answer 8

Body of laws set out by principles

Question 9

Explain the idea of representative government?

Answer 9

Government serves the will of the people

Question 10

What is confederation

Answer 10

A league

Question 11

What is popular sovereignty

Answer 11

Complete and absolute power

Question 12

What were the 3 biggest weaknesses of the articles of confederation?

Answer 12

Could not tax, couldn’t regulate trade, lakes power to make people regulate trade

Question 13

What did the commerce and slave trade compromise resolve?

Answer 13

Congresses power to regulate trade

Question 14

What is federalism?

Answer 14

Division of powers among the national government.

Question 15

What is the fiscal policy?

Answer 15

Federal governments deliberate use of spending and cost of goods to effect the overall business activity.

Question 16

Explain the theory of cost pull inflation?

Answer 16

Push for higher wages by employees causes businesses to raise prices to maintain profit.

Question 17

Explain the theory of demand pull inflation?

Answer 17

Prices rise as a result of excess demand

Question 18

If the federal government was going to use Fisical policy to fight inflation, what might they do?

Answer 18

Raise taxes on businesses and customers

Question 19

The federal government creating a job program I’d an example of:

Answer 19

Injection of money into the circular flow of income.

Question 20

President bush giving tax breaks to businesses and wealth is an example of the:

Answer 20

Supply side effects