Quesrions For Unit Test Flashcards
(2 cards)
How do we know if the economy is healthy?
Economic growth allow successive generations to have more and better goods and services then their parents had. To satisfy the needs of a growing population real GDP must grow at least as fast as publishing does.When unemployment rate matches inflation rates at a steady pace and when poverty is in the norm of 4 to 6% the color me as healthy as long as the unemployment rate stays at a moderate rate inflation will not go higher. If there’s no downturns in the overall economy, unemployment has remained constant while inflation has halted.The time he has a rise in GDP while they fall in inflation. Also when government programs such as welfare Social Security and Medicare Medicaid are able to be divided with funds without trouble or difficulty for citizens.
How can taxation meet the needs of government and people?
The income received by government from taxes and other nontax sources is called revenue. Without revenue from taxes, the government would not be able to provide goods and services that we not only benefit from but that we expect the government to provide. For example we ought the rise of government to provide national defense, highways, education and law-enforcement. All of these goods and services cost money so all members of our society share these costs through the payment of taxes. Taxation is the primary way that the government collects money. Taxes give the government the money it needs to operate.
