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Ch. 17-19

Government Review

QuestionAnswer
What type of economic system does the US have? Why have officials deemed this type of system necessary? mixed capitalist economy mixed free-enterprise mixed market Consumers and businesses choose what they want
In what ways has government regulated labor and business practices?
define globalization system of interaction among countries in order to develop global economy international integration through changes in world views
what are the pros and cons of eliminating trade barriers between the US and trade partners? Pros: increase of products available to consumers Cons: foreign products could take over US-made products through competition
What are the pros and cons of outsourcing? Pros: cost savings, quality services Cons: linguistic barriers, social responsibility, company knowledge
the 2 major problems that plague economic stability are inflation and recession. Define each. Characteristics of a recession inflation: rise in prices for consumer goods Consumer price index: measure of inflation that relates rise in prices over time recession: economy shrinks, increase unemployment, decline in consumer spending and production
one type of government intervention to correct a recession or inflation is fiscal policy. Which two aspects of the economy are manipulated under fiscal policy to achieve economic stability? Keynesian economic theory: govt should use power to stimulate economy supply-side economics: too much income goes to taxes, so too little money is available for purchasing (cut taxes and give consumer purchasing power)
Popular American Government sets

 

 



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