Ap Gov Chapter 18 Test Questions – Flashcards

(1887) Established the ICC (Interstate Commerce Commission) - monitors the business operation of carriers transporting goods and people between states - created to regulate railroad prices

(1890) First federal action against monopolies, it was signed into law by Harrison and was extensively used by Theodore Roosevelt for trust-busting. However, it was initially misused against labor unions

(1862) Gave 160 acres of public land to any settler who would farm the land for five years. The settler would only have to pay a registration fee of $25.

(1862) a law that gave land and money for agricultural colleges

(1933) established the Federal Deposit Insurance Corporation (FDIC) and included banking reforms, some of which were designed to control speculation

(1933) required companies that sold stocks and bonds to provide complete and truthful information to investors

(1934) Act that regulated "insider trading"

If you give credit to people that never were in a position to pay them back. Making loans to people who may have difficulty maintaining the repaying schedule. These loans are characterized by higher interest rates. Exp. If A is really poor and a bank gives him a credit for purchasing a house. After a while the house lost in value. A cannot pay the credit back.

(1935) also known as the Wagner Act, that guarantees workers the right of collective bargaining sets down rules to protect unions and organizers, and created the National Labor Relations Board to regulate labor-management relations.

an independent agency of the United States government charged with mediating disputes between management and labor unions

(1938) United States federal law that applies to employees engaged in and producing goods for interstate commerce. The FLSA established a national minimum wage, guaranteed time and a half for overtime in certain jobs, and prohibited most employment of minors in "oppressive child labor," a term defined in the statute. The FLSA is administered by the Wage & Hour Division of the United States Department of Labor.

written by Adam Smith, promoted laissez-faire, free-market economy, and supply-and-demand economics

Alternative to the laissez-faire state; the government takes an active role in guiding and managing the private economy

(1933) payments to farmers who agreed not to grow wheat, corn, tobacco, and other crops so farm prices went up and farmers better off

an independent governmeent agency that regulates interstate and international communications by radio and television and wire and cable and satellite

A federal regulatory agency that implemented economic regulatory controls over air carriers.

(1935) extended the regulatory authority of the Interstate Commerce Commission to cover interstate trucking lines

government regulation of business practices, industry rates, routes, or areas serviced by particular industries

Government regulation of the quality and safety of products as well as the conditions under which goods and services are produced

a federal agency established to protect the health and safety of consumers in and around their homes

OSHA; a Governmental Agency with the responsibility for regulatory and enforcement of safety and health matters for most United States employees; an individual State OSHA agency may supercede the US Department of Labor OSHA regulations

an independent federal agency established to coordinate programs aimed at reducing pollution and protecting the environment

the act of freeing from regulation (especially from governmental regulations)

(1978) removed government control over fares, routes and market entry (of new airlines) from commercial aviation.

(1996) effort to do away with most regulations: loosened restrictions on media ownership, allowed telephone companies, cable tv providers, and broadcasters to compete with each other for telecommunication services

In the summer of 2002, the Recording Industry of America (RIAA) asked Verizon Online to reveal the identities of four subscribers who were accused of harboring copyrighted music material on their personal computers. Verizon refused and the RIAA sent the ISP a subpoena pursuant to 17 U.S.C. ß 512 (h) of the Digital Millenium Copyright Act (DMCA), which allows a copyright owner or a person on the owner's behalf to ask a district court clerk "to issue a subpoena to a service provider for identification of an alleged [copyright] infringer." Verizon did not comply with the request because the alleged copyright materials were not on Verizon's computer servers, but rather on the user's personal computers, which the company argued was an invalid use of the subpoena. The RIAA sued Verizon on July 24, 2002, over its refusal to comply with the subpoena, and on January 21, 2003, the district court ruled for RIAA, finding that the process used by the RIAA was correct. Verizon appealed the decision, arguing that allowing an ISP to reveal the identity of a subscriber upon a mere allegation of copyright infringement violates the subscriber's privacy rights and is likely unconstitutional because of the lack of due process. On June 4, 2003, the appeals court denied Verizon's request for a stay of the lower court's order. According to the court, Verizon "has not shown so great a likelihood of success on the merits as to outweigh the clearly greater harm that would accrue to the [RIAA] if the stay were granted." Verizon turned over the names of the four subscribers to the RIAA on June 5, 2003, but will continue arguing the merits of the case in the pending appeal. Oral argument in the case is scheduled for September 2003.

(1946) Made it government policy "to promote maximum employment, production, and purchasing power.". Created a three-member Council of Economic Advisers to provide the president with the data and recommendations to make policy a reality.

the real goods and services that money can buy; determines the value of money

John Maynard Keynes' book calling for deficit spending.

English economist who advocated the use of government monetary and fiscal policy to maintain full employment without inflation (1883-1946)

An excess of federal expenditures over federal revenues.

A situation in which there is economic growth, rising national income, high employment, and steadiness in the general level of prices.

increased prices for goods and services combined with the reduced value of money

An economic slowdown of the economy which results in rising unemployment, increased business failures, declining economic growth and higher personal bankruptcies.

Government policy that attempts to manage the economy by controlling the money supply and thus interest rates.

anything that serves as a medium of exchange, a unit of account, and a store of value

(FOMC) - the 12 member group that determines the purchase and sale policies of the Federal Reserve Banks in the market for U.S. government securities.

The 12 banks chartered by the US government to control the money supply and perform other functions.

regulations set by the Fed requiring banks to keep a certain percentage of their deposits as cash in their own vaults or as deposits in their Federal Reserve district bank

the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve System

the buying and selling of government securities to alter the supply of money

the pressure that in the past the fed exerted on member banks to discourage them from borrowing heavily from the fed

The federal government efforts to keep the economy stable by increasing or decreasing taxes or government spending

Changes in taxes or spending that are the result of deliberate changes in government policy.

-Reduced top marginal income bracket 91% --> 70% -After WWII tax rates were very high compared to Reagan -Kennedy cut was immediate, while Reagan's took 3 years -lowered corprate tax rate 52% --> 48% -% of GDP decreased by approximately 6.9% -Left side of laffer curve, lowered Tax rate, lowering tax revenue

a tax on the manufacturing of an item. Helped Hamilton to achieve his theory on a strong central government, supported by the wealthy manufacturers. This tax mainly targeted poor Western front corn farmers (Whiskey). This was used to demonstrate the power of the Federal Government, and sparked the Whiskey Rebellion of 1794.

Maintains policies, plans, and procedures for the effective management of employees

create the Bureau of the Budget and General Accounting Office to prepare a unified federal budget. Realized a long held progressive desire to bring greater efficiency and nonpartisanship to the budget preparation process, passed under President Harding

the executive agency that advises the President on the federal budget

A law that reasserted congressional authority and budget making by creating new budget committees and the congressional budget office and requiring annual timelines for the budgetary process

staff agency that advises Congress on the likely economic effects of different spending programs and provides information on the costs of the proposed policies.

-process Congress uses to bring revenue and spending under existing law into conformity with the levels set in budget resolution ----binding instructions to specific committees to recommend statutory changes that will achieve the spending and revenue levels set ----enact the committees recommendations in the reconciliation bill

Public opinion turned quickly and powerfully against the Republican leadership and against much of its agenda after the disagreement in the federal government over the budget between Republican leaders and the president. This controversial Republican Speaker of the House, quickly became one of the most unpopular political leaders in the nation, while President Clinton slowly improved his standing in the polls.

US federal agency created in 2002 to coordinate national efforts against terrorism

the dollar amount of all final goods and services produced within a country's borders in a year.

(1985) Also known as Balanced Budget and Emergency Deficit Act, this act mandates maximum allowable deficits until 1991 when the budget should balance. It was abandoned in 1991.

A 1990 law that distinguished between mandatory and discretionary spending

the amount of money a hospital is allowed to spend, A federal law which extends the minimum COBRA continuation of group health care coverage from 18 to 29 months for qualified beneficiaries who are disabled at the time of qualification.