Economics – Flashcards
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The EPA tries to balance protecting business interests with protecting...
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Air
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US federal income tax is progressive by law, but which best explains why is it sometimes regressive in practice?
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High-income earners use tax laws to their advantage to reduce their tax rates.
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On which of these are individuals required to pay income taxes in the United States?
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Wages,
Tips, &
Investment Earnings
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Which body manages the FED?
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The Federal Reserve Board
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Which best describes a regressive tax?
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A tax that charges high-income earners a lower percentage than low-income earners
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Which best describes why governments collect taxes?
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To fund government programs
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To reduce pollution, the ______ legislates and enforces regulations that protect the air, water, and land.
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Environmental Protection Agency
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Which federal regulatory agency would most likely bring a civil suit against a business that broke securities laws?
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The SEC
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Spending that can change from year to year is known as ___ spending.
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Discretionary
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What happens when a bank is required to hold more money in reserve?
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It has less money for loans
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What part does interests play in deficit spending?
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Governments must pay interet on money they borrow when they take on debt.
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Which group does the FED serve?
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Financial Institutions
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Expansionary spending takes place when a government makes the decision to...
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Raise spending to stimulate the economy.
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Which statement explains a way how the Securities and Exchange Commission upholds fair business practices?
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The SEC generally oversees financial advisers.
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Which of these are goals of an expansionary policy?
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Increased available credit,
Increased money supply, &
Decreased interest rates
