Economics Regents Review – Flashcards
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Market Economy
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Economic decisions are made by individuals or the open market.
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Capitalism
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An economic system based on private property and free enterprise.
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Laissez Faire
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Idea that government should play as small a role as possible in economic affairs
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Mercantalism
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Colonies exist only to benefit the mother country.
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Bank of the United States
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Hamilton's plan to solve Revolutionary debt, Assumption highly controversial, pushed his plan through Congress, based on loose interpretation of Constitution
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Protective Tarrif
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a tax on goods manufactured from another country to the benefit of the home economy
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Excise Tax
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A tax on the production or sale of a good
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Whiskey Tax
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Part of the excise taxes, the whiskey tax added a tax on whiskey at seven cents a gallon This helped pay of some of the debt.
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Capital
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Wealth in the form of money or other assets
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Natural Resources
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Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain
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Transcontinental Railroad
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A railroad connecting the west and east coasts of the continental US built during the 1800's.
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Corporation
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A business owned by stockholders who share in its profits but are not personally responsible for its debts
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Monopoly
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A market in which there are many buyers but only one seller.
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Trust
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A monopoly that controls goods and services, often in combinations that reduce competition.
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Munn v. Illinois
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1876; The Supreme Court upheld the Granger laws. The Munn case allowed states to regulate certain businesses within their borders, including railroads, and is commonly regarded as a milestone in the growth of federal government regulation.
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Interstate Commerce Commission
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Federal regulatory agency often used by rail companies to stabilize the industry and prevent ruinous competition
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Sherman Antitrust Act
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1890 - A federal law that committed the American government to opposing monopolies, it prohibits contracts, combinations and conspiracies in restraint of trade.
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16th Amendment
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Amendment to the United States Constitution (1913) gave Congress the power to tax income.
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Graduated Income Tax
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A tax on income in which the taxation rates grow progressively higher for those with higher income
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Federal Reserve
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A national banking system, established in 1913, that controls the U.S. money supply and the availability of credit in the country.
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Federal Trade Commission
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A government agency established in 1914 to prevent unfair business practices and help maintain a competitive economy.
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Clayton Antitrust Act
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1914 law that strengthened the Sherman Antitrust Act
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Great Stock Market Crash
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Disastrous fall in the stock prices in 1929
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Buying on Margin
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Purching stock with a little money down with the promise of paying the balance at sometime in the future
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Consumerism
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A preoccupation with the purchasing of material goods.
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Planned Obsolescence
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the practice of modifying products so those that have already been sold become obsolete before they actually need replacement
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New Deal
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A series of reforms enacted by the Franklin Roosevelt administration between 1933 and 1942 with the goal of ending the Great Depression.
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Great Depression
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A severe, world wide economic crisis which lasted from the end of 1929 to the outbreak of World War II.
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Great Society
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President Johnson called his version of the Democratic reform program the Great Society. In 1965, Congress passed many Great Society measures, including Medicare, civil rights legislation, and federal aid to education.
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Supply Side Economics
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An economic philosophy that holds the sharply cutting taxes will increase the incentive people have to work, save, and invest. Greater investments will lead to more jobs, a more productive economy, and more tax revenues for the government.
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Deficit
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An excess of federal expenditures over federal revenues.
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Surplus
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A situation in which quantity supplied is greater than quantity demanded
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Reaganomics
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The federal economic polices of the Reagan administration, elected in 1981. These policies combined a monetarist fiscal policy, supply-side tax cuts, and domestic budget cutting. Their goal was to reduce the size of the federal government and stimulate economic growth.
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Welfare Reform
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Ended guarantees of federal aid to children, turned over programs such programs to states, food stamp spending cut, added five year limit on payments to any family.
