3. What is the FederalWhat is the Federal
Reserve?Reserve?
Regulates the nation’sRegulates the nation’s
money supplymoney supply
4. What is fiscalWhat is fiscal
policy?policy?
Consists of decisions andConsists of decisions and
policies concerningpolicies concerning
taxation and spendingtaxation and spending
5. What are the Fed’sWhat are the Fed’s
tools for controllingtools for controlling
the money supply?the money supply?
Reserve requirement,Reserve requirement,
discount rate, buying/sellingdiscount rate, buying/selling
of securities by the FOMCof securities by the FOMC
7. What is inflation?What is inflation?
A rise in this is whatA rise in this is what
usually ends a period ofusually ends a period of
expansionexpansion
8. Raise the prime or discountRaise the prime or discount
raterate
What can the Fed do to slow downWhat can the Fed do to slow down
an economy that is expanding tooan economy that is expanding too
rapidly?rapidly?
9. In this system, prices areIn this system, prices are
determined solely by supplydetermined solely by supply
and demand forces.and demand forces.
What is a marketWhat is a market
economy?economy?
10. This type of economicThis type of economic
system has governmentsystem has government
influence primarily in theinfluence primarily in the
areas of money supply andareas of money supply and
matters of consumermatters of consumer
protectionprotection
What is a mixed economy?What is a mixed economy?
11. His book,His book, The Wealth ofThe Wealth of
Nations,Nations, said that businesssaid that business
will regulate itself throughwill regulate itself through
natural market forcesnatural market forces
Who is Adam Smith?Who is Adam Smith?
12. Countries with this typeCountries with this type
of economic systemof economic system
typically have hightypically have high
GDPs and highGDPs and high
standard of livingstandard of living
What are market orWhat are market or
mixed economies?mixed economies?
13. The means ofThe means of
production are ownedproduction are owned
and operated by theand operated by the
government.government.
What is a commandWhat is a command
economy?economy?
14. The federal government’sThe federal government’s
greatest source of revenuegreatest source of revenue
What are individualWhat are individual
income taxes?income taxes?
15. Usually designated forUsually designated for
capital improvements suchcapital improvements such
as school and governmentas school and government
buildings, water treatmentbuildings, water treatment
facilities, etc.facilities, etc.
What are property taxes?What are property taxes?
16. Another name for useAnother name for use
taxes.taxes.
What are excise taxes?What are excise taxes?
17. This type of tax systemThis type of tax system
taxes income attaxes income at
increasingly higherincreasingly higher
rates as the level ofrates as the level of
income risesincome rises
What is a progressive tax?What is a progressive tax?
18. The greatest amount ofThe greatest amount of
revenue for both state andrevenue for both state and
local governments.local governments.
What areWhat are
intergovernmentalintergovernmental
revenues?revenues?
19. Provides law enforcementProvides law enforcement
at the county level.at the county level.
What is the sheriff’sWhat is the sheriff’s
department?department?
20. The executive power for aThe executive power for a
city rests with this official.city rests with this official.
What is the mayor?What is the mayor?
21. The 2The 2ndnd
largest category oflargest category of
revenue for the staterevenue for the state
budgetbudget
What is sales tax?What is sales tax?
22. Legislation passed by cityLegislation passed by city
council or countycouncil or county
commission.commission.
What is an ordnance?What is an ordnance?
23. What must be true of theWhat must be true of the
North Carolina budgetNorth Carolina budget
that is not necessary forthat is not necessary for
the federal budget.the federal budget.
What is a balanced budget?What is a balanced budget?
25. Importing moreImporting more
goods than aregoods than are
exportedexported
What is an unfavorableWhat is an unfavorable
balance of trade?balance of trade?
26. This country’sThis country’s
developing economy isdeveloping economy is
now the second largestnow the second largest
in the world.in the world.
What is the People’sWhat is the People’s
Republic of China [PRC]?Republic of China [PRC]?
27. Has all but eliminatedHas all but eliminated
trade barriers betweentrade barriers between
Canada, the United StatesCanada, the United States
and Mexico.and Mexico.
What is the North AmericaWhat is the North America
Free Trade AgreementFree Trade Agreement
[NAFTA]?[NAFTA]?
28. The tax placed onThe tax placed on
imported goods beforeimported goods before
entering the market.entering the market.
What are tariffs?What are tariffs?
29. Two institutions thatTwo institutions that
provide loans andprovide loans and
financial assistance tofinancial assistance to
developing countries.developing countries.
What are the WorldWhat are the World
Trade OrganizationTrade Organization
[WTO] and[WTO] and
International MonetaryInternational Monetary
Fund [IMF]?Fund [IMF]?
30. Most of the federalMost of the federal
government’s budget isgovernment’s budget is
already committed toalready committed to
these.these.
What are entitlementWhat are entitlement
programs?programs?
31. Nations that are seekingNations that are seeking
weapons of massweapons of mass
destruction and/ordestruction and/or
harboring terrorists andharboring terrorists and
are, therefore, a threat toare, therefore, a threat to
international security.international security.
What are “rogueWhat are “rogue
nations”?nations”?
32. What is anWhat is an
oligarchy?oligarchy?
Dictatorial rule by aDictatorial rule by a
few peoplefew people
33. What is a high rate ofWhat is a high rate of
population growth?population growth?
Besides a general lack ofBesides a general lack of
natural resources, a keynatural resources, a key
obstacle to economicobstacle to economic
growth in manygrowth in many
developing nationsdeveloping nations
34. What is maintain worldWhat is maintain world
peace?peace?
The main role of theThe main role of the
United Nations.United Nations.
