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Economics

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Nikko Gleichner

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Cards in this guide (23)
What is the purpose of taxation

To provide revenue to government for its operation and programs.

Which of these is an example of a tax on wealth

Real estate tax

What is the principle that justifies a regressive tax

The benefits-received principle justifies a regressive tax.

Choose the pair of phrases that correctly completes this sentence taxes are charged while tariffs are charged

internally; on imports

What does a budget reveal about a government

A budget reveals the spending plan for the fiscal year, as well as the government's financial priorities and goals.

What makes government contracts unique

They create obligations normally applied to government agencies.

Why do governments provide public goods

The free market is incapable of providing these essential goods.
Private companies cannot profit by providing them.

Which of the following statements best describes how investors behave when engaged in socially responsible investing

They invest in companies with a business model and social mission that they support

What does someone using fundamentals analysis look at when analyzing a particular stock

Someone using fundamentals analysis looks at a company's traits such as revenues and earnings per share.

Which of the following best explains why commodity futures contracts are transferable

They can be bought and sold but the obligation in the contract remains a valid

What best explains the difference between a fixed currency and a floating currency

The price of a floating currency is determined by the currency exchange market while the price of a fixed currency is connected to the price of some other commodity.

Which of the following is one disadvantage for a company that goes public

The pressure to make profits is increased.

What is rural-commodity market

Farmer's market where fresh products are sold hearby.

What is the difference between a tariff and an excise tax

A tariff is the tax placed on the shipment of imported goods that are imported. An excise tax is an indirect tax that is charged upon the sale of one good.

What best states the difference between seed capital and startup capital

Seed capital is for research and planning while startup capital is for operating expenses.

Which of the following most accurately explains why money differs from commodity money

Fiat money only has value as a medium of exchange. Apex

What example of a payroll tax

Social security tax

What is one difference between government agencies anf government contractors

H

Which of the following is a disadvantage of debt financing

Banks are usually unwilling to fund a business in its early stages of development. Banks generally don't want to take the risk that a business will fail and default on its debt obligations.

Which ofthe following happens when a company goes public

It begins selling shares of stock in a public stock

What is an example of a labor law in economics

A restriction on when a union may call a strike

Match each organization with its correct relationship to the government

A. Social security _ government agency

B. U.S. Postal Service _ government corporation

C. Boeing _ government contractor

Match each type of good with the sample good it represents (apex)

Merit good : education

Public good : national security

Individual good : food

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