Economic Policy
a purposeful goal-oriented course of action taken by government that concerns the production, distribution, and use of material
Goals of Economic Policy
-Economic Growth
-Full Employment
-Stable Prices/Deflation/Inflation
-Balance of Payments
-Structural Changes
...
Economic Policy - ANSWER- a purposeful goal-oriented course of action taken by
government that concerns the production, distribution, and use of material
Goals of Economic Policy - ANSWER- -Economic Growth
-Full Employment
-Stable Prices/Deflation/Inflation
-Balance of Payments
-Structural Changes
Gross Domestic Product - ANSWER- GPD, measurement of economic
performance
Unemployment - ANSWER- the amount of people that are actively searching for
work but can't find it
Inflation - ANSWER- rate at which the price of goods and services are going up
Fiscal Policy - ANSWER- government spending and taxation that influences the
economy
Monetary Policy - ANSWER- federal reserve, money inputs and outputs policy
Types of Taxes (Tax Burdens) - ANSWER- Individual income tax, Corporate Tax,
Social Security Tax, Estate and Gift Taxes, Excise Taxes, and Customs Duties
Recession - ANSWER- means that the economy is weak and there is high
unemployment rates
The Instruments of Economic Policy - ANSWER- fiscal policy, monetary policy,
regulation and control, public ownership, incentives, moral suasion
, Competing Economic Theories - ANSWER- Classical: self-adjusting
Keynesian: government helps with recession and inflation
Supply Side: government stimulates production and supply
Monetarist: government controls monetary growth
Social Welfare Policy - ANSWER- direct or indirect goal-oriented activity by
government to improve the well-being of people who are hurt by unregulated
social and economic forces
Welfare State - ANSWER- a range of government agencies and other structures
that proved services and benefits to the population
Five Major Social Welfare Laws - ANSWER- 1. Social Security Act of 1935:
insurance and assistance programs
2. Economic Opportunity Act of 1964: Johnson's war on poverty, help raise the
poor up
3. Medicare Act of 1965
4. Family Support Act of 1988: paternity and child support
5. Welfare Reform Act of 1996: welfare recipients must go to work
Economic Definitions of Poverty - ANSWER- Poverty is the result of the
production and distribution of goods and services
-Absolute Poverty
-Relative Poverty
Cultural Definition of Poverty - ANSWER- Poverty is the result of human behavior
and interaction
Antipoverty Strategies - ANSWER- Punitive Strategy: punish/begrudgingly help
Preventative Strategy: prevent someone from poverty
Alleviate Strategy: alleviate suffering, food stamps
Curative Strategy: trying to cure poverty, headstart program
Political Strategy: give poor people power to have a say in their destiny
Income Strategy: government tries to provide some income for individuals
Major Classifications of Social Welfare Programs - ANSWER- Social Insurance
Programs: social security, unemployment compensation, medicare
Public Assistance Programs: supplemental security, family assistance, medicaid,
food stamps
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