Exam 8: Power and the Economy

Consumers decide what should be produced by expressing their preferences in terms of the amount of money they spend on various goods and services, thus creating

In 1993, the United States, Canada, and Mexico signed the North American Free Trade Agreement (NAFTA). Objections by U.S. labor unions were drowned out by

To compute the Gross Domestic Product (GDP), economists sum up all the expenditures on goods and services, plus government purchases. Care is taken to count

The GDP divided by the population is a measure of

Write an essay that explains the benefits of increased global trade for the United States as well as the case for protectionism of the U.S. economy.

Keynesian economics recommends that during a recession the national government should increase its spending and decrease taxes, and that during a boom, it should

The __________ controls the supply of money and credit and interest rates (sets monetary policy).

The national debt is the total of all annual federal deficits. The current debt is about $57,000 for every

A __________ system is a method of making economic decisions that allows individuals and firms to decide who gets what and how using a voluntary exchange.

Explain the similarities and differences in the economic strategies used by President George H.W. Bush and President Bill Clinton. How did the outcomes vary?

The rate at which money is exchanged for goods and services is called

Why does the government intervene in the economy? Write an

Using government policies to increase the supply of goods and services through incentives to work, save, and produce is a feature of

A market is any place or arrangement that enables people to exchange money for goods, services, or labor.

Monetarism is a Keynesian economic theory that advocates that the government's proper role in promoting a healthy economy is using its power to regulate the

Inside directors of corporations, who are also full-time presidents or vice presidents of the corporations, tend to dominate the board proceedings.

What is the GDP and what are the limitations associated with it?

Markets implement decisions through involuntary exchange.

Describe the role of deficit spending and national debt in the disagreement between President Obama and conservative Republican members of Congress.

The economic system consists of the institutions and processes by which a society imports and consumes plentiful resources.