Unit 6: Economy and Government: Free Enterprise
Essential Objectives
Objective 2.8-taxation and other revenue sources at national level
Concepts: sources of gov’t revenue, gov’t taxation
Terms: fiscal policy, expenditure, revenue, Taxation-regressive, progressive, & proportional, taxes- (income, excise, corporate, direct, estate), user fees, tariffs, social security, national budget, budget deficit/surplus, national debt, deficit spending, tax returns, fines, bonds, balanced budget
Objective 3.8-taxation and revenue sources at state and local level
Concepts: financing state and local gov’t, types of state and local taxes, non-tax sources of state revenue, state budget process, state and local spending
Terms: TAX- state income, corporate income, sales, excise, inheritance, property, estate
Fines, licenses federal grants in aid, intergovernmental revenue, user fees, disposal fees, permits, assessments, finances, budgets, impact fees, state & Municipal bonds
Objective 8.1-compare characteristics of different economies
Concepts: what to produce, how to produce it, for whom to produce it
Terms: market economy, mixed market economy, command economy, mixed economy, and traditional economy
Objective 8.3-explain the circular flow of economic activities and how interactions determine the prices of goods and services
Concepts: Factor market (household), Product market (business)
Terms: circular flow of economic activity, wages, salary, economic interdependence
Objective 8.4-how demand and supply affects prices
Concepts: Law of demand, law of supply, equilibrium price/market price, Influences on supply and demand
Terms: demand curve/schedule, supply curve/schedule, personal income, disposal income, complimentary goods, substitute goods
Objective 8.8-evaluate the investment decisions made by individuals, businesses, and the government
Concepts: fiscal policy, monetary policy, banking system, types of insurance
Terms: time deposit, demand deposit, credit cards, debit cards, mutual funds, commercial bank, Savings & Loan Associations, Federal Deposit Insurance Commission (FDIC), investment spending, capital investment, Insurance: life, medical, comprehension, liability, tight money, easy money
Objective 8.9-the role money plays in trading, borrowing, and investing
Concepts: types of money, function of money
Terms: collateral, money, barter, coins, currency, check, legal tender, credit, reserve requirement, medium of exchange, pension funds, mutual funds
Objective 9.1-identify phases of the business cycle and the economic indicators used to measure economic activities and trends.
Concepts: business cycle, economic indicators
Terms: Peak/prosperity, contraction/recession, expansion/recovery, Gross domestic product (GDP),
Standard of living, consumer price index (CPI), National debt
Objective 9.2-impact of government regulations
Concept: gov’t regulations
Terms: deregulation, environmental protection, work place safety, consumer protection, labor disputes, affirmative action
Objective 9.7-short and long term effects of fiscal policy
Concepts: Federal Reserve System (the “FED”), spending and taxation
Terms: interest rates, revenue, Taxes: personal income, excise, regressive, progressive, proportional, sales,
Additional Objectives
Objective 8.2-describe how the free enterprise system encourages private ownership of property and promotes individual initiative
Concepts: mixed market economy, economic goals of the Free Enterprise System
Terms: Private property, voluntary exchange, patents, copyrights, full employment, efficiency, productivity, specialization division of labor, security, equity, freedom
Objective 8.5-how prices change when there is a shortage or a surplus
Concepts: influences on prices
Terms: surplus, shortage, consumer tastes, minimum wage, inflation, deflation, wage and price control, interest rates, trickle-down effect, supply side economics
Objective 8.6-explain how changes in the level of competition can affect price and output levels
Concepts: market basics
Terms: buyers and sellers, monopoly, oligopoly, mergers, horizontal merger, vertical merger, conglomerated, multinational conglomerates
Objective 8.7-describe the roles and functions of various economic institutions and business orgs.
Concepts: Types of businesses, organized labor
Terms: sole proprietorship, partnership, corporation, cooperative, franchise, limited liability, unlimited liability, limited life unlimited life, Small Business Administration (SBA), stock, stock market, dividend, bond, craft union, industrial union, collective bargaining, mediation, arbitration, lockout, strike, Social Security Act of 1935, National Labor Relations Act of 1935, Fair Labor Standards Act of 1938, Taft-Hartley Act of 1947, Anti-trust laws, Labor Union