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