Unit 7B (MC) The Free Enterprise System Flashcards


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1

A ______________ occurs when spending equals revenue.

balanced budget

2

What shows an economy's production after the distortions of price increases have been removed?

real GDP

3

___________ programs provide health, nutritional, or income
payments to people meeting certain eligibility requirements.

Entitlement

4

What principle refers to the fact that a person is prevented from consuming private goods unless he or she pays for them?

exclusion

5

This type of tax takes the same percentage of income from everyone regardless of their earnings.

proportional

6

Which laws are designed to control monopoly power and to preserve and promote competition?

Antitrust

7

Which act established the Federal Deposit Insurance Corporation?

Glass-Steagall Banking Act

8

When passed by Congress, _________ become laws that authorize spending for a particular activity.

appropriations bills

9

The_______________is deducted from a worker's paycheck to fund Social Security and Medicare.

payroll tax

10

The ____________ is the interest rate the Federal Reserve charges on its loans.

discount rate