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Questions and Answers
Which payment system would likely be used for school tax?
Which payment system would likely be used for school tax?
- Interest group payment system
- Client payment system (correct)
- Majoritarian payment system
- Entrepreneurial payment system
What type of payment system is exemplified by social security?
What type of payment system is exemplified by social security?
- Majoritarian payment system (correct)
- Entrepreneurial payment system
- Client payment system
- Interest group payment system
Which example best fits an interest group payment system?
Which example best fits an interest group payment system?
- State income tax
- Public transportation funding
- National healthcare
- AARP membership dues (correct)
Which type of payment system involves everyone benefiting from the contributions?
Which type of payment system involves everyone benefiting from the contributions?
Which payment system involves a select group benefiting from the contributions?
Which payment system involves a select group benefiting from the contributions?
Flashcards
Majoritarian Policy
Majoritarian Policy
A type of policy where everyone benefits from a program, and everyone contributes to it.
Client Policy
Client Policy
A type of policy where benefits go to a specific group, and everyone in society contributes through taxes or other forms of funding.
Interest Group Policy
Interest Group Policy
A type of policy where benefits go to a specific group, and the group itself contributes. This can be through lobbying for government funding or private donations.
Entrepreneurial Policy
Entrepreneurial Policy
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Types of Public Policy
Types of Public Policy
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Study Notes
Fiscal Policies to Solve Problems
- Inflation can be solved by raising taxes or decreasing government spending.
- Unemployment can be solved by lowering taxes or increasing government spending.
Tax Types
- Everyone benefits taxes apply to everyone (e.g., social security).
- A group benefits taxes support specific groups (e.g., national healthcare, AARP or NRA).
- Progressive taxation: higher percentage as income rises.
- Regressive taxation: higher percentage as income decreases.
- Proportional taxation: everyone pays the same percentage.
Monetary Policy
- General idea: The Federal Reserve can address issues through monetary policy.
- Fight inflation: Take money out of people's hands.
- Combat unemployment: Put money into people's hands.
Interest Rates and Reserves
- Discount rate: The interest rate the Federal Reserve charges other banks.
- Raising the rate: Combats inflation.
- Lowering the rate: Helps address unemployment.
- Reserve ratios: The amount of money banks must keep in reserve.
- Higher reserve ratios: Curtail inflation.
- Lower reserve ratios: Can stimulate the economy.
Government Actions to Address Unemployment
- Open market committee (buying and selling bonds): Tool to influence inflation and unemployment.
- Buying securities: Can fight unemployment.
- Selling securities: Can fight inflation.
Economic Philosophies
- Keynesian economics: Belief in government spending to promote economic growth and stability.
- Supply-side economics: Belief in tax cuts and fewer regulations to drive economic growth and stability.
- Laissez-faire: Idea of limited government intervention in the economy.
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