Government Appropriation Quiz
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Questions and Answers

What distinguishes appropriations from entitlements?

  • Appropriations are based on tax revenue. (correct)
  • Appropriations are automatic funding.
  • Entitlements are funded through discretionary spending.
  • Entitlements require legislative approval.

    • Which of the following best describes the primary function of a central bank?

  • To regulate interest rates for commercial banks.
  • To control government spending through tax credits.
  • To act as a bank of issue for regional banks. (correct)
  • To make loans directly to consumers.

    • How do legislators potentially obscure government spending?

  • Through the use of tax credits and subsidies. (correct)
  • By increasing direct government funding.
  • By creating direct appropriations.
  • Through public-awareness campaigns.

    • What type of assets can a bank of issue monetize?

    <p>Both productive and nonproductive assets.</p> Signup and view all the answers

    Which statement about tax expenditures is accurate?

    <p>They can complicate tax policy and accountability.</p> Signup and view all the answers

    What is the relationship between a central bank and commercial banks?

    <p>Central banks purchase existing loans from commercial banks.</p> Signup and view all the answers

    Why are appropriations considered complex?

    <p>They require continual legislative approval.</p> Signup and view all the answers

    What is a consequence of using tax credits and subsidies as a form of government expenditure?

    <p>They obscure spending from public scrutiny.</p> Signup and view all the answers

    What is the main function of the Capital Credit Reinsurance Corporation (CCRC)?

    <p>To insure loans discounted by the Federal Reserve</p> Signup and view all the answers

    Which of the following describes the purpose of the Capital Homestead Account (CHA)?

    <p>To serve as a tax-sheltered capital asset accumulation account</p> Signup and view all the answers

    What does the Capital Homestead Act aim to eliminate within the economic system?

    <p>Barriers to acquiring capital assets</p> Signup and view all the answers

    How is the concept of 'capitalism' viewed according to binary economists?

    <p>As an institutionalization of greed</p> Signup and view all the answers

    In the context of the Capital Homestead Exemption, what is the primary benefit for participants?

    <p>Tax-free accumulation of capital gains</p> Signup and view all the answers

    What principle is contrasted with the principle of justice in the context of charity?

    <p>Distribution according to need</p> Signup and view all the answers

    Which economic model is the Capital Homestead Act based on?

    <p>Binary growth model</p> Signup and view all the answers

    What aspect of capital ownership does the term 'universal capitalism' emphasize?

    <p>Wide distribution of capital ownership among individuals</p> Signup and view all the answers

    How is 'democratic capitalism' characterized in the economic context?

    <p>As a blend of political democracy and economic plutocracy</p> Signup and view all the answers

    What is the primary focus of binary economists regarding economic systems?

    <p>Achieving universal access to capital ownership</p> Signup and view all the answers

    What do defenders of democratic capitalism often overlook according to binary economists?

    <p>Universal access to capital ownership</p> Signup and view all the answers

    According to the content, how is the term 'capitalism' historically perceived?

    <p>A pejorative term coined by socialists</p> Signup and view all the answers

    What is one of the main criticisms of the conventional understanding of capitalism?

    <p>It tends to lead to mercantilism and monopoly</p> Signup and view all the answers

    What role does charity play compared to justice according to the provided content?

    <p>Charity is complementary to justice but distinct</p> Signup and view all the answers

    What is considered the highest form of charity according to Moses Maimonides?

    <p>Enabling the poor to become economically self-reliant</p> Signup and view all the answers

    How is social charity distinct from organized charity?

    <p>Social charity pertains to charitable acts driven by social justice.</p> Signup and view all the answers

    What was the main purpose of the Chicago Plan proposed in the 1930s?

    <p>To implement a 100% reserve requirement for bank loans</p> Signup and view all the answers

    In what way do Citizens Land Banks (CLBs) differ from Community Development Corporations (CDCs)?

    <p>CLBs provide direct control to citizen-shareholders, unlike CDCs.</p> Signup and view all the answers

    What does the term 'common good' refer to?

    <p>The societal structures that allow individuals to exercise their rights</p> Signup and view all the answers

    What principle fundamentally distinguishes collectivism in socialist theory?

    <p>Recognition of group ownership over individual ownership</p> Signup and view all the answers

    What is meant by 'consumption income'?

    <p>Income spent on consumer goods and services</p> Signup and view all the answers

    What is the primary function of commercial banks in the financial system?

    <p>To facilitate commercial transactions through deposits and loans</p> Signup and view all the answers

    What does a corporation, as a legal entity, primarily limit for its owners?

    <p>Liability on personal assets</p> Signup and view all the answers

    Which of the following statements about community investment corporations is true?

    <p>They aim for collective ownership by shareholders.</p> Signup and view all the answers

    Which concept within binary economics focuses on the right of individuals to acquire private ownership of capital assets?

    <p>Binary Property Right</p> Signup and view all the answers

    What is the primary role of collateral in a loan agreement?

    <p>To secure the loan repayment through existing wealth</p> Signup and view all the answers

    What role does the Central Bank have in the process of discounting?

    <p>It purchases assets at a discount from member banks</p> Signup and view all the answers

    What does binary economics challenge about traditional economic theories regarding scarcity?

    <p>It views shared abundance as achievable</p> Signup and view all the answers

    What does social charity primarily inspire individuals to do?

    <p>Acknowledge and strive to improve institutions</p> Signup and view all the answers

    What role does the common good play according to Rev. William Ferree?

    <p>It encompasses all levels of social institutions.</p> Signup and view all the answers

    What does the term 'barrier' refer to in the context of binary economics?

    <p>Legal or institutional rules preventing economic participation</p> Signup and view all the answers

    Which institution is designed to promote capital ownership among citizens while discounting loans?

    <p>Capital Credit Corporation</p> Signup and view all the answers

    In the context of charity, how does individual charity differ from social charity?

    <p>Individual charity is directed at persons, while social charity addresses institutions.</p> Signup and view all the answers

    What is meant by 'Binary Productiveness' in binary economics?

    <p>The increasing contribution of capital assets to overall output</p> Signup and view all the answers

    What is the purpose of the Capital Credit Insurance Corporation?

    <p>To provide credit insurance for Capital Homestead loans</p> Signup and view all the answers

    In binary economics, what is the relationship between economic justice and efficiency?

    <p>There is a natural synergy between the two</p> Signup and view all the answers

    What distinguishes binary growth from traditional economic growth models?

    <p>It emphasizes broad distribution of capital acquisition</p> Signup and view all the answers

    What is a defining characteristic of investment banks?

    <p>They act as intermediaries in securities transactions</p> Signup and view all the answers

    In the context of binary economics, what does 'capital' encompass?

    <p>All non-human factors of production, including tangibles and intangibles</p> Signup and view all the answers

    Which of the following is a key distinction of binary economics compared to classical economic theories?

    <p>It acknowledges the importance of both labor and capital in production</p> Signup and view all the answers

    What limitation exists for shareholders or creditors regarding capital assets of a corporation?

    <p>They can only make personal claims if the assets are pledged as collateral.</p> Signup and view all the answers

    Which term refers to loans made for the purchase of goods and services that do not generate income?

    <p>Consumer Credit</p> Signup and view all the answers

    How does capital credit function in modern economics?

    <p>It allows individuals to become capital owners through voluntary means.</p> Signup and view all the answers

    What characterizes a non-recourse loan?

    <p>The loan is secured by assets without personal risk to the borrower.</p> Signup and view all the answers

    Which type of credit is specifically interest-free and intended for productive projects?

    <p>Pure Credit</p> Signup and view all the answers

    How is pure credit different from conventional credit?

    <p>Pure credit does not involve already accumulated savings.</p> Signup and view all the answers

    What is the primary purpose of capital credit insurance?

    <p>To serve as collateral and cover loan default risks.</p> Signup and view all the answers

    What is the expected outcome of self-liquidating credit?

    <p>It results in profits covering the capital asset costs.</p> Signup and view all the answers

    Which description best fits consumer loans in terms of economic behavior?

    <p>Consumer loans are used for items that do not generate returns.</p> Signup and view all the answers

    Which term refers to loans expected to be paid back out of income generated by new assets?

    <p>Self-Liquidating Credit</p> Signup and view all the answers

    In the context of corporate accountability, what is suggested to overcome drawbacks faced by corporations?

    <p>Democratize corporate accountability and increase dividend distributions.</p> Signup and view all the answers

    What financing concept is linked to generating future profits to pay off loans?

    <p>Pure Credit</p> Signup and view all the answers

    What ethical concern is associated with interest charged for non-productive loans?

    <p>It is seen as usury under certain traditions.</p> Signup and view all the answers

    What distinguishes 'good' uses of money under Capital Homesteading?

    <p>Funding broadly owned private sector growth and production</p> Signup and view all the answers

    How is credit for Capital Homesteading projects generated?

    <p>Through the discount mechanism at interest rates based on production costs</p> Signup and view all the answers

    What is a characteristic of Customer Stock Ownership Plans (CSOP)?

    <p>They allow customers to regain ownership through share issuance based on patronage</p> Signup and view all the answers

    What causes economic deflation?

    <p>A contraction in the volume of currency or credit available</p> Signup and view all the answers

    What is primarily indicated by 'Demand/Pull' inflation?

    <p>More currency chasing fewer goods and services</p> Signup and view all the answers

    How is aggregate demand calculated?

    <p>By combining all expenditures on consumer goods, services, investment, and net exports</p> Signup and view all the answers

    Which of the following describes the term 'Imputed Rent'?

    <p>The equivalent income from renting one's home</p> Signup and view all the answers

    What is the role of the discount window in Central Banking?

    <p>It's a mechanism for the central bank to discount qualified loans</p> Signup and view all the answers

    How can Cost/Push inflation be addressed according to the provided information?

    <p>By removing market-driven pressures</p> Signup and view all the answers

    What does economic dilution result in?

    <p>An increase in total shares without increased productivity</p> Signup and view all the answers

    Which best describes the Individual Stock Ownership Plan (ISOP)?

    <p>A name for a Capital Homestead Account</p> Signup and view all the answers

    Under what conditions do loans for nonproductive uses arise in Capital Homesteading?

    <p>From past savings with market-determined interest rates</p> Signup and view all the answers

    What is the primary goal of the Global Justice Movement?

    <p>To restructure money and the marketplace for justice</p> Signup and view all the answers

    Which of the following accurately describes the Industrial Homestead Act?

    <p>A program established to enhance capital ownership</p> Signup and view all the answers

    What is represented by demand deposits?

    <p>Bank deposits that can be accessed on demand</p> Signup and view all the answers

    What does the term 'derived demand' refer to?

    <p>Demand for capital goods based on consumer demands</p> Signup and view all the answers

    What component is considered a barrier for most borrowers under the Capital Homesteading proposal?

    <p>Insufficient collateral</p> Signup and view all the answers

    In which scenario is 'pure credit' used incorrectly according to the Capital Homesteading framework?

    <p>For speculative purchases of secondary issuances</p> Signup and view all the answers

    What does the inappropriate application of monetary policy potentially result in?

    <p>A rise in nonproductive debt and economic inequality</p> Signup and view all the answers

    What percentage does the discount rate typically represent under binary economic policy?

    <p>0.5% or less</p> Signup and view all the answers

    What is a key characteristic of the 'Just Third Way' economic paradigm?

    <p>It emphasizes widespread capital ownership.</p> Signup and view all the answers

    What factor contributes to political dilution?

    <p>The introduction of new shareholders that does not undermine existing rights</p> Signup and view all the answers

    What defines 'Secondary Security' in financial terms?

    <p>Resold existing equity shares or bonds</p> Signup and view all the answers

    How is insurance for capital credit described in the context of commercial lending?

    <p>Substitute collateral for risky borrowers</p> Signup and view all the answers

    What is the purpose of pooling premiums paid to capital credit insurers?

    <p>To lower the risks associated with default</p> Signup and view all the answers

    Which statement accurately describes interest in the context of binary economics?

    <p>A portion of the profits due to the provider of financing</p> Signup and view all the answers

    Which type of inflation is controllable through fiscal and monetary policy?

    <p>Demand/Pull inflation</p> Signup and view all the answers

    What is the primary intention of distributism as proposed by G.K. Chesterton and Hilaire Belloc?

    <p>To enable widespread ownership of productive assets.</p> Signup and view all the answers

    What mechanism does an Employee Stock Ownership Plan (ESOP) use to acquire equity shares in a company?

    <p>The company borrows on behalf of employees to acquire shares.</p> Signup and view all the answers

    Which statement correctly defines the discount rate charged by the Federal Reserve?

    <p>The service fee charged by the Fed to member banks.</p> Signup and view all the answers

    In terms of values for loans, what is meant by 'discounting'?

    <p>Providing less cash than the loan's face value.</p> Signup and view all the answers

    What is an entitlement in the context of government funding?

    <p>An automatic cash payment or tax reduction.</p> Signup and view all the answers

    Which of the following correctly describes the role of the Federal Reserve System?

    <p>To control inflation and maintain the stability of the U.S. dollar.</p> Signup and view all the answers

    Which process encompasses the idea of 'ephemeralization' as described by R. Buckminster Fuller?

    <p>Enhancing the productiveness of capital relative to labor.</p> Signup and view all the answers

    What distinguishes an Employee Stock Accumulation Plan (ESAP) from an Employee Stock Ownership Plan (ESOP)?

    <p>ESAPs withhold voting rights on shares, whereas ESOPs typically conform to legal guidelines.</p> Signup and view all the answers

    How does distributive justice conceptually relate to wealth accumulation?

    <p>It focuses on an equitable distribution of resources.</p> Signup and view all the answers

    What key issue does Capital Homesteading seek to address regarding shareholders?

    <p>Shareholders should receive a full distribution of profits.</p> Signup and view all the answers

    In what way does the Federal Reserve Act of 1913 contribute to the economy?

    <p>It grants the Federal Reserve power to create money for private sector growth.</p> Signup and view all the answers

    What does the Federal Funds Rate specifically represent?

    <p>The rate commercial banks charge each other for short-term loans.</p> Signup and view all the answers

    What is the primary purpose of the regional Federal Reserve Banks?

    <p>To meet productive credit needs when local savings are insufficient.</p> Signup and view all the answers

    What is the primary distinction between the 'Just Third Way' and the versions of 'Third Way' associated with Bill Clinton and Tony Blair?

    <p>The 'Just Third Way' institutionalizes justice rather than greed or envy.</p> Signup and view all the answers

    Which principle of justice involves equal or equivalent exchanges between individuals?

    <p>Commutative Justice</p> Signup and view all the answers

    How does distributive justice differ from charity in its approach to resource distribution?

    <p>Distributive justice is based on contributions, while charity is based on needs.</p> Signup and view all the answers

    What is the ultimate aim of economic justice according to the content?

    <p>To enable individuals to realize their full potential beyond economics.</p> Signup and view all the answers

    Which principle relates to the moral responsibility of individuals in economic systems?

    <p>Social Justice</p> Signup and view all the answers

    What characterizes economic harmony according to the principles discussed?

    <p>Effective functioning of participative and distributive justice.</p> Signup and view all the answers

    What does the principle of limitation in the context of economic justice pertain to?

    <p>Restrictions on the exercise of property to prevent harm to others.</p> Signup and view all the answers

    What is the fundamental basis of justice as described in the content?

    <p>The dignity of each human person.</p> Signup and view all the answers

    What does participative justice ensure for individuals within economic systems?

    <p>The right to fully engage in institutions of the common good.</p> Signup and view all the answers

    Which type of justice addresses the division of goods based on cooperative contributions?

    <p>Distributive Justice</p> Signup and view all the answers

    Which term refers to the moral principles guiding economic institutions?

    <p>Economic Justice</p> Signup and view all the answers

    How does the concept of economic justice relate to personal potential?

    <p>It aims to liberate individuals to achieve their maximum potential.</p> Signup and view all the answers

    What is the relationship between distributive justice and productive contributions?

    <p>It aligns incomes with individual productive contributions.</p> Signup and view all the answers

    What ethical function does justice serve in human relationships according to the text?

    <p>It fosters harmony through equity and fairness.</p> Signup and view all the answers

    What is M1 in the context of U.S. money supply?

    <p>Currency, travelers checks, demand deposits, and other checkable deposits</p> Signup and view all the answers

    Which option correctly describes the principle of limitation?

    <p>It aims to prevent capital ownership that harms economic rights.</p> Signup and view all the answers

    How does M2 differ from M1 in the monetary aggregate classification?

    <p>M2 includes savings deposits and small-denomination time deposits.</p> Signup and view all the answers

    In what way did mercantilism impact global economic relationships?

    <p>It enhanced the inequality between wealthy and poor nations.</p> Signup and view all the answers

    What does M3 include in its monetary aggregate classification?

    <p>M2 plus Eurodollars, large-denomination time deposits, and institutional money funds.</p> Signup and view all the answers

    What does Maslow's Hierarchy of Needs suggest about human motivation?

    <p>Basic needs must be met before higher-level needs can be pursued.</p> Signup and view all the answers

    Which economic system lacks the principle of limitation as described?

    <p>Socialist economies where labor is the sole ownership.</p> Signup and view all the answers

    What characterizes the secondary market?

    <p>It facilitates the buying of instruments from previous owners.</p> Signup and view all the answers

    Which statement best describes the role of the principle of social justice?

    <p>It fosters collaboration to ensure participative and distributive justice.</p> Signup and view all the answers

    How was the concept of mercantilism historically perceived?

    <p>As a system favoring the wealthy at the expense of the poor.</p> Signup and view all the answers

    What principle did Kelso and Adler later rename to the principle of harmony?

    <p>Principle of limitation</p> Signup and view all the answers

    Which of the following does NOT describe a feature of M3?

    <p>Represents all deposits regardless of amount.</p> Signup and view all the answers

    Why is market glut significant in economic terms?

    <p>It represents excess production not sold at existing prices.</p> Signup and view all the answers

    What is one of the criticisms of economic systems based solely on ownership of labor?

    <p>They disconnect value from individual contributions.</p> Signup and view all the answers

    What does the term 'monetization' primarily refer to in financial contexts?

    <p>The conversion of one form of money into another</p> Signup and view all the answers

    Which of the following is NOT traditionally one of the roles of money?

    <p>Measure of community welfare</p> Signup and view all the answers

    How does 'New Money' differ from 'Old Money' according to the content?

    <p>New Money is created independent of past accumulations</p> Signup and view all the answers

    What is the purpose of the Open Market Committee within the Federal Reserve System?

    <p>To manage the U.S. money supply</p> Signup and view all the answers

    What is a key aspect of the proposal for a Negative Income Tax?

    <p>It redistributes income to those below a certain level</p> Signup and view all the answers

    Which of the following statements best captures Louis Kelso's perspective on money?

    <p>Money is not representative of the visible economy.</p> Signup and view all the answers

    In what way does Capital Homesteading propose to utilize citizen-owned banks?

    <p>To democratize capital ownership and facilitate economic growth</p> Signup and view all the answers

    What is the main distinction between 'non-recourse credit' and conventional loans?

    <p>Non-recourse credit limits recovery only to specific assets.</p> Signup and view all the answers

    What is indicated by the concept of 'personalism' in the context of economic theory?

    <p>The belief in the inherent equality of all human beings</p> Signup and view all the answers

    Which term describes financial instruments secured by agricultural assets?

    <p>Paper, Agricultural</p> Signup and view all the answers

    What is the fundamental focus of binary economics regarding wealth distribution?

    <p>Wealth creation should involve personal and societal capital democratization.</p> Signup and view all the answers

    In binary economics, what does the term 'barrier' typically refer to?

    <p>Obstacles to the equitable distribution of capital</p> Signup and view all the answers

    How is 'open market operations' best defined?

    <p>Buying and selling securities to influence the money supply</p> Signup and view all the answers

    Which best summarizes the role of a central bank in the economy?

    <p>To manage monetary policy and ensure financial stability</p> Signup and view all the answers

    What is the primary philosophy behind Justice-Based Management (JBM)?

    <p>Creating an ownership culture that integrates moral values</p> Signup and view all the answers

    Which statement best describes the voting passthrough mechanism in an ESOP?

    <p>Participants only have voting rights on major issues as defined by law.</p> Signup and view all the answers

    What negative consequence is associated with a wage system?

    <p>Dependence of wage earners on employers</p> Signup and view all the answers

    How does the marginal propensity to consume differ between wealthy and less wealthy individuals?

    <p>Wealthy individuals have a lower marginal propensity to consume.</p> Signup and view all the answers

    In the context of work, how is 'leisure work' defined?

    <p>Creative activities that promote self-actualization</p> Signup and view all the answers

    What does the Quantity Theory of Money state about the relationship between money supply and price level?

    <p>The money supply and the price level are directly proportional.</p> Signup and view all the answers

    Which economic concept is characterized by a situation where one individual's gain necessarily results in another's loss?

    <p>Zero-sum</p> Signup and view all the answers

    What is the essence of property as defined in the context of individual rights?

    <p>Property encompasses the aggregate rights, powers, and privileges one may possess.</p> Signup and view all the answers

    What is the potential impact of a concentrated wage system on society?

    <p>Greater conflict between different economic classes</p> Signup and view all the answers

    In which economic principle is the velocity of money a critical factor?

    <p>Both Currency Principle and Banking Principle.</p> Signup and view all the answers

    What is a characteristic of the reserve policy with a 100% requirement?

    <p>Banks must retain an equivalent dollar in assets for every dollar loaned.</p> Signup and view all the answers

    How does the concept of ownership in a binary economy differ from traditional views?

    <p>It allows individuals to own capital assets to support subsistence incomes.</p> Signup and view all the answers

    Which aspect of capital is highlighted by the term 'pure credit'?

    <p>Utilization of credit in transactions without immediate asset backing.</p> Signup and view all the answers

    What role does leisure work play according to Aristotelian views?

    <p>It represents the fulfillment of higher human needs.</p> Signup and view all the answers

    What outcome do Keynesian and monetarist schools of thought agree on regarding money supply changes?

    <p>Changes in money supply produce reciprocal changes in price levels.</p> Signup and view all the answers

    What challenge does binary economics present to conventional economic theories?

    <p>The acceptance of scarcity as a fundamental concept.</p> Signup and view all the answers

    What significant issue does the wage system create in the labor market?

    <p>It creates vulnerabilities for workers competing against technology and low-wage labor.</p> Signup and view all the answers

    What does 'rediscounting' by the central bank aim to facilitate?

    <p>Conversion of financial papers into new currency through central bank support.</p> Signup and view all the answers

    Which of the following best describes the implications of the 'currency principle' and 'banking principle' as per the content provided?

    <p>One principle views the price levels and money supply as reciprocal, while the other does not.</p> Signup and view all the answers

    What limitation is placed on property rights according to English common law?

    <p>Owners must adhere to laws preventing injury to others and general welfare.</p> Signup and view all the answers

    What distinguishes average propensity to consume from marginal propensity to consume?

    <p>Marginal propensity responds to incremental changes in income, while average does not.</p> Signup and view all the answers

    How is the concept of property fundamentally characterized in the provided context?

    <p>Property rights are social constructs enforced by law.</p> Signup and view all the answers

    What is emphasized as being done in 'closed systems' of capital financing?

    <p>A lack of capital ownership opportunities for the marginalized.</p> Signup and view all the answers

    What role does 'velocity of money' play in the Quantity Theory of Money?

    <p>It influences the money supply based on the velocity of transactions.</p> Signup and view all the answers

    What does Personalism emphasize about human rights?

    <p>Human rights are inherent to each individual.</p> Signup and view all the answers

    In the context of Economic Personalism, how are just wages determined?

    <p>Via market conditions guided by justice principles.</p> Signup and view all the answers

    What is one of the key institutions for promoting equal opportunity in capital ownership as described in Economic Personalism?

    <p>A just tax system.</p> Signup and view all the answers

    What is a fundamental characteristic of power as described in the context of Economic Personalism?

    <p>It must be diffused among citizens to ensure justice.</p> Signup and view all the answers

    Which principle does Personalism reject in terms of human empowerment?

    <p>The concept of human rights as state-given.</p> Signup and view all the answers

    How is economic power connected to political power according to the text?

    <p>There is a recognized linkage between them in society.</p> Signup and view all the answers

    What does price represent in a market economy as opposed to a centrally planned economy?

    <p>Price is determined by informed buyer and seller agreement.</p> Signup and view all the answers

    Which aspect of power is highlighted as a right of property?

    <p>Control over the fruits or income produced by owned property.</p> Signup and view all the answers

    What does the Just Third Way suggest about economic power and its allocation?

    <p>It must be shared equally among all individuals.</p> Signup and view all the answers

    What is the ultimate goal of Economic Personalism as it pertains to individual empowerment?

    <p>To ensure every person can fully realize their potential.</p> Signup and view all the answers

    What is the primary focus of power within a just society according to the principles outlined?

    <p>Ensuring equitable access and opportunity.</p> Signup and view all the answers

    What does a reserve requirement percentage signify in banking?

    <p>The minimum amount of cash the bank must maintain relative to its deposits.</p> Signup and view all the answers

    Which statement best describes Say's Law of Markets?

    <p>Production creates demand, which leads to consumption.</p> Signup and view all the answers

    What does the term 'just price' refer to in the economic context discussed?

    <p>The negotiated price between a buyer and seller.</p> Signup and view all the answers

    In binary economics, how is 'economic scarcity' defined?

    <p>The limitation of resources to a single use at a time.</p> Signup and view all the answers

    Which system does Economic Personalism seek to counteract through its principles?

    <p>Collectivist socialism.</p> Signup and view all the answers

    What is the purpose of risk premiums in loan agreements?

    <p>To compensate lenders for potential repayment default risks.</p> Signup and view all the answers

    According to Economic Personalism, what is vital for the support of human life and dignity?

    <p>Independent means to sustain oneself through ownership.</p> Signup and view all the answers

    What does 'ephemeralization' imply in the context of binary economics?

    <p>The evolution of technology to use fewer resources more effectively.</p> Signup and view all the answers

    What is a key characteristic of forced savings in binary economics?

    <p>Funds generated by reducing current consumption to acquire productive assets.</p> Signup and view all the answers

    What concept does 'scarcity, effective' represent in non-binary economics?

    <p>A situation where resources are perceived to be insufficient for needs.</p> Signup and view all the answers

    Which term describes the claim that one individual has over another in terms of obligations?

    <p>Right</p> Signup and view all the answers

    What is 'savings, past' in binary economics referring to?

    <p>Historical accumulation of capital through reduced consumption.</p> Signup and view all the answers

    Which aspect of capital ownership does binary economics focus on?

    <p>Direct ownership stakes for all consumers in enterprises.</p> Signup and view all the answers

    Which of the following describes the nature of bank reserves?

    <p>Funds held to cover potential customer withdrawals and obligations.</p> Signup and view all the answers

    What do critics say about the relationship between technological advances and wealth concentration?

    <p>Advances isolate ownership, creating disparities in wealth.</p> Signup and view all the answers

    What is the fundamental contrast between binary economics and traditional economic theories on scarcity?

    <p>Traditional theories suggest scarcity is inevitable, while binary economics sees it as solvable through innovation.</p> Signup and view all the answers

    How can 'new money' created under a fractional reserve system contribute to the economy?

    <p>Through investment in productive assets that promote economic growth.</p> Signup and view all the answers

    What key aspect does economic sovereignty emphasize?

    <p>The right to access economic opportunities</p> Signup and view all the answers

    How does a binary economy differ in its growth potential compared to a capital-intensive economy?

    <p>It allows capital incomes to be more widely dispersed</p> Signup and view all the answers

    What principle is emphasized by the concept of subsidiarity?

    <p>Decisions should be made at the closest level to the issue</p> Signup and view all the answers

    Louis Kelso's approach to overcoming economic scarcity is best described as being centered around what concept?

    <p>Voluntary private sector initiatives</p> Signup and view all the answers

    What does the term 'subsistence' imply in an economic context?

    <p>A stage of economic development barely meeting survival needs</p> Signup and view all the answers

    What is the primary effect of economic sovereignty on individual rights?

    <p>It enhances individual financial independence</p> Signup and view all the answers

    In binary economies, what challenge is posed by technological improvement?

    <p>It influences substitution methods for overcoming scarcity</p> Signup and view all the answers

    Which of the following best describes the role of shares in a corporation?

    <p>They represent ownership with varying degrees of claim</p> Signup and view all the answers

    What is the distinction between primary and secondary securities?

    <p>Primary securities are initially created, while secondary securities involve trading existing assets</p> Signup and view all the answers

    What effect does the principle of taxation have on individual economic activities?

    <p>It can hinder investment by reducing returns</p> Signup and view all the answers

    What does 'value-based management' refer to in an economic context?

    <p>Management that enhances the organization’s contribution to social value</p> Signup and view all the answers

    How is the 'capital credit reinsurance corporation' conceptually understood?

    <p>It supports individual capital ownership through risk sharing</p> Signup and view all the answers

    What is the underlying principle of justice within a binary economic framework?

    <p>Justice focuses on establishing equitable access to resources</p> Signup and view all the answers

    What fundamental economic condition does Louis Kelso's theory address?

    <p>The reconstruction of economic scarcity through social initiatives</p> Signup and view all the answers

    What principle requires every person to have access to the means and opportunity to contribute economic value?

    <p>Participative Justice</p> Signup and view all the answers

    According to participative justice, how is an individual's entitlement to receive determined?

    <p>By their relative contribution or participation</p> Signup and view all the answers

    What does social justice primarily aim to do within society?

    <p>Promote the common good</p> Signup and view all the answers

    Which of the following is a component of Justice-Based Leadership?

    <p>Charisma or Idealized Influence</p> Signup and view all the answers

    What is the formula for measuring value delivered to the customer in Justice-Based Management?

    <p>V=Q/P</p> Signup and view all the answers

    What aspect of leadership emphasizes the necessity for leaders to value themselves while also serving higher principles?

    <p>Servant Leadership</p> Signup and view all the answers

    In the context of Justice-Based Management, what is one major goal?

    <p>To create a culture of sustainable ownership</p> Signup and view all the answers

    Which of the following describes the concept of economic justice within a participative justice framework?

    <p>It connects the distribution of goods directly to participation and contribution.</p> Signup and view all the answers

    What does 'social justice tithing' signify?

    <p>Devoting time to enhance organizational and institutional effectiveness</p> Signup and view all the answers

    Which leadership style embodies the idea of empowering group members as a fundamental objective?

    <p>Justice-Based Leadership</p> Signup and view all the answers

    What is the key focus of binary economics regarding labor?

    <p>It emphasizes the improvements in human productive capability.</p> Signup and view all the answers

    In which context is social justice considered to operate within the social order?

    <p>At both macro and micro levels</p> Signup and view all the answers

    What does Justice-Based Management originally emphasize?

    <p>Value-Based Management</p> Signup and view all the answers

    What is a fundamental component of the principle-centered leadership aspect in Justice-Based Leadership?

    <p>Commitment to natural law principles</p> Signup and view all the answers

    An appropriation must be automatically granted without legislative approval.

    <p>False</p> Signup and view all the answers

    A central bank is a financial institution that exclusively makes loans to consumers and businesses.

    <p>False</p> Signup and view all the answers

    Tax expenditures can obscure government spending and reduce accountability to taxpayers.

    <p>True</p> Signup and view all the answers

    A bank of issue can only monetize nonproductive assets like government debt.

    <p>False</p> Signup and view all the answers

    The primary role of commercial banks is to function as a bank of issue.

    <p>False</p> Signup and view all the answers

    Tax revenues are a primary source of funds for appropriation processes in government.

    <p>True</p> Signup and view all the answers

    A central bank is typically the only institution allowed to create currency.

    <p>True</p> Signup and view all the answers

    The process of appropriations is strictly formula-determined and does not involve discretion.

    <p>False</p> Signup and view all the answers

    Commercial banks are primarily responsible for issuing currency in the economy.

    <p>False</p> Signup and view all the answers

    The central tenet of binary economics is that output can only be generated through human labor.

    <p>False</p> Signup and view all the answers

    The Capital Credit Corporation is designed to promote capital ownership by aggregating loans for discounting by the Federal Reserve.

    <p>True</p> Signup and view all the answers

    Members of the public can discount their personal loans at a central bank.

    <p>False</p> Signup and view all the answers

    Binary growth theory posits that economies grow larger when capital is acquired more broadly among the population.

    <p>True</p> Signup and view all the answers

    Binary economics accepts the inevitability of scarcity within economic systems.

    <p>False</p> Signup and view all the answers

    In binary economics, barriers refer to natural disasters that limit economic participation.

    <p>False</p> Signup and view all the answers

    Investment banks primarily take deposits from customers to make loans.

    <p>False</p> Signup and view all the answers

    The concept of 'Binary Property Right' refers to the restriction of capital ownership to wealthy individuals.

    <p>False</p> Signup and view all the answers

    The Capital Credit Insurance Corporation provides insurance against defaults on Capital Homestead credit.

    <p>True</p> Signup and view all the answers

    According to binary economists, financial insecurity is a key driver of economic freedom.

    <p>False</p> Signup and view all the answers

    Capital includes all non-human factors of production, such as land and machinery.

    <p>True</p> Signup and view all the answers

    A central bank's role includes controlling the interest rate policy.

    <p>True</p> Signup and view all the answers

    Binary economics suggests that monopolies are beneficial for economic participation.

    <p>False</p> Signup and view all the answers

    Binary Productiveness emphasizes the diminishing contribution of capital in economic growth compared to labor.

    <p>False</p> Signup and view all the answers

    The highest form of charity, according to Moses Maimonides, is to enable the poor man to remain dependent on others.

    <p>False</p> Signup and view all the answers

    Social charity encourages individuals to transform institutional faults rather than destroy them.

    <p>True</p> Signup and view all the answers

    Citizens Land Banks (CLBs) are categorized as nonprofit entities.

    <p>False</p> Signup and view all the answers

    Collectivism acknowledges personal ownership of land and resources.

    <p>False</p> Signup and view all the answers

    The common good encompasses the social structures enabling individuals to exercise their rights fully.

    <p>True</p> Signup and view all the answers

    Consumption income refers to income saved rather than spent on goods and services.

    <p>False</p> Signup and view all the answers

    A corporation is viewed as a legal entity that can enter contracts and limit liability for its owners.

    <p>True</p> Signup and view all the answers

    The Chicago Plan proposed in the 1930s suggested a 50% reserve requirement for banks.

    <p>False</p> Signup and view all the answers

    Community Development Corporations (CDCs) allow citizens to have direct ownership and control.

    <p>False</p> Signup and view all the answers

    The concept of the 'common good' is exclusively about the interests of individuals.

    <p>False</p> Signup and view all the answers

    The term 'collective' recognizes the importance of individual contributions within a group.

    <p>False</p> Signup and view all the answers

    The ownership of shares in a corporation grants shareholders direct control over corporate decisions.

    <p>False</p> Signup and view all the answers

    Citizens Land Cooperative (CLC) is synonymous with Citizens Land Bank (CLB).

    <p>False</p> Signup and view all the answers

    Collateral is wealth pledged as a guarantee for a loan repayment.

    <p>True</p> Signup and view all the answers

    The Capital Homestead Act allows any citizen to accumulate assets without taxes on their capital gains or dividend income.

    <p>True</p> Signup and view all the answers

    Capitalism, as defined by binary economists, emphasizes the ownership of capital by a small number of individuals.

    <p>True</p> Signup and view all the answers

    The term 'capitalism' was coined by Adam Smith as a neutral term for a free market system.

    <p>False</p> Signup and view all the answers

    The Capital Credit Reinsurance Corporation (CCRC) is designed to insure loans made in local commercial banks only.

    <p>False</p> Signup and view all the answers

    Charity is primarily understood as the distribution based on an individual's contribution to society.

    <p>False</p> Signup and view all the answers

    The Capital Homestead Account (CHA) is similar to a savings account and does not offer tax shelters for participants.

    <p>False</p> Signup and view all the answers

    The principle of distribution for justice operates on the idea of meeting basic human needs.

    <p>False</p> Signup and view all the answers

    Louis Kelso characterized 'universal capitalism' as a system where labor becomes the primary factor of production.

    <p>False</p> Signup and view all the answers

    Binary economists believe that traditional capitalism fosters equality among individuals.

    <p>False</p> Signup and view all the answers

    The Capital Homesteading model aims to provide universal access to capital ownership for every citizen.

    <p>True</p> Signup and view all the answers

    Charity, as defined in the content, is synonymous with justice when discussing socio-economic distributions.

    <p>False</p> Signup and view all the answers

    The main function of the Capital Credit Reinsurance Corporation (CCRC) is to serve as a last resort for loan defaults.

    <p>False</p> Signup and view all the answers

    The Capital Homestead Act aims to create barriers to capital accumulation among citizens.

    <p>False</p> Signup and view all the answers

    Advocates of the 'Just Third Way' believe capitalism is the ideal system devoid of any criticism.

    <p>False</p> Signup and view all the answers

    Future savings generated by Capital Homestead investments are treated as taxable income immediately.

    <p>False</p> Signup and view all the answers

    Shareholders or creditors can make personal claims on particular capital assets owned by the corporation during its operation.

    <p>False</p> Signup and view all the answers

    Democratizing corporate accountability can potentially overcome drawbacks of corporations.

    <p>True</p> Signup and view all the answers

    Credit refers exclusively to loans that have to be repaid with interest.

    <p>False</p> Signup and view all the answers

    Capital credit is designed to help individuals without sufficient past savings become capital owners.

    <p>True</p> Signup and view all the answers

    Non-recourse loans require the borrower’s personal assets to be at risk in the event of default.

    <p>False</p> Signup and view all the answers

    Pure credit relies on previously accumulated savings for repayment.

    <p>False</p> Signup and view all the answers

    Interest-free loans are considered usury if they are issued for non-productive purposes.

    <p>True</p> Signup and view all the answers

    Credit, Self-Liquidating refers to loans that are expected to cover costs of assets through future profits.

    <p>True</p> Signup and view all the answers

    The concept of pure credit includes transaction fees as part of its overall costs.

    <p>True</p> Signup and view all the answers

    A loan's risk can be insured through capital credit insurance under capital homesteading proposals.

    <p>True</p> Signup and view all the answers

    Under corporate structures, shareholders have unlimited personal liability for corporate debts.

    <p>False</p> Signup and view all the answers

    Consumer credit is used interchangeably with capital credit in financial terms.

    <p>False</p> Signup and view all the answers

    The Federal Reserve System's main monetary objective is to primarily promote economic growth.

    <p>False</p> Signup and view all the answers

    Distributism emphasizes the accumulation of wealth in a few hands.

    <p>False</p> Signup and view all the answers

    Under Capital Homesteading, money for nonproductive uses can be generated interest-free.

    <p>False</p> Signup and view all the answers

    The Chief distinction of pure credit compared to conventional credit is in the absence of interest.

    <p>True</p> Signup and view all the answers

    Credit understood as 'productive credit' aims to generate returns that repay the loan from new income.

    <p>True</p> Signup and view all the answers

    The CSOP allows regular customers to gain ownership rights in public utilities based on their patronage.

    <p>True</p> Signup and view all the answers

    A dividend is an automatic allocation of funds from an investment without the need for approval from the Board of Directors.

    <p>False</p> Signup and view all the answers

    Dilution, Economic occurs when new shares are added without increasing the productivity of capital assets.

    <p>True</p> Signup and view all the answers

    The shareholder's personal assets are always at risk when borrowing through a leveraged Employee Stock Ownership Plan.

    <p>False</p> Signup and view all the answers

    Under Capital Homesteading, shareholders would receive full dividends without the need for reinvestment.

    <p>True</p> Signup and view all the answers

    The discount rate is a fixed percentage that does not change regardless of economic conditions.

    <p>False</p> Signup and view all the answers

    The Federal Reserve Act of 1913 empowered regional banks to create money by rediscounting qualified loan papers.

    <p>True</p> Signup and view all the answers

    An Employee Stock Ownership Plan (ESOP) requires employees to invest their personal savings to acquire shares.

    <p>False</p> Signup and view all the answers

    Demand deposits refer to any category of savings that cannot be accessed upon request.

    <p>False</p> Signup and view all the answers

    Backing the currency with productive assets allows the money supply to expand in a growing economy.

    <p>True</p> Signup and view all the answers

    Ephemeralization is a concept describing the process of increasing the productiveness of labor relative to capital.

    <p>False</p> Signup and view all the answers

    Discounting is the process of a central bank purchasing qualified loans from commercial banks by creating currency.

    <p>True</p> Signup and view all the answers

    Economic Personalism is a term related to the concept of distributive justice.

    <p>False</p> Signup and view all the answers

    The aggregate demand represents the total demand across all sectors in an economy.

    <p>True</p> Signup and view all the answers

    The Federal Funds Rate is the interest rate that commercial banks charge for long-term loans.

    <p>False</p> Signup and view all the answers

    The term 'entitlement' refers to funds that must be appropriated by the government each time they are allocated.

    <p>False</p> Signup and view all the answers

    Political dilution results in a decrease of economic power for existing shareholders.

    <p>False</p> Signup and view all the answers

    Distributive justice focuses on how wealth is distributed among the individuals in a society.

    <p>True</p> Signup and view all the answers

    Deflation is characterized by more currency units available than there are goods and services.

    <p>False</p> Signup and view all the answers

    Duty is defined as a non-enforceable moral obligation to perform an act.

    <p>False</p> Signup and view all the answers

    Under the Capital Homesteading policy, local lenders do not charge any transaction fees for capital acquisition loans.

    <p>False</p> Signup and view all the answers

    Employee Stock Accumulation Plans (ESAPs) guarantee employees the right to vote on all shareholder issues.

    <p>False</p> Signup and view all the answers

    A CSOP creates an internal market for reselling shares only when there is a public market available.

    <p>False</p> Signup and view all the answers

    The Fed's discount window is only used by non-member banks for obtaining loans.

    <p>False</p> Signup and view all the answers

    Consumer demand is not a determinant of derived demand for capital goods.

    <p>False</p> Signup and view all the answers

    The discount operation of the Federal Reserve System is exclusively aimed at individual investors.

    <p>False</p> Signup and view all the answers

    Restructuring the global marketplace is a goal of the Global Justice Movement.

    <p>True</p> Signup and view all the answers

    Imputed Rent represents the actual rental income generated from a property.

    <p>False</p> Signup and view all the answers

    Cost/Push inflation cannot be controlled through fiscal and monetary policy.

    <p>True</p> Signup and view all the answers

    Secondary issuances refer to newly created shares sold directly by the original issuer.

    <p>False</p> Signup and view all the answers

    The principle of distributive justice is based solely on strict equality of results.

    <p>False</p> Signup and view all the answers

    The Industrial Homestead Act was developed by Louis Kelso in the year 1964.

    <p>True</p> Signup and view all the answers

    Economic justice aims to limit individuals' economic potential.

    <p>False</p> Signup and view all the answers

    Interest in binary economics is considered equivalent to the rent of money.

    <p>False</p> Signup and view all the answers

    Participative justice emphasizes the right of every individual to access economic resources equally.

    <p>True</p> Signup and view all the answers

    The concept of 'Just Third Way' promotes equitable ownership of capital among the population.

    <p>True</p> Signup and view all the answers

    Forced savings are associated with voluntary contributions made by individuals.

    <p>False</p> Signup and view all the answers

    The 'Just Third Way' institutionalizes envy as a necessary component of a moral society.

    <p>False</p> Signup and view all the answers

    Commutative justice is concerned with the equitable exchange of goods and services.

    <p>True</p> Signup and view all the answers

    Demand/Pull inflation is primarily caused by consumers having less money than goods available.

    <p>False</p> Signup and view all the answers

    Justice as a moral virtue is unrelated to the concept of equity.

    <p>False</p> Signup and view all the answers

    Primary securities are those that reflect newly created capital and are sold directly to investors.

    <p>True</p> Signup and view all the answers

    Capital credit insurance functions as a collateral substitute for lenders.

    <p>True</p> Signup and view all the answers

    In terms of distributive justice, the ideal distribution of resources is 'to each according to his contribution.'

    <p>True</p> Signup and view all the answers

    Economic harmony is achieved when either distributive or participative justice is fully operational.

    <p>False</p> Signup and view all the answers

    Artificial increases in production costs are a hallmark of Demand/Pull inflation.

    <p>False</p> Signup and view all the answers

    The 'Just Third Way' is similar to traditional capitalism as it institutionalizes greed.

    <p>False</p> Signup and view all the answers

    Interest-Free Credit refers to loans that are charged at zero interest rates.

    <p>True</p> Signup and view all the answers

    Social justice is primarily concerned with how individuals relate to their institutions.

    <p>True</p> Signup and view all the answers

    Louis Kelso and Mortimer Adler referred to economic justice as the 'principle of accumulation.'

    <p>False</p> Signup and view all the answers

    The foundation of justice is based on the dignity of each individual.

    <p>True</p> Signup and view all the answers

    Economic justice is a broader category that encompasses commercial justice.

    <p>False</p> Signup and view all the answers

    The principle of limitation allows for unlimited concentrations of capital ownership in an economy based on private property.

    <p>False</p> Signup and view all the answers

    M1 includes large-denomination time deposits and repurchase agreements.

    <p>False</p> Signup and view all the answers

    Mercantilism historically promoted the accumulation of gold and silver through trade protection and monopolies.

    <p>True</p> Signup and view all the answers

    M3 has been discontinued as of March 2006 by the Federal Reserve.

    <p>True</p> Signup and view all the answers

    Maslow's Hierarchy of Needs prioritizes self-esteem above survival and security needs.

    <p>False</p> Signup and view all the answers

    M2 includes all types of demand deposits at commercial banks.

    <p>False</p> Signup and view all the answers

    Market glut refers to production that can be sold at market prices.

    <p>False</p> Signup and view all the answers

    The secondary market is where financial instruments are sold by their original issuers.

    <p>False</p> Signup and view all the answers

    Binary economists have never referred to the principle of limitation as the principle of harmony.

    <p>False</p> Signup and view all the answers

    Savings deposits are included in the M1 monetary aggregate.

    <p>False</p> Signup and view all the answers

    Monetization is primarily the responsibility of private individuals rather than banks.

    <p>False</p> Signup and view all the answers

    The principle of economic justice by Kelso and Adler is solely concerned with the distribution of income based on needs.

    <p>False</p> Signup and view all the answers

    Money serves four essential roles: a medium of exchange, a store of value, a standard of value, and a measure of value.

    <p>True</p> Signup and view all the answers

    The definition of legal tender includes only physical currency issued by the government.

    <p>False</p> Signup and view all the answers

    Under Capital Homesteading, money is created through the accumulation of past savings.

    <p>False</p> Signup and view all the answers

    The Open Market Committee increases the money supply by selling Treasury securities.

    <p>False</p> Signup and view all the answers

    A primary market deals with the resale of financial instruments.

    <p>False</p> Signup and view all the answers

    Paper, Agricultural refers to financial instruments that are secured by agricultural assets.

    <p>True</p> Signup and view all the answers

    Under mercantilism, government intervention in the market aimed to protect domestic jobs.

    <p>True</p> Signup and view all the answers

    The largest components of M3 monetary aggregate include small-denomination time deposits.

    <p>False</p> Signup and view all the answers

    Negative Income Tax was proposed by economist Adam Smith.

    <p>False</p> Signup and view all the answers

    In binary economics, money is not considered a part of the visible sector of the economy.

    <p>True</p> Signup and view all the answers

    An individual can be legally considered a 'person' regardless of their social rank.

    <p>True</p> Signup and view all the answers

    New money under Capital Homesteading is financed through high-interest loans from traditional banks.

    <p>False</p> Signup and view all the answers

    Artificial persons, such as corporations and governments, have no legal rights or duties.

    <p>False</p> Signup and view all the answers

    Money provides a method of measuring values, obligations, and rights within an economic system.

    <p>True</p> Signup and view all the answers

    The quantity theory of money formula relates to the principles of Capital Homesteading.

    <p>False</p> Signup and view all the answers

    Capital democratization aims to limit private sector growth linked to citizen ownership of banks.

    <p>False</p> Signup and view all the answers

    Personalism emphasizes the equality of all human beings regarding natural rights.

    <p>True</p> Signup and view all the answers

    Commercial paper is typically secured by specific collateral.

    <p>False</p> Signup and view all the answers

    Under 100% reserves, every dollar of new money would be backed by productive liabilities.

    <p>False</p> Signup and view all the answers

    A bank is required to hold all of its financial assets in cash at the bank.

    <p>False</p> Signup and view all the answers

    Say's Law of Markets implies that production and consumption should be in balance.

    <p>True</p> Signup and view all the answers

    Economic scarcity is defined as insufficient resources for an economy's needs.

    <p>False</p> Signup and view all the answers

    Scarcity, Effective refers to a condition of insufficiency that is accepted in non-binary economics.

    <p>True</p> Signup and view all the answers

    The concept of 'ephemeralization' refers to doing less with more.

    <p>False</p> Signup and view all the answers

    Risk premiums in lending are generally added to cover anticipated risks of loan repayment.

    <p>True</p> Signup and view all the answers

    Savings observed in the present are referred to as 'Savings, Past' in binary economics.

    <p>False</p> Signup and view all the answers

    In binary economics, 'capital' encompasses only physical assets excluding human capital.

    <p>False</p> Signup and view all the answers

    The term 'Right' in legal contexts refers to a person's claim against another to perform or refrain from an action.

    <p>True</p> Signup and view all the answers

    Participative justice mandates the elimination of barriers to capital ownership.

    <p>True</p> Signup and view all the answers

    Binary economics suggests that technological advancements lead to an inevitability of effective scarcity.

    <p>False</p> Signup and view all the answers

    Social justice focuses solely on the individual good rather than the common good of society.

    <p>False</p> Signup and view all the answers

    Forced savings involve accumulating cash through increased consumption and less spending on goods.

    <p>False</p> Signup and view all the answers

    Justice-Based Leadership emphasizes the alignment of individual values with group values.

    <p>True</p> Signup and view all the answers

    According to binary economics, successful economic systems achieve a balance between ownership and profit distribution among consumers.

    <p>True</p> Signup and view all the answers

    The formula for measuring customer value in Justice-Based Management is V=Q/P.

    <p>True</p> Signup and view all the answers

    In binary economics, labor is viewed strictly as work for pay.

    <p>False</p> Signup and view all the answers

    Justice-Based Management was originally termed 'Value-Based Management'.

    <p>True</p> Signup and view all the answers

    Participative justice determines a person's entitlements based solely on their social status.

    <p>False</p> Signup and view all the answers

    Economic justice is unrelated to the distribution of capital ownership.

    <p>False</p> Signup and view all the answers

    The core of Justice-Based Leadership is to cultivate a culture of empowerment among all group members.

    <p>True</p> Signup and view all the answers

    The term 'economic justice' encompasses principles beyond merely the distribution of wealth.

    <p>True</p> Signup and view all the answers

    Justice-Based Management evaluates success based on short-term gains to investors.

    <p>False</p> Signup and view all the answers

    Personalism rejects the idea that human rights are created by the State.

    <p>True</p> Signup and view all the answers

    The term 'human capital' is accurately described as the capital itself in binary economics.

    <p>False</p> Signup and view all the answers

    Economic Personalism aims to concentrate economic power within a small group of people.

    <p>False</p> Signup and view all the answers

    Social justice requires a personal responsibility from each member of society.

    <p>True</p> Signup and view all the answers

    Transformational leadership is characterized by a focus on maintaining the status quo.

    <p>False</p> Signup and view all the answers

    A just society is structured to concentrate power to ensure efficiency.

    <p>False</p> Signup and view all the answers

    The chief institutions for universalizing access to capital ownership include a just monetary system.

    <p>True</p> Signup and view all the answers

    Economic Personalism does not recognize individual private property rights.

    <p>False</p> Signup and view all the answers

    Justice-Based Management (JBM) was originally termed to describe a 22nd Century leadership philosophy.

    <p>False</p> Signup and view all the answers

    Power can be eliminated from human society according to the principles of Personalism.

    <p>False</p> Signup and view all the answers

    Just prices in a market economy are determined by government intervention.

    <p>False</p> Signup and view all the answers

    In an ESOP, shares are owned directly by the employee participants.

    <p>False</p> Signup and view all the answers

    The concept of privilege legally describes the absence of right against a certain action.

    <p>True</p> Signup and view all the answers

    A wage system leads to economic equality among society's members.

    <p>False</p> Signup and view all the answers

    Maslow's hierarchy suggests that leisure work fulfills human needs below the security level.

    <p>False</p> Signup and view all the answers

    Economic Personalism emphasizes the role of state ownership in the economy.

    <p>False</p> Signup and view all the answers

    Just wages are best determined by a monopolistic market structure.

    <p>False</p> Signup and view all the answers

    Zero-sum scenarios allow one party to gain without another party suffering a loss.

    <p>False</p> Signup and view all the answers

    The Just Third Way aims to extend access to capital ownership as a fundamental human right.

    <p>True</p> Signup and view all the answers

    Wages are compensation for human labor, primarily utilized in a binary economy.

    <p>True</p> Signup and view all the answers

    Economic power is unrelated to the concentration of political power.

    <p>False</p> Signup and view all the answers

    Leisure work is considered a non-productive activity with no value to society.

    <p>False</p> Signup and view all the answers

    Power refers only to the capacity of individuals to effect change without any external influences.

    <p>False</p> Signup and view all the answers

    Voting passthrough in an ESOP is only required for typical shareholder issues.

    <p>False</p> Signup and view all the answers

    The concept of synergy is directly opposed to the idea of a zero-sum game.

    <p>True</p> Signup and view all the answers

    Price in a centrally planned economy is determined by the market.

    <p>False</p> Signup and view all the answers

    The concept of 'Productiveness' measures the contribution of economic factors to overall production.

    <p>True</p> Signup and view all the answers

    Aristotle viewed leisure work as trivial and unimportant to civilization.

    <p>False</p> Signup and view all the answers

    Economic scarcity in binary economies can only be overcome through government intervention.

    <p>False</p> Signup and view all the answers

    Louis Kelso is recognized for his contributions to 'post scarcity' economic theories.

    <p>True</p> Signup and view all the answers

    Under socialism, individual owners have exclusive control over the means of production.

    <p>False</p> Signup and view all the answers

    The principle of subsidiarity allows lower organizations to take over functions that higher organizations can perform.

    <p>False</p> Signup and view all the answers

    Shared abundance in a binary economy is achieved by concentrating capital ownership among a few individuals.

    <p>False</p> Signup and view all the answers

    Economic sovereignty includes the right to access all means to acquire income.

    <p>True</p> Signup and view all the answers

    Tax credits are essentially direct cash payments made by the government to eligible individuals.

    <p>False</p> Signup and view all the answers

    The term 'productivity' measures economic output only by considering labor contributions.

    <p>True</p> Signup and view all the answers

    A rich person has a higher marginal propensity to consume than a poor person.

    <p>False</p> Signup and view all the answers

    Synergy in economic terms refers to a situation where separate units produce an effect greater than the sum of their individual effects.

    <p>True</p> Signup and view all the answers

    The ultimate check on government power is to ensure the government remains economically independent from the people.

    <p>False</p> Signup and view all the answers

    The Quantity Theory of Money indicates that the money supply does not affect the price level in an economy.

    <p>False</p> Signup and view all the answers

    All economic growth models prioritize private property for economic sovereignty.

    <p>True</p> Signup and view all the answers

    Under a 100% reserve policy, banks must hold an equal amount of tangible assets for every dollar they lend.

    <p>True</p> Signup and view all the answers

    Profits are defined as the financial gain resulting from the use of capital without considering expenses.

    <p>False</p> Signup and view all the answers

    The definition of subsistence includes thriving under a diverse capital-based economy.

    <p>False</p> Signup and view all the answers

    A tax credit specifically requires taxpayers to spend their own money to qualify.

    <p>True</p> Signup and view all the answers

    The rights of property include the right to destroy or injure the objects owned.

    <p>True</p> Signup and view all the answers

    In binary economics, labor-intensive processes represent the highest level of economic development.

    <p>False</p> Signup and view all the answers

    In the banking principle of economics, the money supply is reciprocal to the price level.

    <p>False</p> Signup and view all the answers

    The concept of individual sovereignty relates solely to the political realm.

    <p>False</p> Signup and view all the answers

    Velocity of money is defined as the average number of times each unit of currency is spent in a year.

    <p>True</p> Signup and view all the answers

    Rediscounting by the central bank involves buying financial paper from commercial banks after it has already been discounted.

    <p>True</p> Signup and view all the answers

    The propensity to consume refers to the amount of income that individuals choose to save rather than spend.

    <p>False</p> Signup and view all the answers

    The 'Currency Principle' and 'Banking Principle' both agree on the role of velocity in determining the money supply.

    <p>True</p> Signup and view all the answers

    Property is defined as the physical objects owned by individuals.

    <p>False</p> Signup and view all the answers

    The average propensity to consume is higher among low-income families compared to high-income families.

    <p>True</p> Signup and view all the answers

    Study Notes

    Appropriation

    • Legislative process allocating funds to government programs on a discretionary basis, differing from automatic entitlement funding.
    • Tax breaks can obscure government spending, reducing transparency and accountability to taxpayers.

    Types of Banks

    • Bank: Financial institutions for deposits and loans.
    • Bank of Issue: Issues loans by printing currency backed by its assets.
    • Central Bank: Functions as a bank for commercial banks, involved in money creation and control of monetary policy via asset purchasing.
    • Commercial Bank: Facilitates economic transactions through deposits and loans, can create money when permitted.
    • Investment Bank: Acts as an intermediary in buying/selling securities.

    Binary Economics

    • Developed by Louis O. Kelso; divides production into human labor and capital.
    • Advocates for economic growth through shared ownership of capital, rejecting scarcity as inevitable.
    • Emphasizes that broad ownership of capital amongst individuals can create economic freedom and justice.
    • Identifies three principles: Binary Growth, Binary Productiveness, and Binary Property Right, promoting equitable capital ownership.

    Capital Instruments and Organizations

    • Capital: Non-human production elements, including land, equipment, and intellectual property.
    • Capital Credit Corporation (CCC): Promotes capital ownership through loan aggregation for discounts by the Federal Reserve.
    • Capital Credit Insurance Corporation (CCIC): Provides credit insurance for Capital Homestead credits, safeguards lenders against defaults.
    • Capital Homestead: Concept from the 19th century expanded to include ownership of advanced technologies for wealth accumulation.
    • Capital Homestead Account (CHA): A tax-sheltered account for accumulating capital assets and generating income.

    Economic Systems

    • Capitalism: Concentrated capital ownership with a significant proportion of the population employed with little ownership.
    • Advocated by Kelso as "universal capitalism," a system favoring individual ownership over labor dependence.
    • Critics argue capitalism fosters class division and monopolies.

    Charity and Social Responsibility

    • Charity: Moral principle involving altruism without expecting returns, focused on needs.
    • Social Charity: Guides individual behavior towards institutions, aimed at reforming rather than destroying.

    Historical Economic Proposals

    • Chicago Plan: 1930s proposal for a 100% reserve requirement in banking to prevent financial crises.

    Collective Ownership and Society

    • Collectivism: Denies personal ownership rights, contrasting with joint ownership models where individuals share ownership rights and profits.
    • Common Good: Framework for individuals to exercise rights that promote societal justice and personal fulfillment. Advocates cooperation among institutions for social development.

    Corporate Structure

    • Corporation: Legal entity limiting liability for owners, facilitating financial operations while separating personal assets from corporate debts.

    Consumption and Income

    • Consumption Income: Expenditures on consumer goods instead of savings or investments.### Corporate Accountability and Democracy
    • The industrial revolution and the Information Age have led to increased managerial abuses within corporations.
    • Corporations need to enhance contributions to society by balancing market productivity with consumer purchasing power.
    • Democratizing corporate accountability and improving transparency can mitigate corporate drawbacks.
    • Increasing corporate dividends to a broader base, especially workers, could improve stakeholder engagement.

    Economic Terms and Concepts

    • Cost: Represents the total of tangible and intangible charges related to producing goods and services, typically measured in currency.
    • Credit: Refers to loans that must be repaid, usually with interest or fees.
      • Capital Credit: Funds for feasible projects expected to generate income and repay loans from future earnings; enables capital ownership for those lacking savings.
      • Consumer Credit: Borrowed funds to purchase non-income generating consumer goods.
      • Interest-Free Credit: Loans not tied to existing savings; viewed differently across religions due to concepts of usury.
      • Non-Recourse Credit: Loans secured by project assets, shielding personal assets from default risks.
      • Pure Credit: Interest-free loans for productive projects based on future income-generating potential.
      • Self-Liquidating Credit: Loans forecasted to be repaid from the profits generated by the assets financed.

    Financial Systems and Policies

    • Two-Tiered Credit System: Differentiates between beneficial uses of credit (capital ownership growth) and harmful (nonproductive debts).
    • Currency: Standardized tokens of value used as money within an economy.
    • Customer Stock Ownership Plan (CSOP): A model enabling regular customers of utilities to gain ownership shares based on their patronage.

    Economic Dynamics

    • Demand: The desire for goods/services supported by the ability to make legal transactions.
      • Aggregate Demand: Total demand calculated from consumer goods, services, investments, and net exports.
      • Effective Demand: Income allocated for consumption rather than reinvestment.
    • Dilution: Two types exist:
      • Economic Dilution: Reduction in company asset values due to new shares without profit increases.
      • Political Dilution: Addition of shareholders without diminishing existing shareholders' economic value.

    Monetary Concepts

    • Discount Rate: The interest percentage central banks reduce for loans; essential for monetary policy.
    • Discounting Process: Central banks create currency or demand deposits to purchase qualified loans at a discount.
    • Dividends: Profit distributions to shareholders, traditionally approved by a corporation’s board of directors.

    Ownership Structures

    • Employee Stock Ownership Plan (ESOP): A method allowing employees to acquire ownership shares in their companies without personal financial risk.
    • Capital Homesteading: A policy aimed at spreading ownership and financing for new capital via interest-free credit, backed by progressive assets.

    Economic Models and Movements

    • Global Justice Movement: An initiative focusing on restructuring the global economic framework to align with social and economic justice principles.
    • Distributism: Advocated by figures like G.K. Chesterton, promoting small ownership of productive assets to distribute wealth more equitably.

    Current Economic Challenges

    • Inflation: A rise in pricing levels categorized as Demand/Pull or Cost/Push inflation.
    • Deflation: A fall in price levels, often a result of reduced money supply leading to fewer units of currency available for an unchanged amount of goods and services.
    • Federal Reserve System: Established by the Federal Reserve Act of 1913; responsible for controlling inflation and ensuring stability in the U.S. dollar, primarily acting as a lender of last resort.
    • Entitlement: Automatic government funding allocations, such as subsidies, differing from appropriations which need approval each time.

    Understanding these economic principles and corporate structures is essential for navigating the complexities of modern financial systems and advocating for more equitable practices.### Commercial Capital Credit Insurance

    • Serves as a substitute for collateral, aiding borrowers with limited savings.
    • Protects lenders from risks associated with loans for purchasing corporate growth shares under Capital Homesteading.

    Interest

    • Represents a portion of project profits due to financing provisions, commonly viewed as a "charge for money usage."
    • Accurately defined as a "service charge" or "transaction fee" when money is created using "pure credit."

    Security Issuances

    • Primary Issuance: Newly issued equity shares or bonds from issuers, can be government or private entities.
    • Secondary Issuance: Existing equity shares or bonds sold by previous holders, typically traded on exchanges; speculative values drive prices.
    • Under Capital Homesteading, speculative purchases of secondary issuances are restricted to "old money."

    Just Third Way

    • Proposes a free market that democratizes money and credit access for all, promoting individual ownership of income-producing capital.
    • Represents a third alternative to socialism and capitalism, aiming to disperse capital ownership and prevent economic corruption.
    • Advocates for the restoration and extension of private property rights to key underpin economic democracy.

    Justice

    • Defined as universal principles guiding moral judgments, emphasizing respect for rights and equity.
    • Encompasses categories: Commutative (value exchanges), Distributive (proportionality in distribution), and Economic (foundational moral principles in economic interactions).

    Justice Types

    • Commutative Justice: Focuses on exact exchanges in transactions; e.g., a 5debtneeds5 debt needs 5debtneeds5 repayment.
    • Distributive Justice: Assesses proportionality in distributions based on contributions, defining just wages and profits through market dynamics.
    • Economic Justice: Guides the establishment of fair economic institutions that enable individual potential development.

    Participative and Social Justice

    • Participative Justice: Advocates for universal access to means of contribution through labor and capital; rewards based on participation.
    • Social Justice: Centers on the common good, ensuring equal access to resources for all societal members and facilitating collaboration for institutional reform.

    Justice-Based Leadership (JBL)

    • Aligns values and actions across levels of an organization based on justice principles, integrating aspects of servant and transformational leadership.
    • Aims to empower individuals within organizations, strengthening overall group effectiveness.

    Justice-Based Management (JBM)

    • A management framework rooted in principles of justice, aimed at creating sustainable ownership cultures and maximizing customer value.
    • Measures success through customer value delivery insightfully factoring in quality and price dynamics.

    Labor

    • Defined in binary economics as all forms of human work contributing to economic processes rather than merely expressed through capital appreciation.

    Monetary Aggregates

    • M1: Includes currency, travelers checks, and demand deposits; essential for understanding liquidity in the economy.
    • M2: Encompasses M1 plus savings deposits and small time deposits; indicates a broader measure of money supply.
    • M3: Previously contained M2 plus large deposits and institutional funds; discontinued as a metric in 2006.

    Market Dynamics

    • Market Glut: Describes a condition where production exceeds market demand, impacting pricing.
    • Primary Market: Transactions involve direct purchases from original issuers.
    • Secondary Market: Deals with transactions of financial instruments among other parties, distinct from the original issuer.

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    Test your knowledge on the legislative process of appropriation. This quiz covers how funds are allocated to government programs and the differences between appropriations and entitlement programs. Discover key concepts and legislative practices involved in governmental budgeting.

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