Questions and Answers
An appropriation differs from an ______ in that funds allocated via an entitlement program are automatic.
entitlement
Legislators can hide government spending through the use of ______, tax subsidies, rebates, exemptions and other tax breaks.
tax credits
A bank of issue ‘monetizes’ ______ that may be either productive and self-liquidating or nonproductive.
assets
A central bank functions as a bank of issue for a region’s ______ banks.
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A central bank differs from a commercial bank or other financial institution in that it purchases ______ and other assets.
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Such practices decrease government’s accountability to ______ and add to the complexity of tax policy.
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A financial institution that takes deposits and makes loans is known as a ______.
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The appropriations process allocates funds on a ______ rather than a formula-determined basis.
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A central bank purchases assets at less than face value in a process called ______.
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Members of the general public are not usually permitted to discount their personal loans at a ______.
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A commercial bank takes deposits and makes loans to facilitate ______ transactions.
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The financial institution that buys and sells securities is called an ______.
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In binary economics, a ______ is anything that inhibits or prevents full participation in the economic process.
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Binary economics was developed by lawyer-economist Louis O. ______ in the 1950s.
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Binary economics divides the factors of production into two parts: human ('______') and non-human ('capital').
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One tenet of binary economics is the equitable distribution of future wealth and ______ throughout society.
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Binary economist Robert Ashford identifies three concepts: binary productiveness, binary property right, and binary ______.
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The right of every person to acquire capital assets is known as the binary ______.
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Capital in binary economics includes land, plant and equipment, and advanced technological ______.
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The Capital Credit Corporation is designed to promote capital ownership among all ______.
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The ______ Credit Insurance Corporation would provide credit insurance against default on Capital Homestead credit.
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Binary economics argues for limited economic power of the ______.
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A commercial bank may function as a ______ bank offering personal financial services.
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According to the Talmudic scholar Moses Maimonides, the highest form of charity is to enable the poor man to lift himself out of ______.
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Social charity is the virtue that guides us in how we behave toward our ______.
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This social virtue inspires us to love our institutions as we love our ______.
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Social charity is different from organized charity, which is a form of ______ charity.
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The Chicago Plan proposed a ______% reserve requirement as a means of addressing financial chaos.
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Citizens Land Bank is an expanded ownership mechanism designed as a for-profit, professionally managed ______.
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Collateral is existing wealth pledged as security for a ______.
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Collectivism denies the right of any individual to acquire a personal ______ stake in land.
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The common good establishes the conditions for the exercise of the natural freedoms indispensable for the ______ of human initiatives.
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Community Investment Corporations are for-profit entities related to the Citizens Land ______.
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Consumption Income refers to income expended on the purchase of consumer goods, rather than on direct investment or ______.
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A modern business ______ is an institution or legal entity that limits liability for its owners.
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A corporation facilitates access to financial ______, insulating shareholders from risk.
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The assets of a corporation are owned collectively by the corporation itself, while shareholders own shares of the company’s ______.
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The common good aims toward the ______ and development of each human person.
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The CCRC acts as an 'insurer of last resort' for loans made under Capital ________.
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The ________ would 'insure the insurers' of loans discounted by the Federal Reserve.
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Capital Homesteading is designed to broaden the ownership of ________ and advanced technologies.
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A Capital Homestead Account (CHA) is a tax-sheltered capital asset accumulation ________.
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The Capital Homestead Act allows individuals to accumulate assets in a tax-sheltered Capital Homestead ________.
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The principle of distribution for charity is 'to each according to his ________.'
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_______ is often confused with 'free markets' or 'democracy' but has historically resulted in mercantilism.
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Advocates of the 'Just Third Way' believe capitalism institutionalizes ________.
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In contrast to charity, the principle for justice is 'to each according to his ________.'
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The term 'capital ________' was used by socialists as a pejorative.
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The CCRC would recover 'risk ________' for Capital Homestead credit through debt servicing charges.
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Binary economists assert that capitalism promotes a wide distribution of private ownership of ________.
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Capital Homestead Exemption refers to the amount that a participant can accumulate without paying ________ on his or her capital accumulations.
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The Capital Homestead Act aims to universalize access to the means of acquiring capital ________.
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Charity is inspired by love and respect for the inherent ________ and worth of every human person.
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No shareholder or creditor may make a personal claim on any particular capital ______ owned by the corporation.
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The corporation has become the arena for growing abuses by those who manage and ______ them.
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Most drawbacks of the corporation can be overcome by democratizing corporate accountability and ______ systems.
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Cost is usually expressed or measured in units of ______.
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Credit is a loan of money to be ______, usually with an added amount of interest.
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Capital credit is designed to advance outside funds to be repaid with future ______.
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Interest charged for non-productive loans is considered ______ under certain religious traditions.
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Non-recourse loans insulate the borrower from the risk of ______.
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Pure credit is based on a system of enforceable ______.
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In business loans for new capital formation, pure credit would be monetized as newly created, asset-backed, ______ money.
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Pure credit enables the borrower to finance feasible capital projects that create future ______.
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Credit, self-liquidating loans are expected to cover the costs of capital assets out of future ______.
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Pure credit is backed by the loan paper, the shares purchased with the loan funds, and the present value of the productive ______ purchased.
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Loans made for productive purposes without involving existing savings are classified as ______ loans.
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Under capital homesteading, pure credit is backed by capital credit insurance and ______, to cover the risk of loan default.
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The discount operation of the Federal Reserve System has been limited to saving enterprises that are 'too big to fail' or foreign economies unable to service their foreign ______.
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Imputed Rent is the rental value of a person's home treated by some economists as the equivalent of the ______ one would receive if renting out their personal residence.
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The Industrial Homestead Act was developed in ______ by Louis Kelso and David Lawrence.
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Demand/Pull inflation results from more units of currency 'chasing' the same or fewer goods and ______.
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Cost/Push inflation results from artificial increases in labor costs or market-driven increases in the costs of ______.
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Insurance to protect commercial lenders against the possibility of ______ on the part of the borrower is known as Capital Credit Insurance.
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Interest is derived from 'ownership ______', referring to a portion of profits due to the provider of the financing.
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Newly issued equity shares or bonds reflecting new capital are called ______ securities.
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Outstanding equity shares or bonds reflecting existing securities are known as ______ securities.
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The Just Third Way is a socio-economic paradigm that offers a third alternative to ______ and socialism/communism.
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In the Just Third Way, widespread dispersion of ______ functions as an economic check against corruption and abuse.
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Binary economics divides the factors of production into two parts: human and non-human ______.
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The basis for economic democracy is the restoration of the full rights of property and extension of ______ property to every individual.
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Triple bottom line ownership focuses on economic empowerment, with universal access to direct ownership of income-producing ______.
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The 'Just Third Way' institutionalizes ______ as opposed to greed and envy.
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Inflation can be overcome through substitution, technological advances, or ______.
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Justice disposes one person to respect the rights of others and to establish equity and ______.
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A financial system that promotes the democratization of money and credit is referred to as the ______.
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Commutative justice deals with exchanges of equal or equivalent ______.
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Distributive justice is based on a proportionality of ______ given and received.
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Economic justice encompasses moral principles that guide people in maintaining economic ______.
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The triad of interdependent principles of economic justice includes Participative Justice, Distributive Justice, and ______ Justice.
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Social Justice places a personal ______ on every individual to correct economic institutions.
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The principle of limitation refers to the restriction on a person's ______ that may harm others.
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Economic harmony exists when participative and distributive justice are working fully for every ______.
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Justice reflects the qualities of balance and ______.
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Justice, as a moral virtue, guides interactions between ______.
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Distributive justice is linked to the sanctity of property and ______.
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Economic justice aims to enable each person to develop to the full extent of his or her ______.
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The distributive principle of justice is based on 'to each according to his ______.'
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The amount paid for the loans is usually less than face value, or at a __________.
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Distributism was mainly concerned with breaking up current accumulations of __________.
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Dividends must be proposed and approved by the __________ of a corporation.
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An __________ is a legally enforceable obligation to do or not to do an act.
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Employee Stock Ownership Plan (ESOP) can borrow on behalf of employees as a group to acquire __________ in the employer company.
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Under Capital Homesteading, shareholders would receive a full __________ of their share of profits.
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Ephemeralization refers to the process of 'doing more with __________.'
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The Federal Funds Rate is the interest rate that commercial banks charge one another for very short-term __________ loans.
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The Federal Reserve Act of 1913 established the central bank of the __________.
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Capital Homesteading policies would offer credit and tax __________ to encourage companies.
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Economic Personalism is also referred to as __________.
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The right to vote one’s own shares on standard shareholder issues is typically withheld from employee owners under an __________.
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In binary economics, __________ is anything that inhibits or prevents full participation in the economic process.
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The Federal Reserve System consists of the Board of Governors and twelve regional Federal Reserve __________.
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A key monetary reform under Capital Homesteading distinguishes between 'good' uses of money and credit and 'bad' uses of ______.
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The Fed's discount window would be available exclusively to member banks and members of the ______ system.
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Credit and 'new money' for Capital Homesteading would be generated 'interest-free' through the ______ mechanism of the central bank.
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Credit and money for nonproductive uses would come from past savings, commonly referred to as ______.
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The CSOP would link regular customers as owners to the enterprise’s future investment opportunities and ______ growth.
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Default refers to the failure or inability of a borrower to repay a ______.
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Deflation is defined as a contraction in the volume of available money or ______.
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Aggregate demand is the sum of all demand in an ______.
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Economic dilution constitutes an erosion of property rights for existing ______.
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The discount rate is the percentage by which a central bank reduces the amount of cash printed or ___________ created.
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Political dilution is not a dilution of property rights as long as the economic values of existing ______ are not diminished.
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Demand is the want or desire to possess a good or ______.
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Demand deposits are a category of money made up of bank deposits subject to ______ on demand.
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__________ mechanisms prevent economic dilution by enhancing production without negatively impacting existing shareholders.
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The process by which a central bank purchases qualified loans is known as ______.
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George Mason specified access to 'the means of acquiring and possessing ______.'
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Participative justice refers to the ordering of our economic ______.
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In economic justice, distribution follows ______.
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Social justice is the particular virtue whose object is the ______ good of all human society.
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Social justice guides humans as social beings in creating and perfecting organized human ______.
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Justice-Based Leadership aligns individual and group values around a shared understanding of clearly defined principles of ______.
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The four components of transformational leadership embodied in JBL include charisma, inspirational motivation, intellectual stimulation, and ______ of the individual.
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Empowerment of others is a fundamental objective of ______-Based Leadership.
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JBM provides a framework of principles for creating sustainable ownership ______.
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Value to the customer can be measured by the formula 'V=Q/P', where V is ______.
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Labor in binary economics refers to all forms of physical, mental and ______ work.
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Justice-Based Management originally started as ______-Based Management.
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Actions such as 'social justice tithing' recognize a personal ______ to improve organizations.
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The goal of JBL is to center all aspects of our lives on correct ______.
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Social justice imposes a personal ______ on each member of society.
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The principle of limitation prevents concentrations of capital ownership that are injurious to the economic rights of ______.
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The M1 monetary aggregate includes currency outside the U.S. Treasury, travelers checks, and demand ______.
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M2 consists of M1 plus savings deposits, small-denomination time deposits, and retail money market ______.
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The M3 monetary aggregate was discontinued by the Federal Reserve in ______.
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Mercantilism is a system where those holding concentrated economic power use government to perpetuate ______ and trade protections.
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Maslow’s Hierarchy of Needs categorizes human needs from survival and security to self-esteem and ______.
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Binary economics argues for limited economic ______ of the powerful.
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A financial institution that buys and sells securities is known as a ______.
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Community Investment Corporations are for-profit entities related to the Citizens Land ______.
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The common good aims toward the welfare and ______ of each human person.
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The Capital Homestead Act allows individuals to accumulate assets in a tax-sheltered Capital Homestead ______.
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The principle of distribution for charity is 'to each according to his ______.'
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The measure of economic justice, as pointed out by Kelso and Adler, emphasizes social ______.
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Market glut refers to production that cannot be cleared at market ______.
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In the context of binary economics, the right to acquire capital assets is known as the binary ______.
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Under 100% reserves, every dollar of new money would be backed by productive ______.
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A bank need not hold all of its financial assets in ______ at the bank.
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A ______ is a legally enforceable claim of one person against another.
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Economists following the paradigm of Thomas Malthus equate economic scarcity with ______.
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Scarcity in an economic sense refers to the choice as to what use to put a specific ______.
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Binary economics aims to create a more free and just market ______.
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Effective scarcity exists as an unyielding constraint on growth and ______.
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The method by which productive assets are purchased with cash is called ______ savings.
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A central bank functions as a bank of issue for a region’s commercial ______.
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Savings used to repay loans for capital formation is an example of ______ savings.
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Say’s Law of Markets states that production and consumption should be in ______ in a market economy.
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Scarcity, in economic terms, refers to the quality of ______.
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The term in binary economics for existing pools of savings is called ______ savings.
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A bank's obligations are primarily presented for ______.
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Scarcity can be overcome through invention and more efficient exploitation of existing ______.
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The term was later changed to 'Justice-Based Management (JBM)' when 'Value-Based Management (VBM)' began being used by ______ and various business schools.
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Voting Passthrough is the equivalent of the right to vote 'one’s shares in a ______' ownership arrangement such as an ESOP.
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Most people in a wage system have only their labor to sell, making them dependent on their ______.
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Work, Leisure refers to the unpaid work outside of economics that is done for its own sense of ______.
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The wage system can lead to economic ______, conflict between haves and have-nots, and political manipulation.
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Leisure work can be seen as human activity geared toward fulfilling human needs above the level of security on Maslow’s ______.
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In game theory, 'zero-sum' refers to a scenario where one person can only win or gain if someone else ______.
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Wages are compensation for ______ labor.
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The concept of 'capital ______' was historically regarded as a negative term by socialists.
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Binary economics asserts that capitalism promotes a wide distribution of private ownership of ______.
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Louis Kelso can be termed a 'post scarcity' economist for devising a logical framework for harnessing voluntary private-sector ______.
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In social and economic terms, a state of 'pre-development' is referred to as ______.
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Economic sovereignty is often misstated as the right to a living ______.
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The ultimate check on government power is to make government economically dependent on the ______.
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The principle of ______ states that no higher organization may arrogate to itself a function which a lower organization can adequately perform.
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In binary economics, any insufficiency resulting from economic ______ can be overcome through substitution or improvements in technology.
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A unit of equity ownership in a corporation is generally referred to as ______.
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Socialism is a system in which the state assumes ownership or control of the means of ______.
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The tax ______ allocates funds without either legislating an entitlement or approving an appropriation.
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A logical framework for overcoming basic social and economic problems is referred to as the ______ challenge of the 21st Century.
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Sovereignty is the intrinsic possession of and ability to exercise inalienable ______.
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The force resulting from mutually cooperating action producing an effect greater than any component acting alone is known as ______.
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Access to the political ballot by economically sovereign citizens is essential to safeguard one's ______ sovereignty.
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Binary economics argues for limited economic power of the ______.
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The economic process should allow each individual to function as a financially independent ______.
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The process of creating general media of exchange is known as ______.
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Money serves as a medium of exchange, a store of ______, and a standard of value.
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Newly created money that is independent of past accumulations is referred to as ______ money.
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According to Milton Friedman, a Negative Income Tax aims to subsidize basic ______ incomes.
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Open Market Committees govern the U.S. ______ supply.
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According to binary economists, the two factors of production include human and ______.
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Capital Homesteading promotes capital ______ among all citizens.
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The principle of distribution for charity is 'to each according to his ______.'
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Paper instruments derived from agricultural assets are known as ______ paper.
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A person's legal standing in society includes their rights and ______.
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Personalism emphasizes the unique dignity and rights of each ______.
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The commonly accepted term, “productivity,” measures economic output strictly in terms of one factor (________) alone.
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The Credit Insurance Corporation would provide credit insurance against ______ on Capital Homestead credit.
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Debt is often settled using different forms of ______.
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Profits are the financial gain resulting from the use of capital in a transaction after all ________ are paid.
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The marginal propensity to consume of a rich person is ______ than that of a poor person.
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Capital Homesteading is designed to broaden ownership of wealth and ______ technologies.
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The societal tool of money can be used ______ or unjustly.
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Property is not the object owned, but the sum total of the ______ which an individual may own in such an object.
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The Quantity Theory of Money states that the money supply and the price level in an economy are in direct ______ to one another.
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The relationship expressed mathematically in the Quantity Theory of Money equation is M x V = P x ______.
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Rediscounting creates 'new money' to be used by a citizen to purchase newly issued, full ______ payout shares.
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A requirement that for every dollar created for lending purposes, a bank must retain a corresponding dollar’s worth of ______ is known as 100% reserve policy.
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In a civilized society, property rights are only as effective as the laws which provide for their ______.
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The average price level is defined in the econometric model used by the ______.
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In binary economics, the factors of production include human ('________') and non-human ('capital').
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Binary economics argues for the equitable distribution of future wealth and ______ throughout society.
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The citizens land bank is designed as a for-profit, professionally managed ______.
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The common good establishes the conditions for the exercise of the natural ______ indispensable for the welfare of human initiatives.
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The term 'capital ______' refers to the criticism of the concentration of capital ownership.
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Personalism recognizes the social nature of human beings, who can create traditions, laws, and institutions to support each one's individual well-being and ______.
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Economic Personalism aims to diffuse economic power by democratizing access to ______ ownership for each person.
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Economic Personalism seeks the empowerment and full development of every person for the Common ______.
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The chief institutions for universalizing equal access to the means of acquiring productive ______ include a just monetary system.
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In economics, power is the ability to direct, influence, delegate, and organize labor, ______, money, credit, and resources.
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Power connotes direct control or delegated ______, as well as the ability to hold a person accountable.
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A just society is structured to diffuse ______ to every citizen.
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Price is the transaction value reached voluntarily by an informed buyer and an informed ______.
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Privilege means the absence of ______ for the person against whom it operates.
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Productiveness is measured by the market-determined value each factor contributes to the overall ______ process.
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American founders recognized the linkage between economic power and ______ power.
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Economic Personalism recognizes that human life, dignity, and liberty require the power and ______ means to sustain one’s own life.
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The most democratic economic system for determining just wages and prices is an open, anti-______ free market.
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Without ______, people cannot grow, move freely, or shape their own futures.
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The principle of distribution for charity is 'to each according to his ______.'
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Study Notes
Appropriation
- Funds allocated by legislators annually for government programs through the appropriations process.
- Differentiates from entitlements, which provide automatic funding without repeated approval.
- Use of tax credits and breaks can obscure true government spending, reducing accountability.
Banks and Financial Institutions
- Commercial Banks: Take deposits, make loans, and facilitate economic transactions; may create money.
- Central Banks: Serve as "banks for banks," providing currency and regulating money creation, typically not available for personal loans.
- Investment Banks: Buy/sell securities, acting as intermediaries between original issuers and buyers.
Binary Economics
- Developed by Louis O. Kelso, divides production factors into human (labor) and non-human (capital).
- Promotes sustainable economic growth through property ownership and equitable wealth distribution.
- Key concepts:
- Binary Productiveness: Capital assets contribute increasingly to output.
- Binary Property Right: Right to acquire wealth-generating capital.
- Binary Growth: Broad capital ownership leads to economic expansion.
Capital Ownership Models
- Capital Homesteading: Concept enabling widespread capital ownership, extending beyond land to advanced technologies.
- Capital Homestead Act: Aims to eliminate barriers to acquiring capital assets, promoting economic security for all citizens.
- Capital Credit Institutions: Facilitate capital ownership through loan aggregation and insurance mechanisms against defaults.
Charity and Social Justice
- Charity: Focused on aiding individuals based on need; distinct from justice, which relates to contribution.
- Social Charity: Aims to improve institutions and systems rather than just individuals, essential for social justice.
Historical Proposals
- Chicago Plan: Proposed full reserve requirement for banks to ensure stability against speculative loans.
- Citizens Land Bank: Structure allowing citizens to directly invest and manage local real estate, enhancing community ownership and investment.
Concepts of Collectivism and Common Good
- Collectivism: Denies individual ownership, recognizing only group ownership, contrasting with joint ownership.
- Common Good: Framework within which social institutions ensure justice, allowing for individual rights and societal conditions necessary for personal and collective fulfillment.
Corporate Structure
- Corporation: A legal entity limiting liability for shareholders while facilitating collective asset management and operational risks.### Corporate Accountability and Economic Concepts
- Corporations have increasingly failed to balance productive growth with adequate purchasing power, leading to managerial abuses.
- Enhancing corporate accountability, transparency, and dividend distributions to employees and a wider shareholder base can mitigate corporate shortcomings.
Cost and Credit Types
- Cost: The total of all direct and indirect expenses associated with producing goods and services.
- Capital Credit: Loans for self-liquidating projects expected to generate income, designed to help individuals become capital owners without prior savings.
- Consumer Credit: Borrowed funds spent on consumer goods, which do not generate income.
- Interest-Free Credit: Loans aimed at productive purposes without interest, focusing on preventing usury as defined in some religious traditions.
- Non-Recourse Credit: Loans where the borrower's personal assets are protected from seizure upon default, secured by project assets.
- Pure Credit: Interest-free loans tied to future productivity, involving enforceable promises and asset-backed financing without relying on existing savings.
Economic and Financial Mechanisms
- Self-Liquidating Credit: Loans anticipated to be repaid by profits generated from the financed capital assets.
- Two-Tiered Credit System: A monetary reform distinguishing between beneficial uses of credit (e.g., for broad ownership) and detrimental uses (e.g., nonproductive speculations).
- Demand: The desire for goods/services linked to the ability to make legal transactions.
- Aggregate Demand: Total demand in the economy calculated by consumer and investment expenditures plus net exports.
- Demand Deposits: Bank funds available for immediate withdrawal, such as checking accounts.
Ownership and Dividend Structures
- Customer Stock Ownership Plan (CSOP): Program enabling customers of utilities and cooperatives to accumulate shares and benefit from future profits while offsetting bills with dividends.
- Dividend: Profits distributed to shareholders, currently subject to board approval, potentially limiting owners' property rights.
- Employee Stock Ownership Plan (ESOP): Mechanism allowing employees to acquire shares in their company using pre-tax profits without personal financial risk.
Economic Justice and Capital Ownership
- Distributism: Economic model advocating for widely held ownership of productive assets to protect individual rights and break wealth concentration.
- Economic Justice: Emphasizes fairness in the distribution of wealth and opportunities.
- Capital Homesteading: Concept aimed at facilitating capital ownership through accessible credit channels, encouraging broad distribution of wealth in society.
Inflation and Economic Dynamics
- Inflation: A general increase in price levels, with "Demand/Pull" inflation caused by excess money chasing limited goods, and "Cost/Push" inflation driven by rising production costs.
- Deflation: A reduction in the amount of money or credit, leading to a decrease in prices, generally caused by currency constraints or economic slowdowns.
- Discount Rate: The rate at which central banks lend money to commercial banks, influencing overall interest rates in the economy.
Currency and Insurance in Economics
- Currency: Standardized tokens of value serving as money within an economy.
- Insurance, Capital Credit: Protection for lenders against borrower defaults, ensuring a safety net in financing arrangements.
Additional Concepts
- Ephemeralization: Process of doing more with less through technological improvement and resource efficiency.
- Forced Savings: Economically induced savings through governmental measures, designed to enhance capital accumulation.
- Imputed Rent: The estimated rental value of a homeowner's property treated as potential income.
These notes capture key concepts and terms related to corporate governance, economic principles, credit types, and ownership structures, facilitating better understanding and revision of the material.### Capital Credit Insurance and Borrowers
- Capital credit insurance substitutes for collateral, aiding borrowers without savings or income.
- Under the Capital Homesteading proposal, this insurance protects lenders against debt servicing risks tied to new corporate growth shares.
Understanding Interest
- Interest, or “ownership interest,” is derived from profits of a financed project.
- Commonly viewed as a charge for money use, technically, it should be considered a "service charge" when using "pure credit" rather than savings.
Types of Issuance: Primary and Secondary Securities
- Primary Issuance: Newly issued equity shares or bonds sold directly by private companies or governments as "primary government securities."
- Secondary Issuance: Existing shares or bonds resold from one party to another, often traded on stock exchanges, with values determined by market speculation.
Just Third Way Economic Paradigm
- A socio-economic alternative empowering individuals through democratized money and credit access to capital ownership.
- Contrasts capitalism, where capital ownership is concentrated, and socialism/communism, where the state controls production.
Principles of Justice
- Justice is a universal moral framework guiding right and wrong across cultures.
- Central tenet: "suum cuique," meaning "to each his due," reflecting the dignity of each person.
Types of Justice
- Commutative Justice: Focuses on equivalent value exchanges in transactions; exact debts must be repaid.
- Distributive Justice: Concerned with the fair distribution based on relative contributions, linking income to productive efforts.
- Economic Justice: Aims to empower individuals economically, providing a foundation for personal potential.
Economic Justice Triad
- Participative Justice: Guarantees everyone access to contribute economic value through labor and capital.
- Distributive Justice: Ensures fair distribution of income based on participation.
- Social Justice: Motivates individuals to correct economic inequalities and uphold participative and distributive justice.
Leadership and Management Philosophies
- Justice-Based Leadership (JBL): Aligns personal and organizational values with principles of justice, emphasizing trust and empowerment.
- Justice-Based Management (JBM): Implements JBL in organizations, prioritizing sustainable ownership cultures and maximizing customer value.
Definitions of Money Supply (M1, M2, M3)
- M1: Currency in circulation, traveler’s checks, and demand deposits at banks.
- M2: M1 plus savings deposits, small time deposits, and retail money market fund balances.
- M3: M2 plus institutional money market funds, large time deposits, and repurchase agreements (discontinued in 2006).
Additional Economic Concepts
- Market Glut: Situations where production exceeds demand, resulting in unsold goods.
- Primary Market: Direct purchasing from original issuers, while the Secondary Market involves buying from resellers.
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This quiz tests your understanding of key concepts in public finance, including differentiating between appropriations and entitlements, the role of central banks, and government accountability. Explore the mechanisms through which governments manage and spend their financial resources.