SG4historyF11

SG4historyF11 - compete with each other 7 What is an...

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US Economic History Study Guide Four: Government in a Capitalist Economy September 19, 2011 1. What are the five roles of government in a market based economy? 2. According to the Bureau of Economic Analysis, what percentage of GDP is the federal government? What percentage of GDP was the federal government 60 years ago? 3. What is a a. a public good (define and give examples)? b. free rider? 4. What government policy is employed to eliminate the free-rider problem? 5. How does U.S. military spending compare to what we see in the world? How does the U.S. military compare to the militaries of every other nation (around the world and in the history of the human race)? 6. Why do we want firms to compete? What will happen if firms do not effectively
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Unformatted text preview: compete with each other? 7. What is an externality? Give an example of a negative and positive externality. 8. According to lecture, why – and when -- was Social Security and Medicare created? 9. What is the “Full Employment Act” and when was it passed? 10. What are the primary expenditures of the Federal Government? 11. How do marginal and effective tax rates today compare to what we saw in the past few decades? 12. How do taxes in the United States compare to other industrialized nations? 13. What taxes primarily fund the Federal Government? When were these taxes established? 14. What taxes primarily fund state and local governments? 15. What are the expenditures of state and local governments?...
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This note was uploaded on 09/21/2011 for the course ECON 33974 taught by Professor Barbaraross during the Spring '09 term at Hawaii.

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