Chapter 17 Notes

Purpose: To guide you in your chapter notes.

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Directions: Short answer questions should be a minimum of 5 sentences. Definitions should be accompanied by one sentence explain why the definition is significant to government. Chapter 17 Economic Policymaking Government, Politics, and the Economy In what way is Walmart regulated in the United States? How does Walmarts participation in the world economy both help and hurt American workers? Why do you think unemployment and inflation are major indicators of the U.S. economy? (6-8 sentences) - Capitalism - Mixed economy - Multinational corporations - Securities and Exchange Commission (SEC) - Minimum wage - Labor union - Collective bargaining - Unemployment rate - Inflation - Consumer price index (CPI) Policies for Controlling the Economy How does the Federal Reserve System change interest rates for banks? Why do they do this? Explain Keynesian economic theory and supply side economics. Which do you think is the best approach the budget? (At least 8 sentences) - Laissez-faire - Monetary policy - Monetarism - Federal Reserve System - Fiscal policy - Keynesian economic policy - Supply-side economics Why Is It Hard To Control the Economy The text says that Government can do about as much to control the economy as the average parent can do to control the average teenager. Explain this statement. What makes it true? What about the U.S. government specifically makes it ill equipped to control the economhy? (6-8 sentences) Politics, Policy, and the International Economy What does the WTO do? In 1999, there were major protests of tens of thousands against the WTO. What do you think they were protesting? Does world trade help hurt the U.S.? (5-7 sentences) - Protectionism - World Trade Organization (WTO) Arenas of Economic Policymaking Give 3-4 examples of how bureaucracies regulate businesses. Why have unions (which are interest groups) had less of an effect on business practices? (6-8 sentences) go to the back
Homework that is not completed will result in an F in the class, detention, and you will have to come to office hours.

Antitrust policy Food and Drug Adminstration (FDA) National Labor Relations Act

Understanding Economic Policymaking The text says that Democratic control (voting) means that public policy follows at least in a general way the preference of voters Is this true? Do the bureaucracies and politicians represent the interest of the average person when it comes to the economy? Why or why not?(4-6 sentences)

Homework that is not completed will result in an F in the class, detention, and you will have to come to office hours.