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MATERIALS BALANCE: A hard and fast rule that the total amount of stuff removed from the natural environment will be eventually returned, probably as pollution. This is based on a fundamental law of physics that says material can be neither created nor destroyed, but only transformed. During any given period (such as a year) the quantity of materials returned to the environment is the difference between the quantity extracted and the quantity used by the economy.
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Lesson 1: Economic Basics | Unit 5: Policies
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Page: 14 of 18
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Because markets are imperfect, government is prompted to intervene with economic policies.- Economic policies are government actions designed to affect economic activity and pursue one or more economic goals.
Policies can take the form of:- Laws passed by legislatures.
- Administrative actions taken by elected executives.
- Rules set forth by government agencies.
- Decisions made through the courts.
The government has four types of policies.- Fiscal policy: Based on government's power to collect taxes from the public and spend those funds as it chooses. Used for income redistribution and macroeconomic performance.
- Monetary policy: Based on government's centralized control of the money supply. Used for macroeconomic performance.
- Regulatory policy: Based on government's ability to enact laws, rules and restrictions. Used for efficiency and equity
- Judicial policy: Based on government's ability to enforce laws through the courts. Used for efficiency and equity
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TAX MULTIPLIER A measure of the change in aggregate production caused by changes in government taxes. The tax multiplier is the negative marginal propensity to consume times one minus the slope of the aggregate expenditures line. The simple tax multiplier includes ONLY induced consumption. More complex tax multipliers include other induced components. Two related multipliers are the expenditures multiplier, which measures the change in aggregate production caused by changes in an autonomous aggregate expenditure, and the balanced-budget multiplier which measures the change in aggregate production from equal changes in both taxes and government purchases.
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PURPLE SMARPHIN
[What's This?]
Today, you are likely to spend a great deal of time flipping through mail order catalogs wanting to buy either a birthday gift for your father that doesn't look like every other birthday gift for your father or a green fountain pen. Be on the lookout for vindictive digital clocks with revenge on their minds.
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The first paper currency used in North America was pasteboard playing cards "temporarily" authorized as money by the colonial governor of French Canada, awaiting "real money" from France.
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"The greatest things ever done on Earth have been done little by little. " -- William Jennings Bryan
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ADV FRT
Advance Freight
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