1. 5. The act of a government lowering taxes and lifting restrictions on businesses as a way of jump-starting the economy. Popular during the 1980s.
  2. 9. (Three words): Term for a state that looks after it’s citizens from birth to death. Associated with Social Democracy.
  3. 11. (Three words): The two factors which explain how goods and services are priced.
  4. 16. Economist who explained the economic cycle with inflation and unemployment during booms and busts respectively. Highly influential to FDR during the Great Depression.
  5. 17. (Two words): Type of economic theory built around deficit spending during times of crisis. High taxation and low spending in prosperous times, and low taxation and high spending during recessions.
  6. 20. (Two words): The way interest rates are manipulated by governments during times of prosperity or crisis.
  7. 21. (Two words): Term for a capitalist economy that employs social safety nets and government handouts as a way of making the markets more fair.
  8. 23. British PM who instituted laissez-faire policies and cut taxes on the wealthy in the 1980s.
  9. 24. (Two words): Taxation policy where taxes are raised on amounts of money made above a certain threshold. Used primarily in Social Democratic countries.
  10. 25. (Two words): Economic and political theory used by individuals like Robert Owen. Believed in complete removal of all capital and private property, and that people would work and advance for the good of society. Works in theory, less so in practice.
  1. 1. (Two words): This motivating factor of capitalism was first developed by Adam Smith. This selfish motivation will promote a better society as others will work harder. For example, when the common person notices that the Rich spend money on luxurious yachts, cars, and homes it motivates the common person to work harder to achieve a better lifestyle.
  2. 2. (Three words): The cycle that capitalist economies often go through. A period of prosperity followed by a recession before repeating again.
  3. 3. The amount of money that a government has lost at the end of a year due to being unable to pay back loans.
  4. 4. (Two words): Economic and political system using a mixed economy and high, progressive taxes. Common in Nordic countries.
  5. 6. Foundational communist theorist, credited with inventing the movement with his book, titled “The Communist Manifesto”.
  6. 7. (Two words): Economic crash brought about in 1929 by stock market panic. Only ended by the united effort of World War II.
  7. 8. Economist who believed that government handouts created “easy money”, and disincentivized people from working and caused them to spend wastefully, rather than invest productively.
  8. 10. (Two words): Economic crash brought about in 2008 by investors and bankers bundling loans and selling them to subprime borrowers.
  9. 12. Lack of capital. Systemic problem which communism sought to eliminate.
  10. 13. American President who played a role in lifting America out of the Great Depression by passing progressive policies.
  11. 14. Government handout, using taxpayer money to prop up failing businesses. Especially large, “too big to fail” ones.
  12. 15. (Two words): Type of economic theory built around little government intervention. Belief that wealth in the hands of the rich will “trickle-down” to and benefit the working classes. Synonymous with “Laissez-faire”.
  13. 18. (Two words): The way governments spend their money and raise/lower taxes during crisis.
  14. 19. American President who instituted laissez-faire policies and cut taxes on the wealthy in the 1980s.
  15. 22. (Two words): Nickname for government programs created by Franklin Roosevelt during the Great Depression.