Download Unit 10--US and the World

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What part of the Constitution allows the
Supreme Court to declare a state law
unconstitutional?
Which principle says people have the
right to rule themselves?
Explain the case Leandro v. NC (1997).
Explain the case Swann v. CharlotteMecklenburg Board of Ed (1971).
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Proposed by President and passed by
Congress each year

Appropriations bill: bill that sets aside $
to be spent

Surplus—extra $; Deficit—not enough $

Forms of taxation:
› Progressive tax—the more you make, the
more you pay
› Regressive tax—the proportion you pay
decreases as your pay increases
Federal income tax--progressive
 Social Security tax—regressive

› $ goes specifically to Social Security program

Luxury/Excise tax—regressive
› Tax on things we don’t need

Tariff—regressive
› Tax on imported goods

Bond
› Loans taken out by the
government

Largest areas of federal spending:
› Social Security ~22%
› National Defense ~18%
› Income security (“welfare”) ~14%
› Medicare ~14%
› Interest on National Debt ~8%
What happens to demand for vehicles
that get poor gas mileage when gas
prices increase?
 What can the Federal Reserve do to end
a recession?
 Congress has just passed a law increasing
the tax on tobacco products to $1.01 per
item. Which type of law does this
scenario describe?
 What effect does inflation have on
consumers?

Solves problem of scarcity
 Creates jobs
 To reflect comparative advantage

› The ability of a country to produce a good
at a lower cost than another country can

Imports: a good purchased from one
country by another

Exports: a good produced in one
country and sold to another

Free Trade: trading between countries
without restrictions
Tariffs—used to protect domestic
industries
 Quotas—limits on the amount of foreign
goods imported into a country


North American Free Trade Agreement
(NAFTA)
› Made in 1994 between Canada, Mexico,
and US
› Will trade without any restrictions

European Union
› Combines 15 European countries into one
large economy

Balance of trade: difference between
value in imports and exports
› Trade surplus: value of exports exceed
imports
› Trade deficit: value of imports exceed
exports

Exchange rate
Put these events in order: National
Convention, Primary Election, Votes cast
in the Electoral College, General
Election.
 Explain the case Hazelwood v.
Kulhmeier.
 What are the economic results of high
unemployment?
 What happens when the real GDP goes
up?

Definition: Supply and demand
(producers and consumers) control the
market
 Government has little involvement in
economy
 Other names: Free Enterprise system,
Capitalism
 Examples: US

Definition: The government controls the
economy
 Everyone has equal share of the
government’s profits
 Other names: Communism, socialism
 Examples: North Korea, China

Definition: both the government and
supply/demand control the markets
 The government controls some industries,
while supply and demand control others
 Examples: Canada, Britain, France


Definition: The economy is controlled by
traditions, customs, and bartering
› Bartering: a system where individuals trade
their goods/services for other goods/services

Examples: the most poor, rural countries
in the world
Get prepared for your
vocabulary quiz!!!

Draw illustrations for and explain the 4
economic systems.

Keep order

Provide security

Provide services

Guide the community
Key meaning: rule by the people
 2 Types:

› Direct—people rule themselves directly
› Representative—people elect
representatives to rule them

Examples: US, Great Britain, Japan

Key Meaning: a government in which
one leader or small group hold absolute
power
› Dictators
› Totalitarian governments

Examples: Nazi Germany, North Korea

Anarchy: a situation in which there are
no laws and no law enforcement
Notebook Check #10
 Ballot
Box #10 Study Guide
 BB #10 Vocabulary
 International Trade Notes
 May 8 Class Starter