PFLE Unit 5 test flashcards

Front

What are the types of taxes at different levels?

Back

Progressive and regressive taxes at the local, state, and national levels.

Front

Why are federal income, Social Security, Medicaid, and Medicare taxes important?

Back

They are important for funding government programs and services, with considerations for earnings limitations.

Front

What are the macroeconomic goals of the United States?

Back

Full employment, price stability, and economic growth.

Front

How do fiscal policies affect the economy?

Back

They impact interest rates, inflation, and unemployment through government decisions.

Front

What is the role of the Federal Reserve System in the economy?

Back

It enacts monetary policies that affect interest rates, inflation, and unemployment.

Front

How do you differentiate among gross, net, and taxable income?

Back

Gross income is total earnings, net income is earnings after deductions, and taxable income is the portion subject to taxes.

Front

What is the purpose of monetary policy tools like open market operations?

Back

They are used to control the money supply and influence interest rates to achieve economic stability.

Front

How does the government use fiscal policy to influence economic growth?

Back

By adjusting spending levels and tax rates to monitor and influence a nation's economy.

Front

What is the significance of the Consumer Price Index (CPI)?

Back

It measures changes in the price level of a market basket of consumer goods and services purchased by households.

Front

What is the impact of inflation on purchasing power?

Back

Inflation decreases purchasing power as it increases the prices of goods and services, meaning consumers can buy less with the same amount of money.