Ohio/Econ Test Readiness Assessment

VOCAB: Match the term to its definition.

• Spending more money than you make

• Deficit

• Loan to gov paid back with interest

• Entitlements

• Fee paid on loans (Interest)

• Discount Rate

• Social Security, Medicare, Medicaid

• Securities/Bonds

• Amount of Money banks keep on hand

• Reserve Requirement

VOCAB: Match the term to its definition.

• Money spent on gov programs

• Taxes

• More money you make the more you pay

• Progressive Tax

• tax on imports and exports

• Tariffs

• Income, sales and other fees paid to gov

• Government Spending

• Flat tax-affects poor people more

• Regressive Tax

VOCAB: Match the term to its definition.

• Entitlements (SS, Medicare/Medicaid)

• Inflation

• prices increase over time

• Recession

• Economy in decline for 6+months

• Mandatory Spending

• Control where money goes in gov

• Discretionary Spending

• All gov $ except entitlements

• Appropriate (gov definition)

VOCAB: Match the term to its definition.

• Controlling taxes and spending

• Balanced Budget

• Speeding up the economy

• Contractionary Policy: trying to

• Slow down the economy

• Expansionary policy

• The amount of money in the economy

• Monetary Policy: Controlling...

• Spending = revenue ($ coming in)

• Fiscal Policy

Econ Concept: To slow down the economy, the Fed SHOULD: ​ ​

• Raise "Discount" interest rates
• Raise the reserve requirements
• Lower "Discount" interest rates
• Lower reserve requirements

Econ Concept: To slow down the economy, the Fed SHOULD: ​ ​

• Raise Discount" interest rates
• Lower the reserve requirements
• Lower "Discount" interest rates
• Raise reserve requirements

Econ Concept: To slow down the economy, the Government SHOULD: ​ ​

• Raise Discount" interest rates
• Lower Government Spending
• Raise Taxes
• Raise reserve requirements
• Raise government spending

Econ Concept: To SPEED UP the economy, the Government SHOULD: ​ ​

• Raise Discount" interest rates
• Raise Government Spending
• Raise reserve requirements
• Lower government spending
• Lower Taxes

Econ Concept: Which of the following are considered ENTITLEMENTS?​ ​ ​ o

• Medicaid
• Military spending
• Education spending
• Medicare
• Roads and bridges

Econ Concept: Which of the following are considered Discretionary Spending?​ ​ ​ ​ o

• Military Spending
• Social Security
• Medicare
• Energy Costs
• Veteran Spending