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Comparing and Contrasting What is the difference between transfer payments and government spending on goods and services?
List four legislative attempts to deal with the problem of federal budget deficits. Explain why entitlements are so named.
List the three major categories of spending by local governments. Discuss the relationship of the federal deficit to the federal debt.
Explain why politicians insert pork items into other legislation. Identify the purpose of a balanced budget amendment.
Explain the two kinds of government spending. Describe the way the government competes with the private sector.
Deficit Spending If you were given the task of reducing entitlement programs to limit deficit spending, which ones would you select to reduce or alter?
Which do you think is a better way to reduce budget deficits: pay-as-you-go provisions or line-item vetoes? Explain your answer in a brief paragraph.
The BIG Idea Why is it so difficult to rein in the national debt? Determining Cause and Effect How can the federal debt affect worker incentives?
What is the difference between the national debt and the federal deficit? What were the results of government efforts to reduce deficits?
Explain the significance of deficit spending, national debt, balanced budget, trust fund, per capita, crowding-out effect and pay-as-you-go provision.
Write an essay describing how the budget is created and who has spending authority.
How will the combination of these two factors affect future transfer payments such as Social Security?
Determining Cause and Effect If the price of a share of stock goes up, what does this suggest about the quantity demanded and quantity supplied for that stock?
Describing What are the stock performance measures? The BIG Idea What options are available to individuals who wish to invest in stocks?
Explain the significance of equities, stockbroker, Efficient Market Hypothesis, portfolio diversification, mutual fund, net asset value and 401(k) plan.
Comparing and Contrasting What do corporate bonds, municipal bonds, and government savings bonds have in common? How do they differ?
The BIG Idea Why would an investor want to choose a certificate of deposit over a corporate bond? Why would someone be willing to invest in junk bonds?
Explaining What is the relationship between a bond rating and the price of the bond? Stating What are markets for financial assets?
Explain the significance of bond, coupon rate, maturity, par value, current yield, junk bond, municipal bond, tax-exempt, savings bond and beneficiary.
Why is an I.O.U. that you write and give to a friend in payment of a debt considered an example of a financial asset?
Comparing and Contrasting How do life insurance companies and pension funds differ in the way they serve their clients?
Use a graphic organizer like the one below to describe nonbank financial intermediaries. What is the relationship between the financial system and the economy?
Describing How does saving compare to savings? Explaining Why is consistency important when saving?
Explain significance of saving, savings, certificate of deposit, financial asset, financial system and financial intermediary, nonbank financial institution.
Persuasive Writing Which of the two types of government spending has the most impact on the economy? Explain your answer in a two-page paper.