How can inequality or discrimination hurt an economy examples?

How can inequality or discrimination hurt an economy examples?

The Economic Opportunity Act was created to address health. discrimination….

• Your car insurance could cost more.
• Your phone deposit could cost more.
• Your apartment deposit could cost more.
• Your loan (virtually any type of loan) could cost more.
• Paying cash for food could cost more.
• Your utilities deposit could cost more.

How can inequality or discrimination hurt an economy quizlet?

How can inequality or discrimination hurt an economy’s ability to maximize its human captial? When there is discrimination then people are limited to that and there will be less human captial which therefore hurts the economy. How do the decisions you make as a consumer affect the economy?

What 3 important pieces of information can we learn by reading a production possibilities graph?

What three important pieces of information can we learn by reading a production possibilities graph? The efficiency of the economy, the growth or shrinkage of the economy and the opportunity cost of a decision to produce more of one good or service.

Why do governments increase spending?

Increasing or decreasing government spending is one of the instruments of the fiscal policy, which is performed by goverments and economic authorities in order to influence the macroeconomic conditions such as the aggregate demand, employment, inflation or economic growth figures.

How does spending help the economy?

Consumer spending drives a significantly large part of U.S. GDP. This makes it one of the biggest determinants of economic health. Data on what consumers buy, don’t buy, or wish to spend their money on can tell you a lot where the economy may be heading.

Does government spending increase investment?

Increased government spending is likely to cause a rise in aggregate demand (AD). This can lead to higher growth in the short-term. If spending is focused on welfare benefits or pensions, it may reduce inequality, but it could crowd out more productive private sector investment. …

How does government spending help the economy?

Government spending can be a useful economic policy tool for governments. Expansionary fiscal policy can be used by governments to stimulate the economy during a recession. For example, an increase in government spending directly increases demand for goods and services, which can help increase output and employment.

Why is government spending bad for the economy?

Government spending reduces savings in the economy, thus increasing interest rates. This can lead to less investment in areas such as home building and productive capacity, which includes the facilities and infrastructure used to contribute to the economy’s output.

What are the 3 main revenue sources?

Types of Revenues

• Revenue from goods sales or service fees: This is the core operating revenue account for most businesses, and it is usually given a specific name, such as sales revenue or service revenue.
• Interest revenue: This account records the interest earned on investments such as debt securities.

What are the 6 major sources of tax revenue?

Topics

• Sources of US Tax Revenue.
• Business Consumption Taxes.
• Business Property Taxes.
• Individual Income and Payroll Taxes.
• Property Taxes.
• Tax Data.

What are the two main ways governments can raise money?

In general, there are three primary ways that governments can raise money:

• Taxation–they legally require their citizens to hand it to them under the threat of coercion.
• Borrowing–they request an amount of money and issue bonds to those who give it to them, promising to repay the money with some amount of interest.

What are the ways governments can raise money?

But the government raises about 10% of its revenues from other sources, including “excise” taxes on products such as alcohol, tobacco and gasoline; customs duties and taxes on imports of foreign goods (“tariffs”); estate taxes; “user” fees for government services such as issuing a patent or approving a new drug; and …

How does a country raise money?

The government primarily generates revenue through the imposition of taxes – individual income taxes, Social Security/Medicare taxes, and corporate taxes.

Why would you want to restrict economic output?

As interest rates rise, people generally keep their wealth in assets that pay returns, restricting the money supply. Why would you want to restrict economic output? Enforcing the Antitrust laws could help lower cost-push inflation.

What are the 3 types of scarcity?

Scarcity falls into three distinctive categories: demand-induced, supply-induced, and structural.

What makes a strong economy?

What makes a good economy? A strong labor market, predominantly, though the public also values lower inflation, more economic growth, and a stronger dollar.

What happens when consumers think the economy is struggling?

Which of the following best explains what happens when consumers think the economy is struggling? 1. People spend more, businesses produce less, and unemployment rises. People spend less, businesses produce too much, and unemployment is low.