ECON

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Farm Subsidies: Subsidy-is a government payment to an individual, business, or other group to encourage or protect a certain economic activity. o Lower the cost of production, which encourages current producers to stay in the market and new producers to enter. o When subsidies are repealed -> costs go up, producers, leave the market, and the supply curve shifts to the left. Farmers that produce milk, cotton, corn, wheat, ect.. use subsidies to help support their income. o Helps keep farmers in business and attracts new farmers which shifts our supply curve to the right. Unemployment Insurance The Department of Labors Unemployment Insurance (UI) programs provide unemployment benefits to eligible workers who become unemployed through no fault of their own, and meet certain other eligibility requirements. International Sanctions on Agriculture: Sanctions are a tool used by countries or international organizations to persuade a particular government or group of governments to change their policy by restricting trade, investment or other commercial activities. o The goal is relatively modest. This also lessens the importance of multilateral cooperation, which often is difficult to obtain. o The target country is much smaller than the country imposing sanctions, economically weak, and politically unstable. o The sanctions are imposed quickly and decisively to maximize impact. Trade sanctions deprive the US of the gains from Trade and frequently penalize exporting firms that are among the most sophisticated and productive in the US economy. They have also led to increasing tensions between the US and its allies and trading partners around the world.

Develops and enforces environmental standards for air, water, and toxic waste. Public Works Project Are publically used facilities such as schools and highways that are built and paid with tax dollars.

1/4/2013 10:48:00 AM Minimum Wage Laws: Sets the lowest legal hourly wage rate that may be paid to certain types of workers. Keeps supply and demand in the labor market from constantly shifting wage rates. Negative Effects: o Causes some employers to hire less low-skilled workers Delays the acquisition of job skills by low-paid workers who may not have much formal education. Organized labor unions also restricts the influence of supply and demand on wages. Anti-trust Laws: Sherman Anti-Trust Act (1890) o Sought to protect trade and commerce against unlawful restraint and monopoly. Example: J.D. Rockefeller, Standard Oil Company Clayton Anti-Trust Act (1914) o Prohibited or limited a number of very specific business practices that lessened competition Substantially. Social Security: A federal program that provides monthly payments to people who are retired or unable to work. Intended to provide supplemental income, or additional income sometimes referred to as a safety net. Is often enough for a retired person to live comfortably on. Medicare: A federal health care program available to all senior citizens, regardless of income. The Medicare Tax is 1.45% of income with no limit on the amount taxed. Everyone who receives a paycheck pays exactly the same rate.

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