Question | Answer |
Private good | goods that when consumed by one individual , cannot be consumed by another. |
public good | economic goods that are consumed collectively, such as highways and national defense. |
externality | the unintended side effect of an action that affects someone not involved in the action |
monopoly | when the market creates a sole provider for a good or service. |
antitrust law | legislation to prevent new monopolies from forming and police those that already exist. |
merger | a combination of two or more companies |
natural monopoly | a market situation in which the costs of productions are minimized by having a single firm produce the product. |
recall | a special election in which citizens can vote to remove a public official from office; situation in which a company pulls product off market or agrees to change it to make it safe. |
real GDP | GDP after adjustments for inflation |
business cycle | alternating periods of growth and decline that the economy goes through. |
civilian labor force | all civilians 16 years old or older who are either working or are looking for work. |
unemployment rate | percentage of people in the civilian labor force who aren't working but are looking for jobs. |
fiscal policy | the federal government's use of spending and taxation policies to affect overall business activity. |
inflation | sustained increase in the general level of prices. |
consumer price index | measure of change in price over time of specific group of goods and services. |
food stamps | government coupons that can be used to purchase food. |
Women, Infants, and Children | a program that provides help for nutrition and health care to low-income women, infants, and children up to age 5. |
workfare | programs that require welfare recipients to exchange some of their labor in return for benefits. |
progressive income tax | a tax that takes a larger percentage of higher incomes than lower incomes. |
Earned Income Tax Credit | a program that gives tax credits and even cash payments to qualified workers. |