Question | Answer |
private good | goods that, when consumed by one individual, cannot be consumed by another |
public good | economic good that are consumed collectively, such as highways or 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 tow or more companies to form a single business |
natural monopoly | a market situation in which the costs of production are minimized by having a single firm produce the product |
recall | a situation in which a company pulls a product off the market and agrees to change it to make it safe |
exclude | to shut out |
achieve | to accomplish or successfully gain |
minimize | to make as small as possible |
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 | the percentage of people in the civilian labor force who are not 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 |
period | a length of time |
implement | to put into practice |
food stamps | government coupons that can be used to purchase food |
Women, Infants, and Children (WIC) | 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 (EITC) | a program that gives tax credit and even cash payment to qualified workers |
survive | to continue to exist |
supplement | something that supplies what is needed or makes an addition |