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civics chapter 23

vocab

TermDefinition
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 auction that affects someone not involved in 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 to form a single business
natural monopoly a market situation in which the cost of production are minimized by having a single firm produce the product
recall situation in which a company pulls a product off the 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 though
civilian labor force all civilian 16 years old or older who either working or are looking for work
unemployment rate the percentage of people in the civilian labor force who 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 sevices
food stamps government coupons that can be used to purchase food
woman,infants,and children a program the 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 then lower incomes
earned income tax credit a program that gives tax credit and even cash payments to qualified workers
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