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chapter 23
chapter23
Term | Definition |
---|---|
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 form a single business |
natural monoply | a market situation in which the costs of production 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 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 through |
civilian labor force | all civilians 16 years old or older who are ether working or are looking for work |
unemployment rate | the percentage of people in the civilian labor force who are not working but looking for jobs |
fiscal policy | the federal government use of spending and taxation policies to affect overall business activity |
inflation | sustained increase of the general level of prices |
consumer price index | measure of change in price over time of specific group of goods and services |
food stamps | governments coupons that can be used to purchase food |
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 on return for benefits |
progressive income tax | a tax that takes a larger percentage of higher incomes than lower incomes |
eitc | a program that gives tax credits and even cash payment to qualified workers |