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chapter 23
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 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 special election in which citizens can vote to remove a public official from office |
real GDP | adjustment 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 governments 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 service |
food stamps | government coupons that can be use to purchase goods |
women, infant, and children | a program that provides help for nutrient and health care to low income women, infants, and children up to age five |
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 income than lower incomes |
earned income tax credit | a program that gives tax credits and even cash payments to qualified workers |