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chapter 23
content vocalbulary
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 high ways and national defence |
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 eist |
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 | situation in which a company pulls a product off the market or agrees to change it to make it sale |
real GDP | GDP after adjustments for inflation |
business cycle | alternating periods of growth and decline that economy goes through |
civilian labor force | all civilians 16 years old or older who are working or 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 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 for low income women children and infants |
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 or even cash credits to qualified workers |