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Ch.23
Term | Definition |
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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 to 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 |
Civilian labor force | All civilians 16 years years old or older who are either working or looking for a work |
Unemployment rate | The percentage of people in the civilian labor force who are not working but are looking for a job |
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 |
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 receipts to exchange some of their labor in return of benefits |
Progressive income tax | A tax that takes a larger percentage of higher incomes than lower incomes |
Earned Income tax | A program that gives tax credits and even cash payments to qualified workers |