click below
click below
Normal Size Small Size show me how
Ch. 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 | 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 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 Priced Index (CPI) | 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 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 longer percentage of higher incomes than lower incomes. |
Earned Income Tax Credit (EITC) | A program that gives tax credit and even cash payments to qualified workers. |