Ch. 17-20 Vocab. Flashcards
antitrust policy
a policy designed to ensure competition and prevent monopoly (the control of a market by 1 company)
capitalism
an economic system based on the profit-motive and the private ownership of capital
collective bargaining
process through which organizations of workers try to improve working conditions, wages, and benefits for members by negotiating contracts with employers
consumer price index (CPI)
the key measure of inflation that relates to the rise in prices over time
Federal Reserve system
the country’s central banking system, which is responsible for the nation’s monetary policy by regulating the supply of money and interest rates
fiscal policy
use of the federal budget of taxes, spending, and borrowing to influence the economy
Food and Drug Administration (FDA)
a federal agency in the Dept. of Health and Human Services established to regulate the release of new foods and health-related products
inflation
a rise in the general level of prices of consumer goods
Keynesian economics
the theory emphasizing that govt. spending and deficits can help the economy weather its normal ups and downs
labor union
an organization of workers that tries to improve working conditions, wages, and benefits for its members
laissez-faire
a policy that the govt. should interfere as little as possible in the nation’s economy
minimum wage
a minimum price that an employer can pay a worker for an hour of labor
mixed economy
an economy in which private enterprise exists in combination with a considerable amount of govt. regulation and promotion
monetarism
an economic theory holding that variations in unemployment and the rate of inflation are usually caused by changes in the supply of money
monetary policy
govt. manipulation of the supply of money in private hands
multinational corporation
a business that operates in many countries
National Labor Relations Act
Wagner Act; 1935 law that guarantees workers the right of collective bargaining, sets down rules to protect unions and organizers, and created the National Labor Relations Board to regulate labor-management relations
protectionism
economic policy of shielding an economy from imports
Securities and Exchange Commission (SEC)
govt. agency having primary responsibility for enforcing the federal securities laws and regulating the securities industry
supply side economics
economic theory that lower taxes will boost the economy as business and individuals invest their money, thereby creating higher tax revenue
unemployment rate
the % of the labor force that is unemployed (actively seeking jobs, but unable to find work)
World Trade Organization (WTO)
internatl. organization that regulates internatl. trade
earned income tax credit
a “negative income tax” that provides income to very poor individuals in lieu of charging them federal income taxes
entitlement programs
a govt. benefit to which certain qualified individuals are entitled by law, regardless of need
feminization of poverty
the increasing concentration of poverty among women, esp. unmarried women and their children
income
amount of funds collected between any 2 points in time
income distribution
the “shares” of the natl. income earned by various groups
means-tested program
a govt. program available only to individuals below a poverty line
poverty line
a method used to count the # of poor people; considers what a family must spend for an austere (basic) standard of living
progressive tax
a tax by which the govt. takes a greater share of the income of the rich than the poor
proportional tax (flat tax?)
a tax by which the govt. takes the same share of income from everyone, rich and poor alike
regressive tax
a tax by which the burden falls relatively on low-income groups than upon wealthy taxpayers; opposite of progressive tax
Social Security Trust Fund
a “bank deposit” into which Social Security contributions are “deposited” and used to pay to eligible recipients
social welfare policy
a policy that provides benefits to individuals, either through entitlement or means testing
transfer payments
a benefit given by the govt. directly to individuals; may be either cash transfers (i.e. Social Security payments) or in-kind transfers (i.e. food stamps)
wealth
the value of assets owned
Clean Air Act
1970; law that charged the Dept. of Transportation with the responsibility to reduce automobile emissions
Endangered Species Act
1973; law that required the federal govt. to protect actively each of the 100s of species listed as endangered
Environmental Protection Agency (EPA)
an agency of the federal govt. created in 1970 and charged with administering all of the federal govt.’s environmental legislation
Health Maintenance Organization (HMO)
organization contracted by individuals or insurance companies to provide health care for a yearly fee
Medicaid
a public assistance program designed to provide health care for poor Americans
Medicare
a program added to the Social Security system in 1965 that provides hospitalization insurance for the elderly and permits older Americans to purchase inexpensive coverage for doctors fees and other medical expenses
National Health Insurance
a compulsory insurance program for all Americans that would have the govt. finance citizens’ medical care
Occupational Safety & Health Administration (OSHA)
agency est. by Congress to oversee working conditions by settling and enforcing labor standards
Superfund
a fund created by Congress in 1980 to clean up hazardous waste sites that is funded by taxes on chemical products
Water Pollution Control Act
1972; a law intended to clean up the nation’s rivers and lakes; requires municipal, industrial, and other polluters to use pollution control technology and secure permits from the EPA for discharging waste products into waters
Arms Race
a tense relationship beginning in the 1950s between the Soviet Union and the US whereby one side’s weaponry goaded the other to procure more weaponry, and so on
balance of trade
the ration of what is paid for imports to what is earned from exports
Central Intelligence Agency (CIA)
an agency created after WWII to coordinate American intelligence activities abroad
Cold War
war by other than military means, usually emphasizing ideological conflict
containment doctrine
a foreign policy strategy that called for the US to isolate the Soviet Union, “contain” its advances, and resist its encroachments by peaceful means if possible, but by force if necessary
detente
a slow transformation from conflict thinking to cooperative thinking if foreign policy strategy and policymaking
European Union (EU)
an alliance of the major Western European nations that coordinates monetary, trade, immigration, and labor policies, making the members one economic unit
foreign policy
a policy that involves choice-taking, like domestic policy, but additionally involves choices about relations with the rest of the world
interdependency
mutual dependency, in which the actions of nations reverberate and affect one another’s economic lifelines
International Monetary Fund (IMF)
a nongovernmental organization est. in 1944 to help stabilize the internatl. monetary system, improve economic growth, and aid developing nations
isolationism
a foreign policy course followed throughout most of our nation’s history, whereby the US tried to stay out of other nations’ conflicts, esp. European wars
Joint Chiefs of Staff
the commanding officers of the armed services who advise the president on military policy
North American Free Trade Agreement (NAFTA)
an agreement among the US, Canada, and Mexico to create a trilateral trade bloc, eliminating barriers to free trade among the 3 countries
North Atlantic Treaty Organization (NATO)
created in 1945, an organization whose members include the US, Canada, most W. European nations, and Turkey, all of whom agreed to combine military forces and treat a war against one as a war against all
sanction
a trade penalty that one nation places on another to encourage the penalized nation to change its actions or policies
Strategic Defense Initiative
a defense plan against Soviet nuclear weapons unveiled by President Reagan in 1983
tariff
a special tax added to imported good to raise the price, thereby protecting American businesses and workers from foreign competition
United Nations (General Assembly & Security Council)
created in 1945, an organization whose members agree to renounce war and to respect certain human and economic freedoms
