Chapter 16- Economic And Social Welfare Policymaling

Question 1

Unemployment rate

Answer 1

Measured by the Bureau of Labor Statistics l, the people who are looking for employment but aren’t finding any

Question 2

Underemployment rate

Answer 2

Measured by the Bureau of Labor Statistics, the people who are not working but are looking for a job, the people who want to work but have given up their search, and the people who work part time because they can’t find a full time job

Question 3

Inflation

Answer 3

The unfortunate rise in goods and services

Question 4

Consumer price index

Answer 4

Key measure of inflation, the change in the cost of buying a fixed basket of goods and services

Question 5

Laissez-faire

Answer 5

The idea that the gov’t should not get involved with our economy

Question 6

Monetary policy

Answer 6

The gov’t can manipulate the economy this way, by having the money supply in private hands

Question 7

Monetarism

Answer 7

The idea that holding the supply of money will improve our economy

Question 8

Federal Reserve System

Answer 8

(Created in 1913) used to regulate the lending practices of banks and the money supply

Question 9

Fiscal policy

Answer 9

It is determined by Congress and the president, it is the use of the federal budget through taxes, spending, and borrowing

Question 10

Keynesian economic theory

Answer 10

Theory that states the gov’t should spend to stimulate the economy when it is down

Question 11

Supply- side economics

Answer 11

A theory that states that in order to stimulate the economy we must raise the supply of goods, by cutting taxes.

Question 12

Entitlement programs

Answer 12

Government programs that provide for people even though they might not need it

Question 13

Means- tested programs

Answer 13

Government programs that provide for people that qualify/need it

Question 14

Income distribution

Answer 14

The way the nat’l income divides its shares from poor to rich

Question 15

Relative deprivation

Answer 15

When a person compares their self to others and claims they aren’t doing well economically

Question 16

Income

Answer 16

The amount of money collected in a certain period of time

Question 17

Poverty line

Answer 17

An income threshold in which people below it are considered poor, based on how much they may make

Question 18

Feminization of poverty

Answer 18

The increasing amount of poverty for women, especially those who are not married and have children

Question 19

Progressive tax

Answer 19

A tax that favors the poor more. Taking more money, in taxes, from the rich than they do from the poor

Question 20

Proportional tax

Answer 20

A tax that does not favor anyone. They don’t take more or less from the rich or poor.

Question 21

Regressive tax

Answer 21

A tax that taxes the poor people more

Question 22

Earned Income Tax Credit

Answer 22

(EITC) a refundable federal income tax credit for low to moderate working people, even if they do not make enough to file a tax return

Question 23

Transfer payments

Answer 23

Direct benefits given from the gov’t given to people that really need it, such as Social Security payments, food stamps, or even low-interest college loans

Question 24

Social Security Act of 1935

Answer 24

Created Social Security program and national assistance program for poor families, a.k.a Aid families with Dependent Children

Question 25

Personal Responsibility and Work Opportunity Reconciliation Act

Answer 25

(1996) a law that put in the temporary help for the Needy Families program (LBJ)

Question 26

Temporary Assistance for Needy Families

Answer 26

Replaced Aid to Families with Dependent Children for the TANF. It requires people on welfare to find work within two years and has a max. of five years

Question 27

Social Security Trust Fund

Answer 27

The money taken out of our paychecks to be saved and pay for our old people, including yourself in the future

Question 28

Social Welfare policies

Answer 28

These provide benefits for the ones who qualify for them