Chapter 18 Roots of Economic Policy Flashcards

1
Q

Fluctuations between periods of economic growth and recession, or periods of boom and bust.

A

buisness cycles

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2
Q

A French term meaning “to allow to do, to leave alone.” It holds that active governmental involvement in the economy is wrong.

A

laissez-faire

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3
Q

Alternative to the laissez-faire state; the govenment took an active role in guiding and regulating the private economy.

A

interventionist state

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4
Q

Government regulation of buisness practices, industry rates, routes, or areas serviced by particular industries.

A

economic regulation

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5
Q

Government regulation of consumer protection, health and safety, and environmental protection.

A

social regulation

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6
Q

A reduction in market controls (such as price fixing, subsidies, or controls on who can eneter the feild) in favor of market-based competition.

A

deregulation

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7
Q

The deliberate use of the national government’s taxing and spending policies to maintain economic stability

A

fiscal policy

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8
Q

The total market value of all goods and services produced in an area during a year.

A

gross domestic product (GDP)

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9
Q

The economic condition that occurs when expenditures exceed revenues.

A

budget deficit

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10
Q

A rise in the general price levels of an economy

A

inflation

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11
Q

A form of government regulation in which the nation’s money supply and interest rates are controlled

A

monetary policy

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12
Q

In the Federal Reserve System, a seven-member board that makes most economic decisions regarding interest rates and the supply of money.

A

Board of Governors

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13
Q

Government requirements that a portion of member banks’ deposists be retained as backing for their loans.

A

reserve requirements

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14
Q

The rate of interest at which the Federal Reserve Board lends money to member banks.

A

discount rate

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15
Q

The buying and selling of government securities by the Federal Reserve Bank.

A

open market operations

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16
Q

A 1935 law that established old age insurance; assistance for the needy, aged, blind, and families with dependent children; an unemployment insurance

A

Social Security Act

17
Q

Government benefits that all citizens meeting eligibility criteria-such as age, income level, or unemployment-are legally “entitled” to receive

A

entitlement programs

18
Q

Programs that provide cahs assistance to qualified beneficiaries, regardless of income. Among these are Social Security and unemployment issues.

A

non-means-tested programs

19
Q

Programs that require that beneficiaries have incomes below specifies levels to be eligible for benefits. Among these are SSI, TANF, and SNAP

A

means-tested programs