Chapter 18: Section 1 Flashcards
Antitrust Policy
A policy designed to ensure competition and prevent monopoly, which is the control of a market by one company.
Budget
A document that states tax collections, spending levels, and the allocation of spending among purposes.
Budget Resolution
A congressional decision that states the maximum amount of money the government should spend.
Capitalism
An economic system based on private ownership of capital and open competition in a free market, in which individuals and companies own the means of production and operate for profit.
Collective Bargaining
The process by which unions and firms agree on the terms of employment, such as pay and acceptable working conditions.
Congressional Budget Office
Advises Congress on the probable economic consequences of different spending programs and provides information on the costs of the proposed policies.
Deficit
The result of when the government in one year spends more money than it takes in from taxes.
Deregulation
The process of removing constraints and restrictions on business, industry, and professional activities for which government rules had been established, especially government-imposed economic regulation.
Discretionary Spending
Spending that is not required to pay for contracts, interest on the national debt, or entitlement programs such as Social Security.
Earned Income Tax Credit
A provision of the 1975 tax law that entitles working families with children to receive money if their incomes fall below a certain level.
Economic Planning
The belief that government plans, such as wage and price controls or the direction of investment, can improve the economy.
Entitlements
A claim for government funds that cannot be changed without violating the rights of the claimant.
