Chapter 23 Vocab Flashcards
private goods
goods that, when consumed by one individual, cannot be consumed by another
-subject to the exclusion principle (a person is excluded from using that good or service unless he or she pays for it)
goods that, when consumed by one individual, cannot be consumed by another
-subject to the exclusion principle (a person is excluded from using that good or service unless he or she pays for it)
private goods
public goods
goods that can be consumed by one person without preventing the consumption of the good by another
-subject to the nonexclusion principle (no one is excluded from consuming the benefits of a public good whether or not he or she pays)
goods that can be consumed by one person without preventing the consumption of the good by another
-subject to the nonexclusion principle (no one is excluded from consuming the benefits of a public good whether or not he or she pays)
public goods
externality
the unintended side effect of an action that affects someone not involved in the action
the unintended side effect of an action that affects someone not involved in the action
externality
monopoly
a sole provider of a good or service
a sole provider of a good or service
monopoly
antitrust laws
laws to control monopoly power and to preserve and promote competition
laws to control monopoly power and to preserve and promote competition
antitrust laws
merger
a combination of two or more companies to form a single business
a combination of two or more companies to form a single business
merger
natural monopoly
a market situation in which the costs of production are minimized by having a single firm produce the product
a market situation in which the costs of production are minimized by having a single firm produce the product
natural monopoly
recall
a company pulls a product off the market or agrees to change it to make it safe
a company pulls a product off the market or agrees to change it to make it safe
recall
Real GDP
shows an economy’s production after the distortions of price increases have been removed. This eliminates the false impression that output has gone up when prices go up.
shows an economy’s production after the distortions of price increases have been removed. This eliminates the false impression that output has gone up when prices go up.
Real GDP
business cycle
when the economy does not grow at a constant rate, but instead, it goes through alternating periods of growth and decline that we call the ______
when the economy does not grow at a constant rate, but instead, it goes through alternating periods of growth and decline that we call the ______
business cycle
expansion
takes place when real GDP goes up
takes place when real GDP goes up
expansion
peak
the highest point in an expansion
the highest point in an expansion
peak
recession
takes place when real GDP goes down for six straight months, although most last longer than that
takes place when real GDP goes down for six straight months, although most last longer than that
recession
civilian labor force
includes all civilians 16 years old or older who are either working or are looking for work
includes all civilians 16 years old or older who are either working or are looking for work
civilian labor force
unemployment rate
the percentage of people in the civilian labor force who are not working but are looking for jobs
the percentage of people in the civilian labor force who are not working but are looking for jobs
unemployment rate
fiscal policy
changes in government spending or tax policies
changes in government spending or tax policies
fiscal policy
consumer price index (CPI)
a popular measure of the price level, which is made up of the prices about 400 products commonly used by consumers
(the government samples prices every month for about 400 products commonly used by consumers to keep track of inflation)
a popular measure of the price level, which is made up of the prices about 400 products commonly used by consumers
(the government samples prices every month for about 400 products commonly used by consumers to keep track of inflation)
consumer price index (CPI)
inflation
sustained increase in the general level of prices
sustained increase in the general level of prices
inflation
food stamps
government coupons that can be used to purchase food
government coupons that can be used to purchase food
food stamps
Women, Infants, and Children (WIC) program
provides help with nutrition and health care to low-income women, infants, and children up to age 5
provides help with nutrition and health care to low-income women, infants, and children up to age 5
Women, Infants, and Children (WIC) program
workfare
term used to describe programs that require welfare recipients to exchange some of their labor in exchange for benefits
term used to describe programs that require welfare recipients to exchange some of their labor in exchange for benefits
workfare
progressive income tax
the tax rate is lower at lower incomes and higher for higher incomes
the tax rate is lower at lower incomes and higher for higher incomes
progressive income tax
Earned Income Tax Credit (EITC)
gives tax credits and even cash payments to qualified workers
gives tax credits and even cash payments to qualified workers
Earned Income Tax Credit (EITC)
