ch. 18 vocab: econ

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basav21
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ch. 18 vocab: econ
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2012-04-12 21:02:56
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vocab about economic policy
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  1. fiscal policy
    gov policy that attempts to manage the econ by controlling taxes and spending
  2. monetary policy
    gov policy that attemps to manage the econ by controlling the money suppoly and thus interest rates
  3. inflation
    a rise in the general price level (and decrease in dollar value) owing to an increase in the volume of money and credit in relation to available goods
  4. unemployment
    the number of Americans who are out of work but actively looking for a job. the number does not usually include those who are not looking
  5. stagflation
    a combo of an econ slowdown (stagnation) and a rise in prices (inflation)
  6. gross domestic product (GDP)
    the value of all goods and services produced by an economy during a specific period of time such as a year
  7. excise tax
    a consumer tax on a specific kind of merchandise, such as tobacco
  8. budget deficit
    the condition that exists when the federal gov raises less revenue than it spends
  9. tariff
    a tax levied on imports to help protect a nation's industries, labor, or farmers from foreign competition. It can also be used to raise additional revenue
  10. progressive tax
    a tax graduated so that people with higher incomes pay a larger fraction of their income than people with lower incomes
  11. regressive tax
    a tax whereby people with lower incomes pay a higher fraction of their income than people with higher incomes
  12. national debt
    the total amount of money the federal gov has borrowed to finance deficit spending over the years
  13. Office of management and budget (OMB)
    the presidential staff agency that serves as a clearinghouse for budgetary requests and management improvements for governement agencies
  14. Congressional Budget Office
    an agency of Congress that analyzes presidential budget recommedations and estimates the costs of proposed legislation
  15. tax expenditure
    a loss of tax revenue due to federal laws that provide special tax incentives or benefits to indiv or businesses
  16. sales tax
    a general tax on sales transactions, sometimes exempting such items as food and drugs
  17. value-added tax (VAT)
    a tax on increased value of a product at each stage of production and distribution rather than just at the point of sale
  18. Federal Reserve System
    • the system created by Congress in 1913 to establish banking practices and regulate currency in circulation and the amount of credit available. It consists of 12 regional banks supervised by the Board of Governors.
    • often called simply "the Fed"
  19. federal funds rate
    the amount of interest banks charge for loans to each other
  20. laissez-faire econ
    a theory that opposes gov interference in econ affairs beyond what is necessary to protect life and property
  21. Keynesian econ
    an economic theory based on the principles of John Maynard Keynes stating that gov spending should increase during business slumps and be curbed during booms
  22. protectionism
    a policy of erecting trade barriers to protect domestic industry
  23. trade deficit
    an imbalance in international trade in which the value of imports exceeds the value of exports
  24. World Trade Organization (WTO)
    an international organization derived from the General Agreement on Tariffs, and Trade (GATT) that promotes free trade around the world
  25. General Agreement on Tarriffs and Trade (GATT)
    an international trade organization with more than 130 members that seeks to encourage free trade by lowering tariffs and other trade restrictions
  26. North American Free Trade Agreement (NAFTA)
    an agreement signed by the US, Canada, an MX in 1992 to form the largest free trade zone in the world
  27. Monopoly
    • domination of an industry by a single company (oligopoly = by several)
    • also the company that dominates the industry
  28. antitrust legislation
    Federal laws (starting with the Sherman Antitrust Act of 1890) that try to prevent a monopoly from dominating an industry and restraining trade
  29. trust
    a monopoly that controls goods and services, often in combinations that reduce competition
  30. closed shop
    a company with a labor agreement under which union membership is a condition of employment
  31. union shop
    a company in which new employees must join a union within a stated time period
  32. labor injuction
    a court order forbidding specific indivs or groups from performing certain acts (such as striking) that the court considers harmfu to the rights and property of an employer or a community
  33. collective bargaining
    a method whereby representatives of the union and employer determine wages, hours, and other conditions of employment through direct negotiation
  34. environmental impact statement
    a statement required by federal law from all agencies for any project using federal funds to assess the potential effect of the new construction or development on the environment
  35. corporate social responsibility
    efforts by corporations to improve their reputations by paying attention to their contributions to the social good
  36. deregulation
    a policy promoting cutbacks in the amount of federal regulation in specific areas of economic activity

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