Chapter 23 Flashcards
(17 cards)
Goods that , when consumed by one individual , cannot be consumed by another
Private goods
Goods that can be consumed by one person without preventing the consumption of the good by another
Public goods
Unintended side effect of an action that affects someone not involved in the action
Externality
A law to control monopoly power && to preserve && promote competition
Antitrust
Combination of two or more companies to form a single business
Merger
A market situation in which the costs of production are minimized by having a single firm produce the product
Natural monopoly
A situation in which a company pulls a product off the market or agrees to change it to make it safe
Recall
A measure of the economy that shows an economy’s production after the distortion of price increases have been removed
Real GDP
Alternating periods of growth and decline in an economy
Business cycle
A downward trend in the economy shown when the real GDP goes down for 6 straight months
Recession
All civilians 16 yo+ who are either working or looking for work
Civilian labor force
Changes in gov spending or tax policies
Fiscal policy
Sustained increase in the general level of prices
Inflation
A measure of the price level of 400 consumer items used to keep track of inflation
Consumer price index (( CPI ))
A Tax rate in which he amount of taxes paid is lower for Lower incomes and higher for higher incomes
Progressive income tax
A fed program that gives tax credits && even cash payments to low income families && individuals
Earned income tax credit (( EITC ))
Gov roles in economic activity
- Providing public goods && services (( schools && roads ))
- Dealing w externalities
- Protect safety (( truth && advertising ))
- Maintaining competition
- Regulating market activities
