Making Economic and Regulatory Policy Flashcards
Public Policy
A specific course of action taken by government to achieve a public goal
Policy Agenda
The informal list of issues that Congress and the president consider most important for action
Distributive Policy
A type of policy that provides benefits to all Americans
Redistributive Policy
A type of policy that takes benefits (through taxes) from one group of Americans and gives them to another (usually through spending)
Rule
The precise legal definition of how government will implement a policy
Iron Triangle
A policy-making alliance that involves a very strong ties among a Congressional committee, an interest group, and a Federal Department or agency
Issue Network
A policy-making alliance almond loosely connected participants that comes together on a particular issue, then disbands
Fiscal Policy
Government policy that attempts to manage the economy by controlling taxing and spending
Monetary Policy
Government policy that attempts to manage the economy by controlling the money supply and thus interest rates
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
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
Excise Tax
Consumer tax on a specific kind of merchandise, such as tobacco
Deficit
The difference between the revenues raised annually from sources of income other than borrowing and the expenditures of government, including paying the interest on past borrowing
Tariff
Tax levied on imports to help protect the nation’s industries, labor, or farmers form foreign competition. It can also be used to raise additional revenue
Progressive Tax
A tax graduated so that people with higher incomes pay larger fraction of their income than people with lower incomes
Regressive Tax
A tax whereby people with lower incomes pay a higher fraction of their income than people with higher incomes
National Debt
The total amount of money the Federal government has borrowed to finance deficit spending over the years
Office of Management and Budget (OMB)
Presidential staff agency that serves as a clearinghouse for budgetary requests and management improvements for government agencies
Congressional Budget Office (CBO)
An agency of Congress that analyzes presidential budget recommendations and estimates the cost of proposed legislation
Sales Tax
General tax on sales transactions, sometimes exempting food and drugs
Value-added Tax (VAT)
A tax on increased value of the product at each stage of production and distribution rather than just at the point of sale
Tax Expenditure
Loss of tax revenue due to Federal laws that provide special tax incentives or benefits to individuals or businesses
Monetarism
A theory that government should control the money supply to encourage economic growth and restrain inflation
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
