Chapter 10 Economics
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24 terms
Terms | Definitions |
|---|---|
 per capita | per person |
| public sector | the part of the economy made up of federal, state, and local governments |
| private sector | the part of the economy made up of private individuals and privately-owned businesses |
| transfer payment | a payment for which the government receives neither goods nor services in return |
| grant-in-aid | a transfer payment one level of government makes to another |
| distribution of income | the way in which income is allocatedamong families, individuals, or other designated groups in the economy |
| federal budget | an annual plan outlining proposed revenues and expenditures for the coming year |
| mandatory spending | spending authorized by law that continues without the need for annual approvals of Congress |
| discretionary spending | programs that must receive annual authorization |
| fiscal year | a 12-month financial planning period that may or may not coincide with the calender year |
| federal budget deficit | an excess of expenditures over revenues |
| federal budget surplus | federal budget that shows a positive balance after expenditures are subtracted from revenues |
| appropriations bill | an act of Congress that allows federal agencies to spend money for specific purposes |
| medicaid | a joint federal-state medical insurance program for low-income persons |
| balanced budget amendment | a constitutional amendment that requires that annual spending not exceed revenues |
| intergovernmental expenditures | funds that one level of government transfers to another level for spending |
| deficit spending | spending in excess of revenues collected |
| federal debt | the total amount borrowed from investors to finance the government's deficit spending |
| balanced budget | an annual budget in which expenditures equal revenues |
| trust funds | special accounts used to fund specific types of expenditures such as Social Security and medicare |
| crowding-out effect | the higher-than-normal interest rates that heavy government borrowing causes |
| pay-as-you-go provision | a requirement that new spending proposals or tax cuts must be offset by reductions elsewhere |
| spending caps | legal limits on annual discretionary spending |
| entitlements | broad social programs that use established eligibility requirements to provide health, nutritional, or income supplements to individuals |
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