39 terms

Government Regulation - Unit 4

STUDY
PLAY
Trade
Exchange of goods and services
Subsidies
A grant or contribution of money, especially one made by a government in support of an undertaking or the upkeep of a thing, such as a business or the production of a certain good
Imports
Goods and services brought into a nation from another nation
Exports
Goods produced domestically and sold abroad
Trade Surplus
When a country exports more than it imports
Trade Deficit
When a nation imports more goods and services than it exports
Trade Barriers
Taxes, quotas, and other restrictions on goods entering or leaving a country.
Quota
A limit placed on the quantities of a product that can be imported
Tariff
A tax on imported goods
Exchange Rate
The measure of how much one currency is worth in relation to another.
Comparative Advantage
The ability of a country to produce a good at a lower cost than another country can.
Monopolies
Corporations that gain complete control of the production of a single good or service.
Trusts
Firms or corporations that combine for the purpose of reducing competition and controlling prices (establishing a monopoly). There are anti-trust laws to prevent these monopolies.
Business Cycle
Alternating periods of economic expansion and economic contraction
Peak
The height of an economic expansion, when real GDP stops rising
Trough
Lowest point of a real GDP in the business cycle
Expansion
A period of economic growth as measured by a rise in real GDP
Contraction
A period of economic decline marked by falling real GDP
Real GDP
GDP adjusted for price changes
GDP
The total market value of all final goods and services produced annually in an economy
Recession
A slowdown in economic activity over a period of time. During one of these periods all of the following things decline: Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes, business profits and inflation. Meanwhile bankruptcies and the unemployment rate rise.
Tax Revenue
The money a government gains from the collection of taxes
Excise Tax
A tax on the production or sale of a good
Income Tax
A tax on people's earnings
Welfare
The health, prosperity, and happiness of the members of a community
SNAP
Supplemental Nutrition Assistance Program - assists low income families in purchasing nutritious foods.
TANF
The Temporary Assistance for Needy Families (TANF) program provides temporary financial assistance for pregnant women and families with one or more dependent children.
Social Security
Guaranteed retirement payments for enrolled workers beginning at age 65; set up federal-state system of unemployment insurance and care for dependent mothers and children, the handicapped, and public health
Public Goods
Goods or services that government supplies to its citizens; can be used by many individuals at the same time without reducing the benefit each person receives
Outsourcing
Hiring workers in other countries to do a set of jobs
Currency
Coins and paper bills used as money
EPA
Environmental Protection Agency -
An independent federal agency established to coordinate programs aimed at reducing pollution and protecting the environment
FTC
Federal Trade Commission - a government agency that promotes free and fair competition by prevention of trade restraints, price fixing, false advertising and unfair methods of competition:
FDA
Food and Drug Administration - The agency that is responsible for determining if a food or drug is safe and effective enough to be sold to the public.
Payroll tax
Tax paid by employers
Expenditures
Money that is spent by the government on public goods/services.
Protectionism
An economic policy that encourages citizens to by goods/services made within their own country by implementing trade barriers such as tariffs and quotas.
Medicare
A government funded health insurance program for Americans 65 and older
Medicaid
A government funded health insurance programs for low income Americans