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AP Government Chapter 17 Vocabulary

Terms in this set (20)

antitrust policy
gov't regulation of business to ensure competition and prevent monopoly (control of one company)
capitalism
an economic system in which individuals and corporations own the principal means of production, through which they seek to reap profits
collective bargaining
the right of workers to have labor union representatives negotiate with management to determine working conditions
Consumer Price Index (CPI)
a gov't statistic that measures the change in cost of buying a fixed basket of goods and services
Federal Reserve System
created by Congress in 1913 to regulate the lending practices of banks and thus the money supply
fiscal policy
the gov't's decisions to tax, spend, and borrow, as reflected in the federal budget
Food and Drug Administration (FDA)
gov't agency with broad regulatory powers over the manufacturing, contents, marketing and labeling of food and drugs
inflation
a gov't statistics that measures increases in price of goods
Keynesian economic theory
the theory emphasizing that gov't spending and deficits can help the economy weather its normal ups and downs. Proponents of this theory advocate using the power of gov't to stimulate the economy when it is lagging
laissez-faire
a belief that gov't should not intervene in the economy
mixed economy
a system in which the gov't, while not commanding the economy is still deeply involved in economic decisions
monetarism
economic theory that suggests that the supply of money is key to the nation's economic health
monetary policy
gov't decisions regarding the money supply, including the discount rates for bank borrowing, reserve requirements for banks, and trading of gov't securities
multinational corporation
businesses with vast holdings in many countries
National Labor Relations Act
passed by Congress in 1935, guarantees workers the right of collective bargaining, also known as the Wagner Act
protectionism
the economic policy of shielding an economy from exports
right-to-work laws
laws forbidding labor contracts from requiring workers to join unions to hold their job
Securities and Exchange Commission
the federal agency created during the New Deal that regulates stock fraud
supply-side economics
economic philosophy that holds that the key task for gov't economic policy is to stimulate the supply of goods, not their demand.
unemployment rate
a gov't statistics that measures how many workers are actively seeking work but are unable to find jobs
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