24 terms

Chapter 10 Economics

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
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
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
broad social programs that use established eligibility requirements to provide health, nutritional, or income supplements to individuals