Upgrade to remove ads
Only $2.99/month

Economics Chapter 3 Review

Terms in this set (18)

Free Rider
Someone who would not choose to pay
for certain goods or services, but would
get the benefits of it anyway if it were
provided as a public good.
Private Sector
Involves transactions of individuals and
businesses.
Poverty Rate
The percentage of people who live in
households with income below the official
poverty line.
Enterprise zones
Area where companies can locate free of
certain local, state, and federal taxes and
restrictions.
welfare
A general term that refers to
government aid for the poor.
Public Sector
Involves the transactions of the
government.
In kind benefits
Goods and services provided for free or
at greatly reduced prices; including food
stamps, subsidized housing.
market failure
A situation in which the market does not
distribute resources efficiently.
poverty threshold
An income level below that which is
needed to support families and
households.
infrastructure
consists of all the goods and services that are a necessary for the funcioning of society
public good
a shared good or service for which it would be inefficient or impractical to make consumers pay individually for and to exclude nonpayers
cash transfers
direct payments of money to poor, disabled, and/or retired people
workfare
program requiring work in exchange for public assistance
externalities
an economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume
list 3 public goods
roads
power
education
4 welfare programs
food stamps
Social Security
Medicare
Medicaid
5 causes of poverty
1. Lack of education
2. Location
3. Racial and gender discrimination
4. Economic shifts
5. Shifts in family structure
3 circumstances in which people can receive assistance from the welfare system.
poor
disabled
retired
THIS SET IS OFTEN IN FOLDERS WITH...