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the branch of social science that deals with the production and distribution and consumption of goods and services and their management
Rational Choice Theory
A popular theory in political science to explain the actions of voters as well as politicians. It assumes that individuals act in their own best interest, carefully weighing the costs and benefits of possible alternatives.
Supply and Demand
an economic concept that states that the price of a good rises and falls depending on how many people want it (demand) and depending on how much of the good is available (supply)
steady growth in the productive capacity of the economy (and so a growth of national income)
the way all the income earned in a country is divided among different groups of income earners
an ambiguity (especially one in the text of a law or contract) that makes it possible to evade a difficulty or obligation
the debt of the national government (as distinguished from the debts of individuals and businesses and political subdivisions)
the idea that government spending and tax cuts help an economy by raising demand
economic theory that holds that money lent to banks and businesses will trickle down to consumers
a government monetary authority that issues currency and regulates the supply of credit and holds the reserves of other banks and sells new issues of securities for the government
policy that results in government control over individuals and businesses. Examples include protection of the environment and consumer protection
the condition when people work at jobs for which they are overqualified or that do not utilize their skills
a long-term economic state characterized by unemployment and low prices and low levels of trade and investment
Gross Domestic Product (GDP)
The total output of all economic activity in the nation, including goods and services.
a government policy for dealing with the budget (especially with taxation and borrowing)
taxes levied on all taxpayers, regardless of income or ability to pay, they tend to place proportionally more of a burden on those with lower incomes.
Earned Income Tax Credit
a "negative income tax" that provides income to very poor individuals in lieu of charging them federal income taxes
a school of economics that believes tax cuts can help an economy by raising supply
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