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70 Cards in this Set
- Front
- Back
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Antitrust
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Consisting of laws to protect trade and commerce from unlawful restraints and monopolies or unfair business practices
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Bracket creep
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Movement into a higher tax bracket as a result of income rises intended to offset the effects of inflation
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Business cycle
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a cycle of economic activity usually consisting of recession, recovery, growth, and decline
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Cartel
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a combination of independent commercial or industrial enterprises designed to limit competition or fix prices
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Command economics
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an economic system in which activity is controlled by a central authority and the means of production are publicly owned
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Communism
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a totalitarian system of government in which a single authoritarian party controls state-owned means of production
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Socialism
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an economic system in which all or most productive resources are the property of the government, in which the production and distribution of goods and services are administered primarily by the government rather than by private enterprise, and in which any remaining private production and distribution is heavily regulated by the government rather than by market processes .
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Marxism
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The political and economic philosophy of Karl Marx and Friedrich Engels in which the concept of class struggle plays a central role in understanding society's allegedly inevitable development from bourgeois oppression under capitalism to a socialist and ultimately classless society.
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Corporate Welfare
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a term describing a government's bestowal of money grants, tax breaks, or other special favorable treatment on corporations or select corporations
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Corporation
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The most common form of business organization, and one which is chartered by a state and given many legal rights as an entity separate from its owners. This form of business is characterized by the limited liability of its owners, the issuance of shares of easily transferable stock, and existence as a going concern.
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Inside Trading
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the trading of a corporation's stock or other securities (e.g. bonds or stock options) by individuals with potential access to non-public information about the company
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Cost-of-living adjustment
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An annual adjustment in wages to offset a change (usually a loss) in purchasing power, as measured by the Consumer Price Index
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Cycle of equality/Inequality
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Economic cycle that governs the expansion and contraction of the gap of wealth between rich and poor
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Cyclical Unemployment *
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This type of unemployment exists due to inadequate effective aggregate demand. It gets its name because it varies with the business cycle
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Deserving/Undeserving poor *
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people who are poor but have good qualities and are not responsible for having little money vs people who have only themselves to blame for their economic plight
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Distributive policy
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Policy that extends goods and services to a group while distributing the costs of the goods/services among the whole. Examples include government policies that impact spending for welfare, public education, highways, or public safety
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Economic contraction *
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The downward phase of the business cycle, in which GDP is falling and unemployment is rising over time
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Economic efficiency
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General term describing how well a system is performing, in generating the maximum desired output for given inputs with available technology
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Economic expansion *
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An increase in the level of economic activity, and of the goods and services available in the market place
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Economic peak *
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The highest point between the end of an economic expansion and the start of a contraction in a business cycle
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Economic trough *
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The stage of the economy's business cycle that marks the end of a period of declining business activity and the transition to expansion
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Entitlements
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Government paid benefits such as Social Security and Medicare that must be paid to anyone meeting specific eligibility requirements
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Equality of outcomes *
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A form of egalitarianism which seeks to reduce or eliminate differences in material condition between individuals or households in a society by equalizing income and/or total wealth
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Equilibrium
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The point at which demand for goods = supply of goods
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Equity
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the concept or idea of fairness in economics generally viewed in terms of how a policy affects the distribution of income and wealth and in terms of equality of opportunity
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Excise taxes
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A type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country).
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Externalities *
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An impact on any party not directly involved in an economic decision, occuring when an economic activity causes external costs or external benefits to third party stakeholders who cannot directly affect the transaction
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Feudalism
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The system of political organization prevailing in Europe from the 9th to about the 15th centuries having as its basis the relation of lord to vassal with all land held in fee and as chief characteristics homage, the service of tenants under arms and in court, wardship, and forfeiture
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Free rider *
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Those who consume more than their fair share of a resource, or shoulder less than a fair share of the costs of its production
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Great Depression
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A worldwide economic downturn starting in most places in 1929 and ending at different times in the 1930s or early 1940s for different countries. It was the largest and most important economic depression in modern history
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Great Society
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A set of domestic programs proposed or enacted in the United States on the initiative of President Lyndon B. Johnson. Two main goals of the Great Society social reforms were the elimination of poverty and of racial injustice. Spending programs that addressed education, medical care, urban problems, and transportation were launched during this period
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Imperfect competition
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A market structure in which products are not standardized and there are barriers to entry for new firms. Forms include Monopoly, in which there is only one seller of a good. Oligopoly, in which there are a small number of sellers. Monopolistic competition, in which there are many sellers producing highly differentiated goods. Monopsony, in which there is only one buyer of a good. Oligopsony, in which there are a small number of buyers.
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Infrastructure
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the technical structures that support a society, such as roads, water supply, wastewater, power grids, flood management systems, communications, and so forth.
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Inflation *
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A general rise in the level of prices of goods and services over a period of time. More money chasing fewer goods. This condition can lead to a rise in unemployment.
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Unemployment *
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Condition where a person is available to work and currently seeking work, but the person is without work. 3 types include natural, cyclical, and structural. This condition can lease to a rise in inflation.
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Invisible Hand / Price mechanism *
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A metaphor coined by the economist Adam Smith meaning that each individual maximizing revenue for himself maximizes the total revenue of society as a whole, made possible by __, the process by which changes in prices guide and shape changes in the value and types of the goods and services that are produced.
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Laissez faire / Keynesianism **
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An economic ideology which advocates minimal state intervention on the economy. / The idea that the state can stimulate economic growth and improve stability by interfering in the private sector - through, for example, manipulating interest rates, taxation and public projects.
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Law of Demand / Supply
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A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa. / A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services offered by suppliers increases and vice versa.
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Macroeconomy
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The entire national economy taken as a whole, as opposed to specific sectors such as agriculture
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Managed capitalism
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A style of decision making in which corporate leaders try to respond to market changes and intervene to manage the direction of the market
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Spillovers
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An impact on any party not directly involved in an economic decision that occurs when an economic activity causes external costs or external benefits to third party stakeholders who cannot directly affect the transaction
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Market economics
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Economic system wherein the means of production and distribution are privately held, economic transactions between producers and consumers are voluntary, and prices for goods and services help regulate the market.
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Market failure *
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Occurs when supply and demand do not adjust to each other. 5 types include: Imperfect competition (monopoly,oligopoly, monopsony,oligopsony = price/wage distortion. Barriers to entry) Lack of information (cost to aquire, satisfy + suffice) externalities, non-private goods(common goods over-exploited/public goods under-supplied without intervention) , time (perceptions and decision-making systematically under-value future benefits and costs)
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Mercantilism
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System where the economy is subservient to the state, and the state directs economic activity toward its own needs and interests rather than the needs and interests of business
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Military-industrial complex
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Concept commonly used to refer to policy relationships between governments, national armed forces, and industrial support they obtain from the commercial sector in political approval for research, development, production, use, and support for military training, weapons, equipment, and facilities within the national defense and security policy.
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Misery index
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An economic indicator, created by economist Arthur Okun, and found by adding the unemployment rate to the inflation rate.
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Mixed economy *
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An economic system that incorporates aspects of more than one economic system. This usually means an economy that contains both privately-owned and state-owned enterprises[1] or that combines elements of capitalism and socialism, or a mix of market economy and planned economy characteristics
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Monopoly *
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Situation existing when a specific individual or enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it. Characterized by a lack of economic competition for the good or service that they provide and a lack of viable substitute goods
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Natural unemployment
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Unemployment that will always occur in an economy, resulting from frictional unemployment that comes from job turnover, structural unemployment that is caused by a mis-match between job skills and job availability, unemployment caused by minimum wages laws and unions, etc.
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Negative externalities
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Cost not factored into price of good, especially pollution.
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New Deal
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A sequence of programs initiated by FDR between 1933 and 1938 with the goal of giving work (relief) to the unemployed, reform of business and financial practices, and recovery of the economy during The Great Depression
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Panics
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crisis in financial and economic conditions, marked by public loss of confidence in the financial structure...characterized by a general rush of investors to convert their assets into cash, with runs on banks and a rapid fall of the securities market
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Phillips Curve trade-off *
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Inverse relation between the rate of unemployment and the rate of inflation in an economy. Stated simply, the lower the unemployment in an economy, the higher the rate of increase in wages paid to labor in that economy. More money chasing fewer goods = inflation.
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Political-economic culture
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The set of values and institutions that governs the economy as well as the relationship between the political system and the economy.
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Postindustrial era
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An era in which an economic transition has occurred from a manufacturing based economy to a service based economy, a diffusion of national and global capital, and mass privatization.
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Private vs Public goods vs Commons *
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goods defined as excludable - possible to prevent a class of consumers from consuming the good, and rivalrous - consumption by one consumer prevents simultaneous consumption by other consumers
consumption of a good by one individual does not reduce availability of the good for consumption by others; and that no one can be effectively excluded from using the good goods owned by one person, but over which other people can exercise certain rights |
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Privatize/tization *
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The incidence or process of transferring ownership of business from the public sector (government) to the private sector (business)
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Progressive movement
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A reform movement through which Americans struggled to cope with a wide range of social, economic, and cultural changes characterized by the conviction that government at all levels must play an active role in reform
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Progressive taxes *
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A tax imposed so that the tax rate increases as the amount subject to taxation increases.
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Reaganomics
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The economic policies associated with the presidency of Ronald Reagan (1981-1989), included reduced spending for social programs, supply-side tax cuts, deregulation and marketization of decision making, devolution of social policies back to the states, and the privatization of governmental services
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Recession *
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Common term for process where real gross domestic product (GDP) growth is negative for two or more consecutive quarters
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Redistribution
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Policies extending goods or services to a particular group, while extending the cost of those goods and services to a group excluded from them
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Regulation
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Legal restrictions promulgated by government authority
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Social Darwinism
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Theory that competition among all individuals, groups, nations or ideas drives social evolution in human societies
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Social safety net
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Term used to describe a collection of services provided by the state, such as welfare, unemployment benefit, universal healthcare, homeless shelters, the minimum wage and sometimes subsidized services such as public transport, which prevent individuals from falling into poverty beyond a certain level.
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Stagflation *
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An economic situation in which inflation and unemployment occur simultaneously and remain unchecked for a period of time
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Structural unemployment *
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Long-term and chronic unemployment arising from imbalances between the skills and other characteristics of workers in the market and the needs of employers, and overall economic decline
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Tariff
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A tax imposed on goods when they are moved across a political boundary. They are usually associated with protectionism, the economic policy of restraining trade between nations
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Wage-price spiral
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a vicious circular process in which different sides of the wage bargain try to keep up with inflation to protect real incomes. This process in turn is one cause of inflation
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Welfare capitalism *
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The combination of a capitalist economic system with the government practice of providing welfare-like services to people in need
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