Unit 8 AP Gov/Econ

Affordable Care Act (“Obamacare”)

A 2010 law that expanded healthcare coverage through subsidies, Medicaid expansion, and insurance exchanges, while prohibiting insurers from denying coverage for preexisting conditions.

Balanced Budget

A budget in which government revenues (taxes) equal expenditures (spending) in a fiscal year.

Budget Deficit

When government expenditures exceed revenues in a fiscal year, resulting in increased national debt.

Bush Doctrine

A foreign policy stance under George W. Bush that advocated for preemptive military action to prevent terrorism and the spread of weapons of mass destruction.

Business Cycles

Periods of economic expansion and contraction (growth and recession) that naturally occur in the economy.

Charter Schools

Publicly funded schools that operate with greater independence from government regulations, often with a specific mission or educational approach.

Clean Air Act of 1970

Federal law that established national air quality standards and authorized the Environmental Protection Agency (EPA) to regulate emissions of pollutants.

Clean Water Act of 1972

Federal law regulating the discharge of pollutants into U.S. waters and setting water quality standards.

Cold War

Period of political and military tension (1947–1991) between the U.S. and Soviet Union marked by ideological conflict and nuclear arms buildup.

Containment

U.S. foreign policy during the Cold War aimed at preventing the spread of communism.

Congressional Budget Office

A nonpartisan federal agency that analyzes the budget and economic issues to inform Congress’s decisions.

Consumer Price Index (CPI)

A measure of the average change in prices for consumer goods and services over time, used to calculate inflation.

Debt

The total amount of money the federal government owes from accumulated deficits.

Deficit Spending

When the government spends more money than it collects in revenue, leading to increased debt.

Democratic Enlargement

U.S. foreign policy that seeks to promote democracy around the world.

Deregulation

Reducing or eliminating government rules and restrictions on businesses to increase efficiency and competition.

Détente

A period of relaxed tensions and improved relations between the U.S. and the Soviet Union during the Cold War (1969–1979).

Discount Rate

The interest rate the Federal Reserve charges banks for short-term loans, influencing money supply and inflation.

Discretionary Spending

Federal spending that Congress must approve each year through appropriations (e.g., defense, education).

Domino Theory

The belief that if one country falls to communism, neighboring countries will also fall.

Endangered Species

Plant and animal species at risk of extinction, protected under the Endangered Species Act.

Energy Dependent

When a country relies on imports of energy sources like oil and gas.

Entitlement Programs

Government programs that provide benefits to individuals who meet eligibility requirements (e.g., Social Security, Medicare).

Environmental Protection Agency (EPA)

A federal agency responsible for regulating and enforcing environmental protection laws.

Favorable Balance of Trade

When a country exports more goods and services than it imports.

Federal Reserve System

The central banking system of the U.S. that manages monetary policy by controlling interest rates and the money supply.

Fiscal Policy

Government policies on taxation and spending to influence the economy.

Fiscal Year

The government’s budget year, starting on October 1 and ending on September 30.

Flat Tax

A tax system in which everyone pays the same percentage of income, regardless of income level.

Food Stamp Program (SNAP)

A federal program that provides low-income individuals with financial assistance for food purchases.

General Agreement on Tariffs and Trade (GATT)

A post-WWII international agreement to reduce trade barriers and promote free trade, replaced by the World Trade Organization (WTO) in 1995.

Global Interdependence

The interconnectedness of world economies through trade, investment, and finance.

Global War on Terrorism

U.S. military and diplomatic efforts to combat terrorist organizations after the September 11, 2001 attacks.

Global Warming

The increase in Earth’s average temperature due to greenhouse gas emissions.

Greenhouse Gases

Gases (e.g., carbon dioxide, methane) that trap heat in the atmosphere and contribute to global warming.

Gross Domestic Product (GDP)

The total value of all goods and services produced within a country in a given year.

Inflation

A general increase in prices and decrease in the purchasing value of money.

Interventionist State

A government that actively regulates and manages the economy.

Isolationism

A foreign policy approach that avoids involvement in international affairs.

Laissez-Faire State

A government that minimally interferes in the economy, allowing free market forces to operate.

Linkage Institution

Institutions (e.g., political parties, media, interest groups) that connect citizens to the government.

Mandatory Spending

Federal spending required by law, such as Social Security and Medicare.

Means-Tested Programs

Programs that provide benefits only to individuals who meet specific income requirements (e.g., Medicaid).

Medicaid

A joint federal and state program that provides health care to low-income individuals.

Medicare

A federal health insurance program for people over 65 and certain younger individuals with disabilities.

Military-Industrial Complex

The relationship between the military, defense contractors, and government policymakers.

Monetary Policy

Federal Reserve policies that control the money supply and interest rates to influence the economy.

National Energy Policy

Government policies that address energy production, consumption, and independence.

No Child Left Behind Act (NCLB)

A 2002 law that increased federal oversight of public education and set standards for student performance.

Non-Means-Tested Programs

Government programs available to all individuals regardless of income (e.g., Social Security).

Nonrenewable Resources

Natural resources (e.g., oil, coal) that cannot be replenished quickly.

North American Free Trade Agreement (NAFTA)

A 1994 trade agreement between the U.S., Canada, and Mexico to reduce trade barriers.

North Atlantic Treaty Organization (NATO)

A military alliance of Western countries formed in 1949 to counter Soviet aggression.

Office of Management and Budget (OMB)

The executive office that prepares the president's budget and oversees federal spending.

Patriot Act

A post-9/11 law that expanded government surveillance and counterterrorism powers.

Poverty Line

The minimum income level required to meet basic living expenses.

Progressive Tax

A tax system in which higher incomes are taxed at higher rates.

Protectionism

Economic policy that protects domestic industries through tariffs and trade restrictions.

Public Policy

Government actions and decisions intended to address public issues.

Recession

A period of economic decline lasting at least six months.

Regressive Tax

A tax system in which lower-income individuals pay a higher percentage of their income.

Renewable Resources

Natural resources that can be replenished naturally (e.g., solar, wind).

Reserve Requirements

The amount of money banks must hold rather than lend, set by the Federal Reserve.

Safety Net

Government programs that provide support during economic hardship.

School Vouchers

Government funding that allows students to attend private schools.

Social Security

A federal program that provides retirement and disability benefits.

Social Welfare

Government programs that provide assistance to individuals in need.

Strategic Arms Limitation Talks (SALT)

Cold War negotiations between the U.S. and Soviet Union to limit nuclear weapons.

Superfund

A federal program that cleans up hazardous waste sites.

Taliban

An Islamic fundamentalist group that controlled Afghanistan and provided support to terrorist organizations.

Tariffs

Taxes on imported goods.

Title IX

A law prohibiting gender discrimination in federally funded education programs.

Trade Deficit

When a country imports more goods and services than it exports.

Unfunded Mandate Act of 1997

A law limiting federal mandates on state governments without funding.

Welfare Reform Act of 1996

A law that placed work requirements and time limits on welfare benefits.

Workfare

A welfare program requiring recipients to work or train in exchange for benefits.