KTQ 13: Domestic Policy

Unit 4 Examination practice test #1

Law, rule, statute, or edict that expresses the government's goals and provides for rewards and punishments to promote those goals' attainment

public policy

Grants of cash or other valuable commodities to guide and promote public policy

subsidies

Setting conditions on companies seeking to sell goods and services to government agencies

contracting power

Using subsidies and contracting power to guide and promote public policy

spending power

Using civil or criminal penalties to guide and promote public policy

police regulation

Using rules made by public agencies to guide and promote public policy

administrative regulations

Using tax policy to guide and promote public policy

regulatory taxation

Taking private property to redirect its purpose in order to guide and promote public policy

expropriation

Efforts to regulate the conomy through the manipulation of the supply of money and credit

monetary policy

System of 12 Federal Reserve Banks that facilitates exchanges of cash, checks, and credit, regulates member banks, and uses monetary policy to fight inflation and deflation

federal reserve system

Use of taxing and spending powers to manipulate the economy

fiscal policy

Collecting revenue in such a way as to reduce disparities of wealth between the lowest and highest income brackets

redistribution

Private and voluntary assistance given to the poor or needy

charity

Social programs financed in whole or in part by taxation or other mandatory contributions by their present or future recipients

contributory programs

Program into which working Americans contribute a percentage of their wages and from which they receive cash benefits after retirement or if they become disabled

Social Security

National health insurance for the elderly and disabled

Medicare

Periodic process of adjusting of social benefits or wages to account for increases in the cost of living

indexing

Changes made to the level of benefits of a program, usually based on the rate of inflation

cost-of-living adjustments (COLAs)

Social programs that provide assistance to people based on demonstrated need rather than any contribution they have made

noncontributory programs

Procedure by which potential beneficiaries of a public-assistance program establish their eligibility by demonstrating a genuine need for assistance

means testing

Federal and state-financed, state-operated program providing medical services to low-income people

Medicaid

Program which provides recipients with a debit card for food at most grocery stores

Supplemental Nutrition Assistance Program (SNAP)

Noncash goods or services provided to needy individuals and families by the federal government

in-kind benefits

Government subsidies provided to employers and employees through tax deductions for amounts spent on health insurance or other benefits

tax expenditure

Benefits provided by employers to employees, such as medical insurance and retirement plans

fringe benefits