Comprehensive Study Guide: Income, Welfare, and Education Policy

A set of vocabulary flashcards derived from a study guide covering topics related to income, welfare, and education policy.

Laissez-Faire

An economic philosophy opposing government intervention in business affairs.

Marginal Tax Rate

The tax percentage applied to each additional dollar of income earned within specific tax brackets.

Capital Gains Tax

A tax on the profits realized from the sale of non-inventory assets like stocks, bonds, and real estate.

Minimum Wage

The lowest legal wage that can be paid to workers, established by law.

EITC (Earned Income Tax Credit)

A refundable tax credit for low-income workers designed to provide financial incentive for work and reduce poverty.

SNAP (Supplemental Nutrition Assistance Program)

A program that provides food-purchasing assistance for low- and no-income people.

Social Insurance

Programs based on an insurance model where eligibility is earned through prior payroll contributions, such as Social Security.

Public Assistance

Programs designed to provide financial aid based on need, requiring a means test for eligibility.

Poverty Line

The official measure of poverty based on triple the cost of a basic food budget.

Right to Work

Laws that prohibit agreements between employers and labor unions that make membership or payment of union dues a condition of employment.

In-Kind Benefit

A non-cash government benefit, such as food stamps or rent vouchers, used for a specified purpose.

The Great Society

A set of domestic programs launched by LBJ aiming to eliminate poverty and racial injustice.

TANF (Temporary Assistance for Needy Families)

A federal grant program that provides monthly cash assistance to low-income families with children, subject to time limits.

Tax Abatement

A reduction or elimination of taxes granted by a government to encourage business investment.

Workforce Unionization

The process of forming unions that represent workers, which peaked in the U.S. during the 1950s.

Productivity Gap

The disparity between the increase in real labor productivity and the increase in hourly compensation.