AP Gov- Economics

capitalism

an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state

mixed economy

an economic system combining private and public enterprise

command economy

an economy in which production, investment, prices, and incomes are determined centrally by a government

revenue

money received from taxation, fees, fines, inter-governmental grants or transfers, securities sales, mineral rights and resource rights, as well as any sales that are made

office of budget and management

administers the United States federal budget and oversees the performance of federal agencies

congressional budget office

provides budget and economic information to Congress

entitlements

rights granted to citizens and certain non-citizens by federal law

poverty threshold

original version of the federal poverty measure; updated each year by the Census Bureau, mainly used for statistical purposes

multinational corporations

owns or controls production of goods or services in one or more countries other than their home country

securities and exchange commission

goal to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation

labour union

organization of workers intended to engage in collective bargaining

collective bargaining

negotiations between representatives of labour unions and management to determine pay and acceptable working conditions

unemployment rate

measured by the bureau of labour statistics, the proportion of the labour force actively seeking work but unable to find jobs

inflation

a rise in the price of goods and services

consumer price index

key measure of inflation, the change in the cost of buying a fixed basket of goods and services

laissez-faire

principle that government should meddle in the economy; means “let it be”

monetary policy

government manipulation of the supply of money in private hands; using discount rate (interest rates), reserve requirements, open market operations (bonds)

monetarism

economic theory holding that the supply of money is the key to a nation's economic health, with too much cash and credit in circulation producing inflation

federal reserve system

main instrument for making monetary policy; created by congress to regulate the lending practices of banks, and thus the money supply

fiscal policy

use of the federal budget; taxes, spending, and borrowing to influence the economy

keynesian economic theory

theory emphasising that government spending and deficits can help the economy; supporters advocate using the power of the government to stimulate the economy when it is lagging

supply-side economics

economic theory, first applied during the Reagan administration and favoured by republicans, holding that the key task for fiscal policy is to stimulate the supply of goods, by cutting tax rates

protectionism

shielding an economy from imports

world trade organisation

international organisation that promotes free trade

antitrust policy

policy designed to ensure competition and prevent monopoly

national labour relations act

law, also known as the Wagner Act, that guarantees workers the right of collective bargaining, sets down rules to protect unions and organisers, and created the National Labor Relations Board to regulate labor-management relations

taft-hartley act

federal law that prohibited certain union practices and required improvement in union disclosure of financial and political dealings

food and drug administration

responsible for protecting the public health by ensuring the safety of human and veterinary drugs, biological products, medical devices, food supply, cosmetics, etc

enviromental protection agency

protecting human health and the environment by writing and enforcing regulations based on laws passed by Congress

business cycle

fluctuation of economic activity that happens to the economy over a period of time; peak, recession, trough/depression, recovery, expansion

scarcity

society has insufficient productive resources to fulfill all human wants and needs

economic stimulus

use of monetary or fiscal policy changes to kick start growth during a recession; lowering interest rates, increasing government spending

economic security

condition of having stable income or other resources to support a standard of living now and the foreseeable future

economic equity

concept of equality in economy