Social Studies 30-1 Economics

Invisible hand

individual self-interest can unintentionally benefit society

Laissez-faire

very limited government involvement in the economy

Privatization

transferring a government-owned business to private owners

Nationalization

government takes ownership of a private business or industry

Deregulation

reducing government rules on businesses

Universality

social programs are broadly available to eligible people

Means test

checking income or need to decide who qualifies for support

Welfare state

government provides social services and financial support

Fiscal policy

government decisions about spending and taxation

Monetary policy

central-bank actions affecting interest rates and money supply

Budget deficit

government spends more than it receives

Self-interest / profit motive

acting for personal benefit / seeking profit