Unit 3 - Civics (edited)

diplomacy

the cultivation of peaceful relationships between countries through communication and negotiation

isolationism

an approach to foreign policy in which a country avoids political or economic entanglements

interventionism

an approach to foreign policy in which a country becomes involved in the political or economic affairs of other countries

imperialist

relating to the extension of a country's power through acquisition of territory and involvement in that territory's economy or government

fiscal policy

the part of economic policy concerned with raising tax revenue to spend on government programs

monetary policy

the part of economic policy concerned with the management of interest rates, inflation, and the money supply

mandatory programs

a government program whose spending is set in advance and can only be changed by the passage of new laws

discretionary programs

a government program whose budget can be changed from year to year as determined by Congress

surplus

the money left over when revenue exceeds spending

deficit

the shortfall when spending exceeds the amount of money brought in

interest

a charge for borrowed money that is typically a percentage of the amount borrowed

inflation

the general increase in prices over time

"dual mandate"

the requirement that the Federal Reserve work to maximize employment and keep prices stable in order to also regulate interest rates

expansionary

in monetary policy, tending to promote spending and increase employment with the side effect of driving up inflation

contractionary

in monetary policy, tending to suppress spending and slow inflation with the side effect of increasing employment

subsidize

to financially support with public money

monopolistic competition

competition among many firms producing similar but not identical products

perfect competition

an economic concept in which a market operating under idealized conditions leads to a situation where no single consumer or producer has the power to influence the price of goods or services

export

a good or service that is produced in one country and sold to buyers in another country

import

a good or service that is bought in one country after being produced in another country

globalization

the process of developing increasingly integrated economic, technological, and cultural connections among people and countries worldwide

protectionist

focused on protecting a country's domestic industries and producers by restricting foreign competition

comparative advantage

the ability of a country to produce a good or service at a lower cost relative to other products than other countries can

embargo

a legal prohibition on doing business or conducting trade with a certain country

proxy war

a conflict fought with the support of other, usually more powerful countries that do not themselves take part in the fighting

supranational

having authority that transcends individual national governments

international law

the set of laws that countries recognize in their dealings with one another

nongovernmental organization (NGO)

a nonprofit organization that functions independently of governments

intergovernmental organization (IGO)

an organization through which multiple countries' governments coordinate their activities in some areas of policy

sanction

an economic or political restriction placed by one or more countries on another country as punishment for not complying with international law or policy