Economics ch. 3 vocab
Terms
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- business cycle
- a period of macroeconomic expansion followed by a period of contraction
- cash transfers
- direct payments of money to eligible poor people
- public policy
- laws and standards on topics of public interest
- technology
- the process used to produce a good or service
- macroeconomics
- the study of the behavior and decision making of entire economics
- market failure
- a situation in which the market does not distribute resources efficiently
- welfare
- government aid to the poor
- public interest
- the concerns of the public as a whole
- public sector
- the part of the economy that involves the transactions of the government
- public disclosure laws
- laws requiring companies to provide full information about their products
- public good
- a shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers
- externality
- an economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume
- private sector
- the part of the economy that involves the transactions of individuals and businesses
- free rider
- someone who would not choose to pay for a certain good or service but who would get the benefits of it anyway if it were provided as a public good
- microeconomics
- the study of the economic behavior and decision making of small units such as individuals families and businesses
- in kind benefits
- goods and services provided for free or at greatly reduced prices
- interest group
- a private organization that tries to persuade public officials to act or vote according to group members interests
- gross domestic product (GDP)
- the total value of all final goods and services produced in a particular economy
- proverty threshold
- an income level below that which is needed to support families or households