AP Gov Terms Ch. 18

  1. public policy
    a specific course of action taken by government to achieve a public goal
  2. policy agenda
    the informa list of issues that Congress and the president consider most important for action
  3. distributive policy
    a type of policy that provides benefits to all Americans
  4. redistributive policy
    a type of policy that takes benefits (usually through taxes) from one group of Americans and gives them to another (usually through spending)
  5. regressive tax
    a tax whereby people with lower incomes pay a high fraction of their incomes than people with higher incomes
  6. rule
    a precise legal definition of how government will implement a policy
  7. iron triangle
    A policy making alliance that involves very strong ties among:

    • 1.) a Congressional committee,
    • 2.) an interest group, and
    • 3.) a federal deparment or agency
  8. issue network
    a policy making alliance among loosely connected participants that comes together on a particular issue, then disbands
  9. fiscal policy
    government policy that attempts to manage the economy by controlling taxing and spending
  10. monetary policy
    government policy that attemps to manage the economy by controll the money supply and thus interest rates
  11. inflation
    a rise in general price level (and decrease in currency value) owing yo an increase in the volume of money and credit in relation to available goods
  12. unemployment
    the number of Americans who are out of work but actively look for a job (does not include those not looking for a job)
  13. tariff
    tax levied on importants to help protect a nation's industries, labor, or farmers from foreign competition (and/or to raise additional revenue)
  14. excise tax
    consumer tax on a specific kind of merchandise, such as tobacco
  15. progressive tax
    a tax graduated so people with a higher income pay a higher portion of their income than those with lower incomes
  16. deficit
    difference between government revenue and government spending (usually in the negatives)
  17. national debt
    how much the government owes from financiancing the deficit
  18. gross domestic product (GDP)
    total output of all economic activity of a nation
  19. entitlements
    government programs, such as unemployment insurance, disaster relief, and disability payments, that provide benefits to all eligible citizens
  20. OMB
    Office of Management and Budget (clearing house for budgetary requests and manages improvements for government agencies)
  21. CBO
    Congressional Budget Office (an agency of Congress that analyzes presidential budget recommendations and estimates the cost of proposed legislation)
  22. sales tax
    general tax on sales transactions
  23. value-added tax (VAT)
    tax on increased value of a product at each stage of production rather than just at the point of sale
  24. tax expenditure
    loss of tax revenue due to federal laws that provide special tax incentives or benefits to individuals or businesses
  25. monetarism
    theory that government should control money supply to encourage economic growth and restrain inflation
  26. Federal Reserve System
    • "the fed"
    • created by Congress in 1913
    • conists of 12 regional bankes supervised by the Board of Governors
    • establishes banking practices and regulates currency in circulation and the amount of credit available
  27. laissez-faire economics
    theory that opposes government interference in economic affairs beyond what is necessary to protect life and property
  28. Keynesian economics
    • "spend your way out of debt" theory
    • government should increase spending during business slumps and curb itself during business booms
  29. trade deficit
    imbalance in international trade where value of imports exceeds value of exports
  30. World Trade Organization (WTO)
    international organization that promotes free trade around the world

    derived from the General Agreement on Tarriffs and Trade (GATT)
  31. General Agreement on Tarrifs and Trade (GATT)
    international trade organizationthat seeks to encourage free trade by lowering tariffs and other trade restrictions
  32. Norht American Free Trade Agreement (NAFTA)
    agreement signed by US, Mexico, and Canada to form the largest free-trade zone in the world
  33. protectionism
    policy of erecting trade barriers to protect domestic industry
  34. regulation
    government altering free economic operation for social goals like protecting workers and the environment
  35. monopoly
    • domination of a company by a single industry
    • company that dominates the industry
    • the board game at the heart of all broke sibling relationships :P
  36. trust
    monopoly that controls good and services to reduce competition
  37. antitrust legislation
    federal laws that try to prevent monopolies
  38. closed shop
    a company with a labor agreement in which union membership is a condition of employment
  39. union shop
    companies in which an employee must join a union within a state time period
  40. labor injunction
    court order forbidding striking to protect employer or community
  41. collective bargaining
    method through which unions negotiate with companies or industries for better employment conditions
  42. environmental impact statement
    required statement assessing agency's actions' impact on environment
  43. deregulation
    cutting back on number of regulations in place
Card Set
AP Gov Terms Ch. 18
Chapter 18 - Making Economic and Regulatory Policy