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| The situation in which the government's tax & other revenues for the year are roughly equal to its expenditures. |
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| The situation in which the government's expenditures exceed its tax & other revenues. |
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| The situation in which the government's tax & other revenues exceed its expenditures. |
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| The tax that individuals pay on money gained from the sale of a capital asset, such as property or stocks. |
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| A form of fiscal policy that emphasizes "demand" (consumer spending). Government can use increased spending or tax cuts to place more money in consumers' hands & thereby increase demand. |
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| The rescinding of excessive government regulations for the purpose of improving economic efficiency. |
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| A very severe & sustained economic downturn. Depressions are rare in the United States; the last one was in the 1930s. |
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| An economic principle holding that firms should fulfill as many of society's needs as possible while using as few of its resources as possible. The greater the output (production) for a given input (for example, an hour of labor), the more efficient the process. |
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| The situation in which the outcome of an economic transaction is fair to each party. An outcome can usually be considered fair if each party enters into a transaction freely & is not unknowingly at a disadvantage. |
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| A moderate but sustained downturn in the economy. Recessions are part of the economy's normal cycle of ups and downs. |
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| A system for the exchange of goods & services between the producers of those goods & services & the consumers of them. |
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| Burdens that society incurs when firms fail to pay the full costs of production. An example of an externality is the pollution that results when corporations dump industrial wastes into lakes & rivers. |
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| A tool of economic management by which government can attempt to maintain a stable economy. |
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| A general increase in the average level of prices of goods & services. |
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| A classic economic philosophy holding that owners of business should be allowed to make their own production & distribution decisions without government regulation or control. |
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| A tool of economic management based on manipulation of the amount of money in circulation. |
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| The total cumulative amount that the U.S. government owes to creditors. |
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| Graduated Personal Income Tax |
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| A tax on personal income in which the tax rate increases as income increases; in other words, the tax rate is higher for higher income levels. |
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| A term that refers to government restrictions on the economic practices of private firms. |
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| A form of fiscal policy that emphasizes "supply" (production). An example of supply-side economics would be a tax cut for business. |
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