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| An individual who makes decisions by weighing costs and benefits to maximize their own utility or self-interest. |
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| A theory predicting that in a majority-rule system with single-peaked preferences, the policy outcome will reflect the preferences of the median voter. |
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| The practice of trading votes among legislators, where one supports another's proposal in exchange for reciprocal support. |
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| A system of government in which power is divided between a central (national) government and regional (state) governments. |
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| Taxes imposed on imported goods; also known as tariffs. |
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| A tax whose revenues are designated for a specific purpose or program rather than going into the general fund. |
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| The illegal non-payment or underpayment of taxes owed. |
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| The change in consumption of a good resulting from a change in purchasing power caused by a price change. |
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| The net loss of economic surplus (deadweight loss) caused by a market distortion such as a tax or monopoly. |
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| How the costs and benefits of a policy or tax are shared among different groups in society. |
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| A tax that takes a larger percentage of income from lower-income individuals than from higher-income individuals. |
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| Currency that has value because a government declares it to be legal tender, not because it is backed by a commodity. |
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| A function of money: the ability to hold purchasing power over time. |
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| The Coinage Act of 1873 that demonetized silver, ending bimetallism and putting the U.S. on a de facto gold standard. |
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| Fractional Reserve Banking |
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| A banking system in which banks hold only a fraction of deposits as reserves and lend out the rest. |
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| Reserves held by banks above the required minimum set by the central bank. |
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| Federal Open Market Committee |
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| The committee within the Federal Reserve that sets monetary policy, primarily through open market operations. |
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| American politician and advocate of free silver and bimetallism; famous for the 'Cross of Gold' speech. |
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