ch. 16 & 17. 55.what are “public goods?” goods and services that the government provides...
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CH. 16 & 17
55.WHAT ARE “PUBLIC GOODS?”
Goods and services that the government provides
for its citizens
Ex. Public school
Pg. 430
56. WHAT IS A “MERIT GOOD?”
Certain goods and services that are considered to
have special socially desirable by government leader.
Ex. Museums, ballets, and classical music concerts
Pg. 430
5 7 . W H AT I S O N E E XA M P L E O F T H E G OV E R N M E N T “ R E D I S T R I B U T I N G I N C O M E ? ”
Social security, medicaid, workers compensation,
welfare
Pg. 431
58. WHAT IS AN “ESTATE TAX?”
Federal tax on somebody who has died
Pg. 441
59 . WHAT TAX IS THE MAJOR SOURCE OF REVENUE FOR LOCAL
GOVERNMENTS AND PUBLIC SCHOOLS?
Property tax
Pg. 441
60 . WHAT IS A “PROGRESSIVE TAX?”
When an individual earns a higher income, his or
her taxed increase more than in proportion to the
increase in money income
Ex. Business owners such as McDonalds pay more
taxes
Pg. 443
61 . L IB ERALS BELIEVE TH AT TH E FEDERAL GOVERNMENT CAN
ST IM ULATE AN ECONOMY BY DOING WH AT?
By using stabilization policies
Ex. Federal gov.’s use of taxation and spending
policies to affect business activity
Pg. 451
6 2 . C O N S E R VA T I V E S B E L I E V E T H A T T H E F E D E R A L G O V E R N M E N T C A N S T I M U L A T E A N E C O N O M Y B Y D O I N G
W H A T ?
Increase taxes, reducing government spending.
Pg 459
63. WHAT IS THE DEFINITION OF “UNEMPLOYMENT RATE?”
The percentage of the civilian labor force that is
without jobs but that is actively looking for work