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