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

57.WHAT IS ONE EXAMPLE OF THE GOVERNMENT “REDISTRIBUTING INCOME?”  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.LIBERALS BELIEVE THAT THE FEDERAL GOVERNMENT CAN STIMULATE AN ECONOMY BY DOING WHAT?  By using stabilization policies  Ex. Federal gov.’s use of taxation and spending policies to affect business activity  Pg. 451

62.CONSERVATIVES BELIEVE THAT THE FEDERAL GOVERNMENT CAN STIMULATE AN ECONOMY BY DOING WHAT?  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