Economics Chp 3 – Flashcards
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Interest group
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A private organization that attempts to influence public officials to act or vote in ways that will benefit the groups members.
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Free Rider
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A person who consumes a good or service but does not pay for it.
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Gross domestic product
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The total value of all goods and services produced in a particular economy.
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Positive externality
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An economic side effect that generates unexpected benefits.
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Externality
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An economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume.
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Each payday some of your pay is withheld as payroll deductions for Social Security. What happens to the money that is withheld?
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It is redistributed as cash transfers to elderly and disabled people.
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An example of a requirement of public disclosure laws
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Car dealers must display a sticker stating the fuel efficiency of the car.
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A new runway has opened up at the airport and the flight path goes right over your house- the noise is a
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Negative Externality
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Provisions of Temporary Assistance for Needy Families (TANF)
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Work incentives, lifetime limit of benefits, state fun welfare programs.
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You will still be able to receive public broadcasting whether or not you contribute to their campaign- this is an example of?
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Free Rider
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What effects does new technology usually have on an economy?
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It makes the economy stronger and more efficient
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What protections does OSHA give to people
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Regulations on workplace safety and information about hazards in the workplace.
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Examples of public goods
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Municipal libraries, highways, national parks
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A critical rule for determining whether something is a public good
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When the total benefits to society are greater than the total cost
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Why does the government protect inventors and authors by offering them patents and copyrights?
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To encourage enovation
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A large telephone company has hired lobbyists to try to persuade lawmakers to reduce government regulation over the telecommunication industry- why might the company do this?
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Some regulations are costly to implement and cut in-to profits
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You read an article that explains how the economy has expanded for several years and then went into period of contraction- what was the subject of this article?
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The business cycle
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One benefit provided by Social Security
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Retirement income for the elderly.
