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What is government aid to the poor called?

welfare

What is an income that does not increase over time called?

fixed income

What term describes a rise in the general level of prices?

inflation

What is the part of the economy that involves the transactions of the government?

public sector

What term describes consumers as the rulers of the market, determining the types of goods & services produced?

consumer sovereignty

What business configuration is seen by our legal system as a person?

corporation

What is the study of the economic behavior of small units, such as individuals and businesses?

microeconomics

What is an income level below that which is needed to support families or households?

poverty threshold

What are direct payments of money to eligible poor people called?

cash transfers

What is the incentive to improve one's material well-being?

profit motive

What is someone called who would not choose to pay for a public good, but would get the benefits of it anyway?

free rider

The doctrine which states that the government should not get involved with economic policy.

laissez faire

What is the study of the behavior and decision making of entire economies?

macroeconomics

What is a shared good or service for which it would be impractical to make consumers pay individually?

public good

What are goods and services provided for free or at greatly reduced prices?

in-kind benefits

What is the lowest legal wage that can be paid to most workers?

minimum wage

What is the federal health insurance program for senior citizens called?

Medicare

What are the laws requiring companies to provide full information about their products?

public disclosure laws

What's a situation in which the market does not distribute resources efficiently?

market failure

What is an economic side effect that generates benefits or costs to someone otherwise uninvolved?

externality

What is the federal program of retirement benefits that covers most working people?

Social Security

What is the revenue from sales minus the full cost of producing the sale?

profit

What is the federal health insurance program for low-income citizens called?

Medicaid

What is the part of the economy that involves the transactions of individuals and businesses?

private sector

What is a private organization that tries to persuade public officials to act or vote according to group members' interests?

interest group