LAISSEZ-FAIRE

Non-interference or “hands off” attitude of the government

towards business

FREE ENTERPRICE SYSTEM

Economic system in which individuals depend on supply and demand and profit margin to answer the 4 basic economic questions of

“what to produce?” “how to produce?” “how much to produce?” and “for whom to

produce?”

DEFICIT

Government spending is greater than tax revenues: government spends more than it takes in, case causes

national debt

SWEATSHOP

A work shop with extremely poor, unsafe, working conditions

INFLATION

A spiraling increase in the monetary supply and rising prices

is wages and prices

OVERPRODICTION

Supply of goods is greater than the demand

UNDERCONSUMPTION

Decrease in demand for goods

RECESSION

An economic slowdown

BUYING ON MARGIN

Buying stocks on credit

DEFLATION

Falling prices and wages along with decrease in the monetary

supply

RATIONING

Government regulation of the supply of critical goods to people

in times of crisis

COMMUNISM

An economic system in which the government own the means of

production, individual efforts are not rewarded, workers work for the nation

MEDICARE

Program under the Social Security Adm. That provides medical care

for the aged

SUNBELT

Relocation of industries from the US Northeast to the South,

Southeast US

SUPPLY SIDE ECONOMICS

Belief that a reduction in taxes will stimulate investment and

productivity

DOLLAR DIPLOMACY

US capitalist (bankers and businessman) invest in Latin

America

OPEN DOOR POLICY

US insist on equal trading privileges for foreign powers in

China

DUST BOWL

Area of severe drought during the 1930’s. Area covered portion of 9

states, caused many farmers to leave California

NEW DEAL PROGRAMS

FDR’s programs of relief, discovery, and reform to end the

Great Depression