Chapter 17 Vocab

1. public work projects- publicly used facilities such as schools and parks.
2. Medicare- health care for the aged.
3. public goods- goods or services that government sometimes supplies to its citizens.
4. merit good- defined as any good that the government has deemed socially desirable.
5. demerit goods- goods that the government has deemed socially undesirable.
6. income redistribution- using tax receipts to help citizens in need.
7. social insurance programs- pay benefits to retired and disabled workers, their families, and the unemployed.
8. public-assistance programs- called welfare.
9. welfare- makes payments based on need, regardless of whether an individual or his or her employer has paid taxes.
10. social security-a federal program provides monthly payments to people who are retired or unable to work.
11. workers' Compensation- a state program extends payment for medial care to workers injured on the job.
12. supplemental security income- covers federal programs including food stamps, veterans benefits, and payments to aged or disabled.
13. aid to families with dependent children- is a state run program that provides money to needy single parents raising young children.
14. Medicaid- a state and federal program provides free health car to low income and disabled persons.
15. fiscal year- year by which accounts are kept; for the federal government, October 1 to Sept. 30 of the next year.
16. deficit financing- if the government spends more than it takes in.
17. national debt- debt owed by the nation to pay off bonds, and bills as they come due.
18. balanced budget amendment- proposal to reduce the federal government budget deficits by amending the Constitution.
19. benefits- received principle- system of taxation in which those who use a particular government service support it with taxes in proportion to the benefit they reeve.
20. ability to pay principle those with high incomes pay more taxes tan those with lower incomes regardless of the number of government services they use.
21. progressive tax- has been justified on the basis of the ability to pay principle.
22. regressive tax- is one that falls hardest on those with the least amount of income.
23. proportional tax- is a tax that takes the same percentage of all incomes.