Glossaries of Economic Term-U

uncertain responses

In stabilization policy, the situation when the reactions of individuals and businesses to a policy is not what policymakers predicted (e.g., a decrease in income tax rates that does not increase consumer spending).

unemployment rate

The percentage of the labor force that is unemployed and actively seeking a job.

U.S. Treasury securities

Direct obligations of the U.S. Government, issued by the U.S. Treasury's Bureau of Public Debt as a means of financing the Federal Government. There are three types of securities issued: Treasury bills (T-bills), Treasury bonds, and Treasury notes.

utility

Utility theory explains consumer tastes and preferences. Consumers purchase those things that give them satisfaction or utility. As a consumer consumes more of any one product, other goods and services look more desirable. As one consumes more of a product, smaller and smaller increments of pleasure or satisfaction come from it. The law of diminishing marginal utility underlies the law of demand.