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a mandatory payment collected individuals and corporations by a government entity to fund government activities
a mandatory payment collected individuals and corporations by a government entity to fund government activities
drives a wedge between the price that buyers pay and the price sellers receive
drives a wedge between the price that buyers pay and the price sellers receive
raises the price buyers pay, lowers the price sellers receive, reduces the quantity bought and sold
raises the price buyers pay, lowers the price sellers receive, reduces the quantity bought and sold
give the 5 principles of taxation
give the 5 principles of taxation
holds that people with more income should pay more taxes
holds that people with more income should pay more taxes
is one that takes a higher percentage of income as income falls (e.g., taxes on cigarettes)
is one that takes a higher percentage of income as income falls (e.g., taxes on cigarettes)
is one that takes a fixed percentage of income
is one that takes a fixed percentage of income
in, proportional tax, what happens to total taxes as income increases
in, proportional tax, what happens to total taxes as income increases
is one that takes a higher percentage of income as income rises
is one that takes a higher percentage of income as income rises
an alternative criterion for establishing a tax structure is the benefits received principle, which holds that a tax should be based on the benefits received from the government services funded by the tax
an alternative criterion for establishing a tax structure is the benefits received principle, which holds that a tax should be based on the benefits received from the government services funded by the tax
give the 4 primary types of taxes
give the 4 primary types of taxes
are imposed on the income earned by a person or firm
are imposed on the income earned by a person or firm
taxes imposed in assets
taxes imposed in assets
taxes imposed on the value of goods sold
taxes imposed on the value of goods sold
taxes imposed as a percentage of firms’ sales and are generally imposed on retail sales
taxes imposed as a percentage of firms’ sales and are generally imposed on retail sales
taxes imposed on specific goods or services
taxes imposed on specific goods or services
justified as a way of discouraging the consumption of demerit good, such as cigarettes and alcoholic beverages
justified as a way of discouraging the consumption of demerit good, such as cigarettes and alcoholic beverages
a kind of benefits-received tax
a kind of benefits-received tax
a type of economic analysis that seeks to determine where the actual burden of a tax rests
a type of economic analysis that seeks to determine where the actual burden of a tax rests
the tax rate that applies to an additional dollar of income earned
the tax rate that applies to an additional dollar of income earned
the study of government expenditure and tax policy and of their impact on the economy
the study of government expenditure and tax policy and of their impact on the economy
include all spending by government agencies
include all spending by government agencies
include all funds received by government agencies
include all funds received by government agencies
the primary component of government revenues
the primary component of government revenues
purchases happen when a government agency purchases or produces a good or a service
purchases happen when a government agency purchases or produces a good or a service
payments made by government agencies to individuals in the form of grants rather than in return for labor or other services
payments made by government agencies to individuals in the form of grants rather than in return for labor or other services
occurs when a government’s revenues equal its expenditures for a particular period
occurs when a government’s revenues equal its expenditures for a particular period
represent government expenditures but not government purchase
represent government expenditures but not government purchase
occurs if a government’s revenues exceed its expenditures
occurs if a government’s revenues exceed its expenditures
exists if government expenditures exceed revenues
exists if government expenditures exceed revenues
• The benefit received by buyers in a market is measured by
• The benefit received by buyers in a market is measured by
• The benefit received by sellers in a market is measured by
• The benefit received by sellers in a market is measured by
is the income that collected by governments through taxation
is the income that collected by governments through taxation
is the sum of consumer, produce surplus, and tax revenue
is the sum of consumer, produce surplus, and tax revenue
it’s the area between the supply and demand curves up to the equilibrium quantity
it’s the area between the supply and demand curves up to the equilibrium quantity
the fall in total surplus that results when a tax (or some other policy) distorts a market outcome
the fall in total surplus that results when a tax (or some other policy) distorts a market outcome
