Term
| What is the price of labor? |
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Definition
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Term
| What is the price of money? |
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Definition
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Term
| What is the price of currency? |
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Definition
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Term
| What is a resource market? |
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Definition
| the market for inputs used to produce goods and services |
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Term
| Interest rate is important because it connects the price of an item today with what? (3 things) |
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Definition
| 1) inflation 2) risk 3) access to money today |
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Term
| What is a foreign exchange market? |
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Definition
| the market in which the currencies of difference countries are bought and sold |
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Term
| What is it called when the government mandates prices? |
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Definition
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Term
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Definition
| when the amount of a good offered for sale is less that the demand by buyers at the existing price |
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Term
| What is a price floor? Give an example. |
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Definition
| legally established minimum price that buyers must pay for a good or resource. ex: minimum wage |
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Term
| What is a price ceiling? Give an example. |
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Definition
| a legal maximum in the price at which a good can be sold. Ex: rent control |
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Term
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Definition
| a market that operates outside the legal system |
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Term
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Definition
| the manner in which the burden of a tax is distributed |
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Term
| What is statutory incidence? |
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Definition
| the person who actually writes the check to the IRS |
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Term
| What is actual incidence? |
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Definition
| person who "actually" pays the tax |
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Term
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Definition
| all the taxes collected by the IRS |
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Term
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Definition
| the per unit percentage where economic activity is taxed |
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Term
| What is a dead weight loss? |
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Definition
| the excess burden of taxation, such as a loss in trade resulting from a tax |
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Term
| What is a progressive tax? |
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Definition
| average tax rate rises with income |
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Term
| What is a proportional (or flat) tax? |
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Definition
| when everyone pays the same percentage of their income |
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Term
| What is a regressive tax? |
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Definition
| average tax rate rises as income decreases |
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Term
| What is the most common type of tax? |
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Definition
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Term
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Definition
| additional tax liability divided by additional income |
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Term
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Definition
| payments that users are required to make if they want to receive certain services |
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Term
| Name 3 government revenues. |
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Definition
| personal income taxes, payroll taxes, and corporate taxes |
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Term
| Name four government expenses |
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Definition
| Health and human services, social security, interest on debt, and defence |
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Term
| What type of behavior is present in both capitalism and socialism? |
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Definition
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Term
| What are the differences between the protective and productive functions of government? |
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Definition
| The protective function includes military, laws and enforcement, and the police force, while the productive function includes public policy and a stable monetary system |
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Term
| What is the Laffer curve? |
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Definition
| A graph that shows how tax rates affect tax revenue |
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Term
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Definition
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Term
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Definition
| jointly consumed goods that are not excludable |
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Term
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Definition
| one who receives a benefit without contributing to their share of its cost |
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Term
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Definition
| withdrawal at age 59.5, before 10% penalty; pretaxed |
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Term
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Definition
| Withdrawal at age 59.5, post taxed |
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