Bonus
what's eos
higher output leads to a decrease in costs
what are three different types of taxes
corporate, income, sales, property, inheritance
what is a subsidy
government giving money to good businesses
what's deos
output so high that cost begins to increase again
how do taxes benefit the government
they can use money on public goods
what types of businesses typically get subsidies
businesses producing products good for the community
what are the 4 factors of production
land labour, capital, enterprise
what is progressive tax
people being taxed based on there income
How does a subsidy affect the supply and demand curves?
what is scarcity
rarity of resources
How do taxes impact businesses' costs and competitiveness?
increasing operating expenses, reducing profitability,
Who benefits from a subsidy?
producers and consumers
what is a production possibility curve
shows the options of a combination of goods that can be produced
reducing incentives for work and investment, and potentially slowing down economic growth.
How is the total cost of the subsidy to the government calculated?
Total cost = Value of the subsidy per unit
New equilibrium quantity.