Al?-Oh!-cation
It is the "all else equal" assumption we use in the PPC and Supply and Demand Models
What is ceteris paribus?
What is INELASTIC?
What is redistribution of wealth?
What is redistribution of income?
Governments tend to provide subsidies for these types of goods.
What are a Merit Goods?
What are Goods with Positive Externalities?
What are Socially Beneficial Goods?
The area below demand and above price.
What is consumer surplus?
A Recession causes Incomes to Fall.
What is a leftward shift of demand?
1. Medium of Exchange
2. Unit of Account
3. Store of Value
4. Standard of Deferred Payment
What are the 4 Functions of Money?
Max gets a wage increase. He's happy, and decided to spend it on some diamond earrings. (Bling Bling Baby!)
Diamond earring are this type of good for Max.
What is a Normal Good?
or..
What is a Luxury Good?
Government sends your 86 year old grandma a check for 2,100 RMB for Social Security.
What is a Transfer Payment?
What is Welfare?
This term referes to the burden your "daddy" places upon the buyer and sellers in a market.
What is Incidence (Tax Incidence)?
Taxes increase this and reduce that.
What are increase Government Revenues (or DWL) and reduce Total Surplus (or Welfare).
What is a rightward shift of supply?
No Opportunity Cost for consuming these
What is a Free Good?
Large Amounts of Time required to produce additional units of a good makes the PES of that good MORE this.
What is Inleastic?
or..
What is Vertical? What is Steep?
This list of ideas regarding tax collection (no large Guns) were intended to help governments make tax collection more fair, transparent and equitable for society.
What are the Canons of Taxation? (Not Cannons)
Government gives you a home! (Oh Thanks Daddy!!)
What is a direct provision?
What is a subsidy?
What is subsidisation?
Environmental Policy makes is more difficult to do business.
What is a leftward shift of supply.
Consumption of this type of good actually harms other people.
What is a demerit good?
These types of products have joint demand.
What are complements?
When Governement sells its stake in a business to the private sector by listing it on the stock market.
What is Privatisation?
If "Daddy" does this it could result in a shortage! (Bad Daddy Baaaad!!)
What is an effective Maximum Price?
After the imposition of a tax, this is the area above the supply curve and below the price sellers receive.
What is producer surplus?
2 million visas are issued to students who want to study in the country.
What is a rightward shift of demand.
Inefficient point of allocation.
What is INSIDE the PPF/PPC?
Price changes send contrasting messages to consumers and producers about whether to enter or leave a market.
What is Signalling? (the signalling component of the price mechanism)
This type of tax turns the supply curve in to the two jaws of an alligator's mouth! (OMG!!!)
What is an Ad Valorem Tax or VAT(Value Added Tax)?
Anytime "daddy" gets involved in the free markets it changes this.
What is the Allocation of Resources?
What are Incentives?
(+Other possible answers)
What is Total Surplus?
A complement rises in price. This happens to its related good.
What is the demand shifts to the left?