Tax Structures
What are the three main tax structures?
Progressive, proportional, and regressive
What is a positive externality?
A benefit that falls on a bystander
The percentage of the nation's labor force that is actively seeking a job but cannot find one
Demand: As quantity increases price does what?
Decreases
What is the free rider problem?
Someone who enjoys the benefits of a good without contributing to the cost.
What type of tax is this: the percentage your income is taxed at remains the same at every income level.
Proportional Taxes
What is a negative externality?
A cost borne by a bystander
What is frictional unemployment?
The typically short-lived period in time in which a worker is in the process of finding a job
Supply: As quantity increases, price does what?
Increases
What type of good is excludable and non-rival?
Club Goods (Netflix, private parks, the European Union, etc)
What type of tax is this: As your income increases, the percentage you owe in taxes increases as well
Progressive Tax
Give an example of a positive externality
the Flu vaccine, reduces the likelihood of bystanders getting the flu leading to less economic cost overall for healthcare and such.
What is structural unemployment?
A mismatch between the skills workers have and the skills employers need.
What are the five supply determinants?
Sellers, productivity, input prices, taxes/subsidies, and expectations
What are examples of common resources?
Public bathrooms, the beach, fish in a lake, timber, etc
What type of tax structure is this: The percentage of income paid in taxes decreased as income increases
Regressive taxes
Give an example of a negative externality
Air pollution caused by factories as this impacts health outcomes (asthma, COPD, birth weight) for near residents.
What are discouraged workers and do they count towards unemployment rates?
What are the two types of related goods?
Substitutional and complementary goods
What does it mean for a good to be rival?
If someone's use of the goods prohibits or limits others from using it
Name five types of other taxes!
Sales taxes, tariffs, property taxes, corporate income taxes, and payroll taxes
Is the market more likely to overproduce or underproduce goods with positive externalities and why?
underproduce because the market price does not reflect the social benefits
What are examples of jobs affected by seasonal unemployment.
Tastes, Related Goods, Income, Population, and Expectation
What is a good that is non-excludable and non-rival?
Public Goods (lighthouses, wikipedia, fresh air, etc)