In this type of economy, the government controls the economy and who, what, for whom to produce
Command
100
This was added to the Constitution to let the fed' gov't tax individual incomes
16th amendment
100
If price was reduced by 30% but demand rises by 25% in response, the demand is _____
inelastic
100
(A country’s ability to produce more of a given product than another country)
absolute advantage
100
Bill clinton signed this free trade agreement
Nafta
200
In this type of economy, freedom to choose is key and the consumer decides, by "voting with his dollars," which products are produced
market economy
200
This principle states that those who can most afford it should pay the most taxes
ability to pay
200
Where the final burden of a tax falls
incidence of tax
200
Tax on imports designed to increase their price in the domestic market)
protective
200
40. Medicare tax is 1.45% of income, what type of tax is this?
proportional
300
adam smith thought that THIS controls the economy better than a centralized authority
an invisible hand
300
An even $1 tax on milk is what kind of tax?
regressive
300
Peanut butter and jelly are _____ goods
complement
300
Ability to produce a product relatively more efficiently or at a lower opportunity cost)
comparative advantage
300
36. The agreement signed into law in 1993 to reduce tariffs and increase trade between the US, Mexico, and Canada
nafta
400
A government program funded by payroll taxes, THIS helps senior citizens with health care
medicare
400
Those who use roads the most automatically pay for road upkeep because tax is built into the price of gas, so those who drive most, pay for the service -- this is the ____ principle
benefit principle
400
When a person gets a raise at work, his demand for products might rise, regardless of the price of those products, this is due to the ____ effect
income
400
Limit on the quantity of a product that may be imported)
quota
400
Tariffs and quotas are designed to
Make foreign imports artificially more expensive, so Americans are made to buy the domestic product, thus protecting domestic industries from foreign competiton
500
The president who signed nafta into law
william jefferson clinton
500
When the cost of a hotdogs goes up, you might start demanding beef instead -- this is due to the ____ effect
substitution
500
a feature of 1981 tax reform, this allows companies to declare their "stuff" is older than it really is, thus reducing the company's tax burden
Accelerated depreciation
500
Ann earns $10,000 a year and pays a tax of $1,000. Shaquil earns $60,000 during the same period and pays taxes of $20,000. The tax they both paid was a