Chapter 6
Chapter 6
Chapter 6
If the price elasticity of demand is greater than 1
What is elastic?
A factor that determines price elasticity of demand
What is time elapsed since price change?
A tax on sales of a good or service
What is an excise tax?
The same for everyone regardless of any actions people take
What is the lump sum tax?
Tax on the value of goods sold
What is a sales tax?
If the price elasticity of demand is less than 1
What is inelastic?
On the supply side. If price goes up what happens to supply
What is supply goes up?
A measure of a tax of who really pays the tax
What is the incidence of a tax?
One type of tax city assess against residents
What is income tax?
Tax on the value of property
What is a property tax?
One of the factors that determine price elasticity of demand
What is if the good is a necessity or luxury?
On supply side, if price goes down, what happens to supply
What is supply goes down?
The amount of tax people are required to pay per unit of whatever is being taxed
What is a tax rate?
One type of tax cities assess against residents
What is income tax?
Tax on an individual's wealth
What is a wealth tax?
A factor that determines price elasticity of demand?
What is close substitute?
On the demand side, if price goes up, what happens to demand
What is demand goes down?
Resources used for the collection, for the method of payment and for any attempts to evade the tax
What are administrative costs?
The tax on an individual or family's income
What is an income tax?
Takes a larger share of income of high income taxpayers than of low income taxpayers
What is a progressive tax?
A factor that determines price elasticity of demand
What is the share of income spent on the good?
On the demand side, if price goes down, what happens to demand
What is demand goes up?
Tax fairness-those with the greater ability to pay a tax should pay more tax
What is the ability to pay principle?
Tax on the earnings an employer pays to an employee
What is a payroll tax?
Takes a smaller share of the income of high income taxpayers than of low income taxpayers
What is a regressive tax?