M5: Public Spending and Public Choice
This type of spillover cost to society causes the Supply curve to shift left (decrease).
What is a Negative Externality?
When thinking about the basic Supply curve, generally speaking a tax will cause the Supply curve to do this (think movement).
What is shift left / decrease?
The total number of 16+ aged adults who are able and looking for work but have not yet found a job are known as this.
What is Unemployed?
When studying the two types of Markets, this Market focuses on the factors of production (land, labor, capital, entrepreneurial ability) and income paid to households.
What is the Factor Market?
Positive Externalities cause the Demand curve to do this (because it's a good thing!).
What is Shift Right / Increase?
The government can raise taxes from multiple forms: Income Taxes, Property Taxes, and this type of tax, which is a tax on a specific good (such as tobacco or alcohol).
What are Excise Taxes?
Someone who does not have a job, but does not meet the criteria for Unemployment is considered this.
What is Not Counted in the Labor Force?
What is GDP?
This type of legislation prevents firms from undergoing monopolistic activity.
What is Antitrust Legislation?
The type of curve seen here -- see slides.
What is the Laffer Curve?
This type of Unemployment occurs because of recessions from the business cycle.
What is Cyclical Unemployment?
The "C" found in the Expenditure Approach to finding GDP.
GDP = C + I + G + Nx
What is Consumption / Consumption Expenditures?
The two characteristics of a Public Good are that it is Non-Excludable and __________ in consumption.
A tax ______ refers to the level of income that corresponds to the taxes you must pay.
What is a Tax Bracket?
This type of Unemployment happens because the workers now lack the skills necessary to keep up.
What is Structural Unemployment?
The Foreign _________ Rate measures the price of one country's currency to another.
Think comparing $ to €.
What is Exchange Rate?
The majority of federal government spending goes toward this program, which is meant to help individuals retire.
What is Social Security?
This type of tax means that as income increases, the percentage at which taxes are paid increase as well.
What are Progressive Taxes?
This type of Unemployment occurs because a worker left his job to pursue a new job opportunity.
What is Frictional Unemployment?
(True or False) GDP measures Intermediate Goods, Transfer Payments, Secondhand Goods, and Household Production.
What is False?