Taxes and Tariffs
What is the difference between a progressive tax and a regressive tax?
Progressive is higher tax rate as income increase
Regressive is higher tax rate for all income levels
What is a free rider?
person who benefits from something without expending effort or paying for it
a gesture, action, or sound that is used to convey information
Define a monopoly
One company producing a unique good
What is a tariff?
a tax or duty to be paid on a particular class of imports and exports
Whose preferences are candidates going to try and match?
The median voters
When people who have insurance against a certain event, they are less likely to guard against the event occuring. What is this called?
Moral Hazard
How do you calculate profit?
total Revenue- total costs
Which of the following are taxed by the government?
Income
Property
Purchases
All of them!
What is rent seeking?
When individuals manipulate policy for their own gain
When the benefits outweigh the costs
Adverse selection is caused by
Asymmetric information
Man responsible for the "invisible hand"
Adam Smith
Rivarly in Consumption
Two people cannot consume the same good simultaneously
Public goods are: 2 words
Non-rival
Non-excludable
When the tax rate is the same for every individual, regardless of their income level, is called?
Proportional tax
Prices
You say you are going to eat all the mashed potatoes at Thanksgiving dinner so no one else can have any. What is this an example of?
Rivalry in consumption