Taxes
What is the main purpose of taxes in an economy?
What is to fund government services?
What market structure has many sellers and identical products?
What is perfect competition?
What happens to the quantity demanded when the price increases?
What is it decreases?
What is the simplest and most common type of business ownership?
What is a sole proprietorship?
What are the four phases of the business cycle?
What are expansion, peak, contraction, and trough?
What type of tax takes a higher percentage from low-income earners?
What is a regressive tax?
Which market structure is dominated by a few large firms?
What is an oligopoly?
What is the point where supply equals demand called?
What is equilibrium?
A business owned by two or more people is called what?
What is a partnership?
What is a period of declining GDP and rising unemployment called?
What is a recession?
Sales taxes and excise taxes are examples of what kind of tax?
regressive or indirect
What market structure features only one seller?
What is a monopoly?
What does a rightward shift of the demand curve indicate?
What is an increase in demand?
What is a major advantage of a corporation?
What is limited liability?
What phase of the business cycle is associated with full employment and growth?
What is expansion?
What is the term for income remaining after taxes are paid?
What is disposable income?
In monopolistic competition, how do firms differentiate themselves?
What is through branding and advertising?
Give two things that can change supply
technology, trends, cost of resources
What type of merger combines companies involved in different stages of production?
What is a vertical merger?
What is stagflation?
What is a period of slow growth combined with inflation?
What type of tax is the U.S. income tax? NC income tax?
Progressive and flat
Give 2 barriers to entry with a monopoly or natural monopoly
high startup costs and legal restrictions
If the government imposed a price ceiling on rental housing that is below the market equilibrium. What is the likely to happen to demand?
Demand would increase
What is it called when the government uses a "hands off" approach to the economy?
Laissez Faire
What are three major tools of monetary policy and two major tools of fiscal policy?
Monetary policy tools – reserve requirements, changing the interest rate and open market operations
Fiscal policy tools – increasing government spending and cutting taxes