Taxes
Direct Tax
just for one person or company
When productive resources are used to generate maximum benefits for society
Dynamic efficiency
Elastic demand
responsiveness to price changes
What is a semiconductor?
A substance that can conduct electricity under some conditions
payment made by a firm to shareholders for providing capital
Taxes passed on to others
Indirect taxes
Dynamic efficiency
ability to respond to changing consumer demands, reallocate resources to new products and industries
Salt and gasoline is in demand regardless of the price
inelastic
A unit of length equal to one billionth of a meter.
Nanometer
float
initial raising of capital for a firm by selling shares to the primary market
Give an example of indirect taxes
customs duty, sales tax, etc.
When at optimal levels, one cannot be better off without making someone worse off
Pareto efficiency
What are some factors that affect demand
substitutes, necessities, complementary goods, Habit-forming goods, time
A tax added to encourage buying Taiwanese semiconductors
tariffs
Who makes the stocks on the primary market?
Australian Stock Exchange ASX
A tax used to offset negative externalities
pigovian tax
Law of diminishing returns
decreasing marginal productivity with one more unit of output
Name 2 complementary goods
gas and car, house and furniture, etc.
What is a boon?
something beneficial
What is a free-rider?
takes benefits without contribution
Give an example of Pigovian tax
taxes on petrol, gas, cigarettes, alcohol, etc
Marginal cost = marginal utility
Allocative efficiency
Name 2 competitive goods
steak and pork, candy and fruit, etc.
What can improve Taiwan's standing in the semiconductor industry?
more locations, improved technology, etc.
How can we deal with the free-rider problem?
pigovian tax, removal, etc.