Supply and Demand
Shifts to the left
The value of goods, services, wealth, or incomes subject to taxation
Tax Base
Occurs when the ingredients (resources) for producing things that people desire are insufficient to satisfy all wants
Scarcity
Things used to produce other things to satisfy people’s wants
Resources
Greenland Capital
Nuuk
Price of Mutton after government announces subsidy
Goes Down
A specified interval of income to which
a specific and unique marginal tax rate
is applied
Tax Bracket
Inputs that are used to produce things that people want
Resources or Factors of Production
The assumption that people do not intentionally make decisions that would leave them worse off
Rationality Assumption
Least Happy Nation according to World Happiness Report
South Sudan
The price of a commodity in terms of another commodity
Relative Price
A tax system in which, as income increases, a higher percentage of the additional income is paid as taxes
Progressive Tax
The ability to produce a good
or service at a lower opportunity cost
A relative concept
Specialize in the production
for which we have a comparative advantage
Comparative Advantage
The set of circumstances in which a model is applicable
Assumptions
Country of Smallest Man Ever Recorded
Nepal (54.6 cm)
Buy less of these goods when have options
The positive difference between the purchase price and the sale price of an asset
Capital Gain
Goods used to produce other goods
Capital Goods
Analysis involving value judgments—a statement of what ought to be
Normative Economics
How many miles is Ninety Mile Beach in New Zealand?
55 miles
The price of a product or service and the quantity supplied are directly related
Law of Supply
Recognizes that higher tax rates may shrink the tax base
As society attempts to produce more of a good, the opportunity cost of additional units of that good generally increases.
Law of Increasing Relative Costs
¨The study of how people allocate their limited ________to satisfy their unlimited ________
Resources, Wants
What is Felicity, Imperial County, California, famous for?
Pyramids